Target date retirement series | American Funds

Target date funds

A smart choice for investing for retirement

The American Funds Target Date Retirement Series® is a professionally managed collection of mutual funds designed to help you invest for retirement and meet your changing financial needs over time.

One fund. Many benefits.

Each fund is made up of a broad range of investments. That’s important when saving for retirement because spreading your investment dollars among different types of investments can help reduce volatility.

 

 


American Funds Target Date Retirement Series

Investments in American Funds® target date funds are allocated among a diversified portfolio of stocks and bonds. Investors select a target date fund, typically the one nearest their anticipated retirement date. Over time, that fund's mix of stocks and bonds will shift toward more conservative investments. This gradual shift over time is called a "glide path."

Here’s how it works:

  • Significant stock investments throughout the lifetime of your fund can help manage the risk of outliving your savings in retirement.
  • An increased emphasis on bonds as you near your retirement date can help manage the risk of market declines.
  • The fund is managed beyond retirement, so you could feasibly use a single fund for decades.

Our objective-based glide path

The allocations shown reflect the funds’ target allocations as of the most recent prospectus. The funds’ investment adviser anticipates that the funds will invest their assets within a range that deviates no more than 10% above or below the allocations set forth above. Allocation percentages and underlying funds are subject to the Portfolio Oversight Committee’s discretion and will evolve over time. Underlying funds may be added or removed during the year. Changes in the equity allocation within the underlying equity-income and balanced funds may affect the overall equity exposure in the target date funds. For quarterly updates of fund allocations, visit americanfundsretirement.com.


Benefit from professional oversight and a commitment to low fees
 

Low fees are crucial to positive investor outcomes

There are fees and expenses associated with investing through an employer’s retirement plan. High investment fees and costs can reduce your long-term retirement savings. The lower the costs, the better it is for you.
 

Experience can make a difference

Our target date funds are managed by a Portfolio Oversight Committee, a team of veteran investment professionals who have navigated good and bad market conditions.


An emphasis on stocks

Our approach to allocating between stocks and bonds puts more emphasis on stocks than some other target date funds. This helps manage the risk of investors outliving their savings. We also place a greater emphasis on dividend-paying stocks in an effort to provide more equity exposure while managing volatility.
 

Investment professionals invest alongside you

In addition to managing the funds, our investment professionals invest their own money in the funds.

 


Award-winning funds

  • Six of our American Funds target date retirement funds have won 2018 Lipper® Fund Awards for superior risk-adjusted results. This marks the fifth year in a row our target date series has taken home multiple Lipper awards.*
  • Eight of the underlying equity funds in the American Funds Target Date Retirement Series were recognized on the Morningstar® "Terrific 28" list.

 

*The 2018 Lipper Fund Awards were awarded on February 27, 2018. Fund awards were based on risk-adjusted returns as of November 20, 2017. Six funds in the American Funds Target Date Retirement Series (R-6 share class) were cited as Best Mixed-Asset Target Funds for five-year time frames based on the Consistent Return as defined by superior consistency and risk-adjusted return when compared to Lipper Mixed-Asset Target Date Fund peer groups.

Source: Morningstar, September 4, 2018, “Fund Spy: 28 Terrific Funds,” by Russel Kinnel. Morningstar's criteria for the “Terrific” list include: cheapest quintile of broad level category groupings, manager investment of more than $1 million in the fund, Morningstar Risk rating below the High level, Morningstar Analyst Rating of Bronze or higher, Parent rating of Positive, returns above the fund's benchmark (blended) over the manager's tenure. The criteria have changed over the years. Not all eight funds listed in the “Terrific 28” are in each target date fund. Underlying funds may change over time.

Find your target date fund

The "target date" is the year closest to the year you plan to retire. To find your target date fund, add your birth year to the year you plan to retire and begin taking retirement withdrawals. The retirement age is 65 for many investors but may be different for you.

 

To determine your retirement year:

 

 Birth year

    +      Retirement age


 Retirement year

Select the fund that is closest to your retirement year

2060  |  2055  |  2050  |  2045  |  2040  |  2035  |  2030  |  2025  |  2020  |  2015  |  2010

 

 

 

 


Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing. 

Although the target date funds are managed for investors on a projected retirement date time frame, the funds' allocation strategy does not guarantee that investors' retirement goals will be met. The target date is the year in which an investor is assumed to retire and begin taking withdrawals. American Funds investment professionals manage the target date fund's portfolio, moving it from a more growth-oriented strategy to a more income-oriented focus as the fund gets closer to its target date. Investment professionals continue to manage each fund for 30 years after it reaches its target date. 

Content contained herein is not intended to serve as impartial investment or fiduciary advice. The content has been developed by Capital Group, which receives fees for managing, distributing and/or servicing its investments.