Target Date Fund Investment Mix | American Funds

American Funds
Target Date
Retirement Series®

Set Your Sights on Retirement and Beyond.

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An investment mix that changes over time

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), of stocks and bonds will gradually shift toward more conservative stocks as well as bonds. This gradual shift over time is called a "glide path."

The allocations shown reflect the funds' target allocations for January 1, 2018. 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 

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. 


The benefit of saving for retirement

Target date funds make it easy to start saving for retirement. Of course, the longer you have to invest, the better your potential to realize your retirement goals.

See how contributions to your plan could add up over time:


* This example is for illustrative purposes only and does not reflect the results of any particular investment, which will fluctuate with market conditions. An 8% average annual return rate, compounded every two weeks, is assumed. Retirement plan distributions of before-tax contributions are subject to ordinary income tax and, if applicable, to an additional 10% federal tax penalty on early withdrawals.

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. 

Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries. Small-company stocks entail additional risks, and they can fluctuate in price more than larger company stocks. 

The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. Investments in mortgage-related securities involve additional risks, such as prepayment risk, as more fully described in the prospectus. While not directly correlated to changes in interest rates, the values of inflation-linked bonds generally fluctuate in response to changes in real interest rates and may experience greater losses than other debt securities with similar durations. 

Each target date fund is composed of a mix of the American Funds and is subject to the risks and returns of the underlying funds. Underlying funds may be added or removed during the year. 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. 

Fund shares of U.S. Government Securities Fund are not guaranteed by the U.S. government.

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.