Target Date Retirement Series | American Funds

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Target Date Funds

A Smart Choice for Investing for Retirement

A target date fund is a professionally managed collection of mutual funds designed to help you invest for retirement.

One Fund, Many Benefits

A Long-Term Investment

Target date funds are designed to help you invest for retirement and meet your changing needs over time.

A Variety of Investments

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.

Investments That Change Over Time

Investment professionals adjust the investment mix to become more conservative as the target date approaches. This can help provide a measure of protection from market declines.

Professional Oversight

Investment professionals manage the investment mix so you don’t have to. In fact, some continue to manage the funds for an additional 30 years into retirement.

 


An Investment Mix That Changes Over Time

The investments in a target date fund change over time based on the target retirement date. This gradual shift is called a “glide path.”

 

Here’s how it works:

1. Significant stock investments throughout the lifetime of your fund can help manage the risk of outliving your savings in retirement.

2. An increased emphasis on bonds as you near your retirement date can help manage the risk of market declines.

3. May continue to be managed beyond retirement, so you could feasibly use a single fund for decades.

 

The Investment Mix Changes Over Time

For illustrative purposes only. Not intended to portray an actual glide path. Stock and bond allocations will vary among different target date funds.


Benefit From Professional Oversight and a Commitment to Low Fees


Experience Can Make a Difference

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

Our Investment Professionals Invest Alongside You

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

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.


Award-Winning Funds

  • Six of our American Funds target date retirement funds have won 2018 Lipper Fund Awards for superior results. This marks the tenth year in a row American Funds has taken home multiple Lipper awards.*
  • Thirteen of the underlying funds in the American Funds Target Date Retirement Series were recognized on the Morningstar Fantastic 43 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, Fund Spy, “Kinnel: 43 Fantastic Funds,” September 2017. Morningstar’s criteria for the Fantastic lists included: cheapest quintile of category, 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, and returns above the fund’s benchmark over the manager’s tenure. Fantastic criteria has changed over the years. Visit americanfunds.com/advisor/news/morningstar-fantastic.html for more details. Not all 13 funds listed in the “Fantastic 43” 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.