![](https://static.capitalgroup.com/content/dam/cgc/shared-content/images/photos/headshots/cg/headshot-Ilia-Lanski-600x600.jpg)
Ilia Lanski
Solutions Analyst
![](https://static.capitalgroup.com/content/dam/cgc/shared-content/images/photos/headshots/cg/headshot-Paramaguru-Raj-600x600.jpg)
Raj Paramaguru
Solutions Portfolio Manager
![](https://static.capitalgroup.com/content/dam/cgc/shared-content/images/photos/headshots/cg/wesley-phoa-color-600x600.jpg)
Wesley Phoa
Solutions Portfolio Manager
![](https://static.capitalgroup.com/content/dam/cgc/shared-content/images/photos/headshots/cg/headshot-Yung-Wang-600x600.jpg)
Yung Wang
Quantitative Engineer
![](https://static.capitalgroup.com/content/dam/cgc/shared-content/images/photos/headshots/cg/headshot-brett-hammond-color-600x600.jpg)
Brett Hammond
Research Leader
Originally developed in academia, life cycle models now have important real-world applications to the design of target date funds. In this paper, Capital Group researchers discuss implications of these models for target date management.
- Target date models in reality are “one size fits most.” By helping to define “most,” life cycle models can inform retirement plan design, participation communication and investment decision-making.
- A target date glide path shares common assumptions with the life cycle model regarding investor characteristics and capital markets assumptions.
- Asset allocations should be flexible between stocks and bonds but balanced appropriately to ensure the glide path delivers the required pattern of investment returns while managing risk.
- Life cycle models can be used to calibrate target date models — we take an interactive, iterative approach to addressing problems like transitory and permanent “income shocks” that can derail investors.
Ilia Lanski is a solutions analyst with 23 years of industry experience (as of 12/31/22). He holds a PhD in theoretical physics from the Budker Institute of Nuclear Physics and a master’s degree in physics from Novosibirsk State University, both in Russia.
Raj Paramaguru is a solutions portfolio manager with 26 years of industry experience (as of 12/31/2023). He holds an MBA with honors from University of Chicago’s Booth School of Business, a master’s degree in industrial engineering from the University of Cincinnati and a bachelor’s degree in mechanical engineering from Anna University, India. He also holds the Chartered Financial Analyst® designation.
Wesley Phoa is a solutions portfolio manager with 30 years of industry experience (as of 12/31/2023). He holds a PhD in pure mathematics from Trinity College at the University of Cambridge and a bachelor’s degree with honors from the Australian National University.
Yung Wang is a quantitative engineer with 14 years of industry experience as of 12/31/21. He holds an MBA from University of Chicago and a bachelor's degree in computer science from National Taiwan University.
Brett Hammond is a research leader with 27 years of industry experience as of 12/31/21. He holds a PhD from the Massachusetts Institute of Technology and a bachelor's degree in economics and political science from the University of California, Santa Cruz.