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
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, advisors, 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.
Strong Performance
Target Date Solutions
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.
Retirement Funds
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.
Target Date Strategies
Our Strategic Investing Approach has Benefited Our Target Date Funds
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. 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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Clear selectionGlide 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%
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
