To make investing easier, we developed a suite of pre-assembled, age-appropriate retirement investments.
These well-built strategies can simplify the investment process for employees at any stage of the retirement planning process.
These strategies offer three key features:
Addressing fiduciary responsibilities
Generally, a plan sponsor's fiduciary responsibility is to help participants meet their retirement goals by providing a balanced investment offering and encouraging proper asset allocation. Plan sponsors face significant challenges, including employee inertia and apathy when trying to encourage plan participation and proper diversification. These retirement investment strategies offer a one-step solution to help address these issues.
The principal value of the Retirement 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 funds' allocations among a broad range of underlying T. Rowe Price stock and bond funds will change over time. The 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 postretirement withdrawal horizon. The funds are not designed for a lump-sum redemption at the target date and do not guarantee a particular level of income. The funds maintain a substantial allocation to equities both prior to and after the target date, which can result in greater volatility over shorter time horizons.
1For all funds in the Retirement Funds Series, Investor share class, excluding the new Target Retirement Funds. The Morningstar Analyst Rating is not a credit or risk rating. It is a subjective evaluation performed by the mutual fund analysts of Morningstar, Inc. Morningstar evaluates funds based on 5 key pillars, which are process, performance, people, parent, and price. Morningstar's analysts use this 5-pillar evaluation to identify funds they believe are more likely to outperform over the long term on a risk-adjusted basis. Analysts consider quantitative and qualitative factors in their research, but the assessment of each pillar and how they are combined is driven by the analysts' overall assessment and overseen by Morningstar's Analyst Rating Committee. The approach serves not as a formula but as a framework to ensure consistency across Morningstar's global coverage universe.