Target date retirement series — American 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

This layer chart shows the glide path — the allocation of the mix of underlying funds over time — from age 20 to age 95. The five categories of underlying funds are: growth funds, growth-and-income funds, equity-income funds, balanced funds and fixed income funds. The chart shows that at age 20, the greatest allocation is to growth and growth-and-income funds (together, consisting of 85% of total assets), followed by balanced funds (10%) and fixed income funds (5%). As investors age and approach retirement, the allocation to growth and growth-and-income funds declines, and the allocations to equity-income funds, balanced funds and fixed-income funds increase. After retirement, the growth and growth-and-income funds continue to decline, while allocations to fixed income grow substantially. At retirement, growth funds have 6% of assets, growth-and-income funds have 24% of assets, equity-income funds have 13% of assets, balanced funds have 12% of assets and fixed income funds have 45%. The allocation to equity-income funds also grows gradually over the course of retirement. At age 95, there are no allocations to growth funds. Growth-and-income funds have 5% of assets, equity-income funds have 28% of assets, balanced funds have 7% of assets and fixed income funds have 60% of assets.

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

The target allocations shown are as of March 31, 2024, and are subject to the oversight committee's discretion. The investment adviser anticipates assets will be invested within a range that deviates no more than 10% above or below the allocations shown in the prospectus. Underlying funds may be added or removed during the year. Visit capitalgroup.com for current allocations.

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 Solutions Committee brings a diversity of experience and draws on the fundamental research and quantitative resources of the global Capital Group team.

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.

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

2070  |  2065  |  2060  |  2055  |  2050  |  2045  | 2040  |  2035  |  2030  |  2025  | 2020  |  2015  |  2010

The Target Date Solutions Committee is responsible for overseeing the target date series. Committee members average 29 years of investment industry experience as of January 1, 2024.

Related products

American Funds College Target Date Series®

American Funds® Retirement Income Portfolio Series

Other resources

Retirement planning calculator

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 portfolios are managed for investors on a projected retirement date time frame, the allocation strategy does not guarantee that investors' retirement goals will be met. Investment professionals manage the portfolio, moving it from a more growth-oriented strategy to a more income-oriented focus as the target date gets closer. The target date is the year that corresponds roughly to the year in which an investor is assumed to retire and begin taking withdrawals. Investment professionals continue to manage each portfolio for approximately 30 years after it reaches its target date.
This material does not constitute legal or tax advice. Investors should consult with their legal or tax advisors.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
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Capital Client Group, Inc.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.