Deep experience with how markets and investors behave informs our Target Date Solutions.

As target date leaders, we go further to understand the full story. That means we combine our investment expertise with decades of data on investor behavior to create retirement solutions that help drive positive outcomes.

  • Investor preferences are translated into a range of portfolios
  • Underlying performance is driven by our strategic investing approach
  • Innovation and testing ensure our solutions align with evolving needs

A History of Strong Performance

Pursuing strong long-term returns for a better retirement.

Our track record of delivering strong, long-term returns over time has the potential to deliver investors more money in retirement. These returns show how our strategic investing approach beat benchmarks, even after accounting for the impact of fund expenses. 

Our approach has meant larger balances for retirement.

Each and every T. Rowe Price Retirement Fund with at least 10 years of history has generated a higher balance for inves­tors compared with its corresponding S&P Target Date Index benchmark since launching through March 31, 2021. 

Retirement Funds Chart

View standardized returns, expense ratios, and other information about the funds in this analysis.

Past performance cannot guarantee future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original value. Current performance may be higher or lower than the performance data quoted. To obtain the most recent month‑end performance, visit troweprice.com.

Average annual total return figures include changes in principal value, reinvested dividends, and capital gain distributions.

^Index performance is for illustrative purposes only and is not indicative of any specific investment. Investors cannot invest directly in an index.

*S&P Target Date 2045 Index from Fund inception to 5/31/08. S&P Target Date 2050 Index 6/1/08 to 3/31/21.

**S&P Target Date 2045 Index from Fund inception to 5/31/09. S&P Target Date 2050 Index 6/1/09 to 3/31/21.

The T. Rowe Price Retirement 2060 and 2065 Funds were omitted from this analysis because they have less than 10 years of performance history.

Strong Performance Image

We believe that investment success for multi-asset solutions comes from balancing market, inflation, and longevity risks. This principle is at the core of our target date philosophy.

With a consistent investment approach and cutting-edge innovations, our solutions are designed to help your clients reach their financial goals in retirement in the face of changing markets.

Through this time of uncertainty, our experienced target date team is staying grounded and focused on delivering successful retirement outcomes.

Morningstar Gold Award

T. Rowe Price Retirement Funds have received the Gold Analyst Rating by Morningstar, their highest rating offered.**

Retirement 2005-2060 Funds Investor Class and Retirement I Funds Class, as of 2/19/21 Morningstar US Fund Target Date Category.

Here's How We Go Further to Get the Full Story

Multi-Asset team seeks to understand investors’ retirement goals to help determine appropriate investment strategies

Developing and managing a retirement investment strategy for millions of investors with wide-ranging needs is a daunting challenge. To meet those demands, an experienced team of T. Rowe Price investment professionals knows that some of the best analysis they can draw on is from the individuals who will be impacted by their decisions.  See why the team regularly travels the country to talk to plan sponsors, financial professionals, consultants, and individuals.
 

Combining our understanding of investor behavior with our strategic investing approach to evolve our Target Date Solutions

See how our Target Date Solutions are informed by a deep understanding of investor behavior and fueled by our strategic investing approach.

How can we make you look good?

Target Date Expertise

In target date investing, it is critical to align glide-path design with investors' objectives. To understand the potential trade-offs, it is not only important to evaluate the magnitude of potential losses, but also to view that potential in the context of the full investment life cycle.

Target Date Expertise

Target Date Glide Path Design

Our two glide paths were designed to balance the three primary investment risks participants face:

TD Glide Path

IMPORTANT CHANGES TO THE TARGET DATE FUNDS: T. Rowe Price is making changes to the glide path of our target date funds. The glide path will be transitioning to the allocations shown above. Specifically, beginning in the second quarter of 2020, the funds’ glide path will gradually change to increase its overall equity allocation at certain points and accordingly decrease its bond allocation. Note that there will be no change to the allocation at the target retirement date. For example, the equity allocation at the beginning of the enhanced glide path will be increasing from the original 90% allocation and will be increasing from the original 20% allocation at the end of the glide path. Adjustments to equity and bond allocations will be made incrementally, and we expect the transition to the enhanced glide path to be completed in the second quarter of 2022, depending on market conditions. The 2065 vintage follows the enhanced glide path and does not have a transition period. Please download a prospectus for additional details.

Retirement

The glide path has a higher equity allocation to address inflation and longevity risks.

55% Equity Allocation at Target Date

Target

The glide path has a more moderate equity exposure to address market risk.

42.5% Equity Allocation at Target Date

Enhancements to Our Target Date Strategies

We believe these enhancements to our glide paths find the right balance between preservation and growth to help our clients achieve the desired outcomes for their retirement.

Target Date Resources

You know the kind of lifestyle your clients dream of having in retirement. Getting clients where they want to go may be easier than you think.

Help Your Clients

Fiduciary Misconceptions

Five Guiding Fiduciary Principles

These essentials under ERISA can aid fiduciaries in selecting and monitoring investment options and assessing active strategies within their plan lineup.

As participants invest for retirement, they face three primary investment risks: market, longevity, and inflation. As a target date manager, T. Rowe Price strives to strike a balance between these three risks.

Contact Us

Need help? Speak to one of our DCIO sales consultants.

General Inquiries
800.371.4613

Bicycle Handle Bars


Every day, we go further to get the full story.

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View Performance and data for all our Target Date Funds.

Important Information

The principal value of the Retirement Funds and Target Funds (collectively the “Target Date Funds”) is not guaranteed at any time, including at or after the target date, which is the approximate year an investor plans to retire (assumed to be age 65) and likely stop making new investments in the fund. If an investor plans to retire significantly earlier or later than age 65, the funds may not be an appropriate investment even if the investor is retiring on or near the target date. The Target Date Funds’ allocations among a broad range of underlying T. Rowe Price stock and bond funds will change over time. The Retirement Funds emphasize potential capital appreciation during the early phases of retirement asset accumulation, balance the need for appreciation with the need for income as retirement approaches, and focus on supporting an income stream over a long-term retirement withdrawal horizon. The Target Funds emphasize asset accumulation prior to retirement, balance the need for reduced market risk and income as retirement approaches, and focus on supporting an income stream over a moderate postretirement withdrawal horizon. The Target Date Funds are not designed for a lump-sum redemption at the target date and do not guarantee a particular level of income. The key difference between the Retirement Funds and the Target Funds is the overall allocation to equity; although they each maintain significant allocations to equities both prior to and after the target date, the Retirement Funds maintain a higher equity allocation, which can result in greater volatility over shorter time horizons. Diversification cannot assure a profit or protect against loss in a declining market.

All investments are subject to risk, including the possible loss of principal.

The “S&P Target Date Index” is a product of S&P Dow Jones Indices LLC, a division of S&P Global, or its affiliates (“SPDJI”), and has been licensed for use by T. Rowe Price.

Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC, a division of S&P Global (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); T. Rowe Price’s Products are not sponsored, endorsed, sold, or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P Target Date Index.

**Gold Ratings apply to the Investor Class and Retirement I Fund Class of the funds as of February 19, 2021.  Analyst Ratings for other share classes or other T. Rowe Price target date series may differ. The 2065 vintage has not been rated due to its limited history.

The Morningstar Analyst Rating™ is not a credit or risk rating. It is a subjective evaluation performed by Morningstar’s manager research group, which consists of various Morningstar, Inc. subsidiaries (“Manager Research Group”). In the United States, that subsidiary is Morningstar Research Services LLC, which is registered with and governed by the U.S. Securities and Exchange Commission. The Manager Research Group evaluates funds based on five key pillars, which are process, performance, people, parent, and price. The Manager Research Group uses this five-pillar evaluation to determine how they believe funds are likely to perform relative to a benchmark over the long term on a risk adjusted basis. They consider quantitative and qualitative factors in their research. For actively managed strategies, people and process each receive a 45% weighting in their analysis, while parent receives a 10% weighting. For passive strategies, process receives an 80% weighting, while people and parent each receive a 10% weighting. For both active and passive strategies, performance has no explicit weight as it is incorporated into the analysis of people and process; price at the share-class level (where applicable) is directly subtracted from an expected gross alpha estimate derived from the analysis of the other pillars. The impact of the weighted pillar scores for people, process and parent on the final Analyst Rating is further modified by a measure of the dispersion of historical alphas among relevant peers. For certain peer groups where standard benchmarking is not applicable, primarily peer groups of funds using alternative investment strategies, the modification by alpha dispersion is not used.

The Analyst Rating scale is Gold, Silver, Bronze, Neutral, and Negative. For active funds, a Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group’s expectation that an active fund will be able to deliver positive alpha net of fees relative to the standard benchmark index assigned to the Morningstar category. The level of the rating relates to the level of expected positive net alpha relative to Morningstar category peers for active funds. For passive funds, a Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group’s expectation that a fund will be able to deliver a higher alpha net of fees than the lesser of the relevant Morningstar category median or 0. The level of the rating relates to the level of expected net alpha relative to Morningstar category peers for passive funds. For certain peer groups where standard benchmarking is not applicable, primarily peer groups of funds using alternative investment strategies, a Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group’s expectation that a fund will deliver a weighted pillar score above a predetermined threshold within its peer group. Analyst Ratings ultimately reflect the Manager Research Group’s overall assessment, are overseen by an Analyst Rating Committee, and are continuously monitored and reevaluated at least every 14 months.

Detailed information about Morningstar's Analyst Rating, including its methodology.

The Morningstar Analyst Rating (i) should not be used as the sole basis in evaluating a fund, (ii) involves unknown risks and uncertainties which may cause the Manager Research Group’s expectations not to occur or to differ significantly from what they expected, and (iii) should not be considered an offer or solicitation to buy or sell the fund.

© 2021 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

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Glide Path Design

Our two glide paths were designed to balance the three primary investment risks participants face:

  1. Longevity Risk
  2. Inflation Risk
  3. Market Risk

Retirement

The glide path has a higher equity allocation to address inflation and longevity risks. 
 

Equity Allocation at
Target Date

55%

Target

The glide path has a more moderate equity exposure to address market risk. 
 

Equity Allocation at
Target Date

42.5%

Our target date funds honored with 15 Lipper Fund Awards.

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Investment Approach

We believe retirement accounts are designed to achieve two primary goals:

  1. Accumulation of Wealth Prior to Retirement
  2. Conversion of Wealth to Income During Retirement

Target Date Glide Path Comparison

Glide Path Comparison

At T. Rowe Price, our research shows that plan sponsors have two primary investment objectives for their plans...

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Need help? Speak to one of our DCIO sales consultants.
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