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 ability to achieve strong long-term returns1 over time has the potential to deliver investors more money in retirement. These returns show how our strategic investing approach beat the index, even after accounting for the impact of fund expenses.
Our approach can mean larger balances for retirement.
Our Retirement 2030 Fund outpaced the S&P Target Date 2030 Index since its inception over 18 years ago (9/30/2002–12/31/2020)
We have delivered better outcomes for retirement investors.
Our approach can mean more money for retirement investors. This chart shows how our Retirement 2030 Fund delivered an extra $107,000 over 18 years since inception compared with a passive approach. These returns show how our strategic investing approach beat the index, even after accounting for the impact of fund expenses.
As of 12/31/2020, the fund’s 1-, 5-, and 10-year average annual total returns were 15.90%, 11.34%, and 9.76%, respectively.
Current performance may be higher or lower than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or loss when you sell your shares. Average annual total return figures include changes in principal value, reinvested dividends, and capital gain distributions. To obtain the most recent month-end performance, visit troweprice.com. Not all investors will obtain these results.
Expense ratio for the Retirement 2030 Fund is 0.64% as of the most recent prospectus.
1 T. Rowe Price’s 11 out of 11 Retirement Funds outperformed their benchmarks. Funds included in the study were those that had a 10-year performance history as of December 31, 2020. Data analysis by T. Rowe Price. Source: S&P.
Source for S&P data: S&P. “Standard & Poor.s®”, “S&P®”, “S&P 500®”, “Standard & Poor.s 500”, and “500” are trademarks of Standard & Poor.s, and have been licensed for use by T. Rowe Price. The fund is not sponsored, endorsed, sold or promoted by Standard & Poor.s and Standard & Poor.s makes no representation regarding the advisability of investing in the fund.
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.
Through this time of uncertainty, our experienced target date team is staying grounded and focused on delivering successful retirement outcomes.
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.
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 Glide Path Design
Our two glide paths were designed to balance the three primary investment risks participants face:
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.
Contact Us
Need help? Speak to one of our DCIO sales consultants.
General Inquiries
800.371.4613
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.
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Glide Path Design
Our two glide paths were designed to balance the three primary investment risks participants face:
- Longevity Risk
- Inflation Risk
- 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%
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Investment Approach
We believe retirement accounts are designed to achieve two primary goals:
- Accumulation of Wealth Prior to Retirement
- Conversion of Wealth to Income During Retirement
Target Date Glide Path Comparison
At T. Rowe Price, our research shows that plan sponsors have two primary investment objectives for their plans...
Asset Allocation Committee Strategy
Asset Allocation Committee Strategy
The T. Rowe Price Asset Allocation Committee evaluates the relative attractiveness of major asset classes over a 6- to 18-month time horizon. Read MoreDownload our most recent viewpoints
Contact Us
Need help? Speak to one of our DCIO sales consultants.
- 800.371.4613
General Inquiries
