Investing with Tier One - T. Rowe Price Retirement Date Funds
Many retirement investors don't have the time or desire to select and track their Plan investments, so this series of funds is designed to meet the needs of these retirement investors.
Each Retirement Date Fund is made up of a number of other T. Rowe Price mutual funds. Some variations and options in the funds include:
- Allocations are based on target asset allocations for each particular fund
- Funds are designed to cover multiple asset classes and investment styles all in one fund
- Participants pay a proportionate share of each underlying fund's expense ratio, but there is no additional charge for the asset allocation services
The funds invest in a combination of T. Rowe Price stock and bond funds in pursuit of different risk and reward goals based on the specific retirement year (target date). The funds' target dates are designed to be appropriate for an investor who plans to retire on or near the target date selected when they would turn age 65. The T. Rowe Price Retirement Fund Prospectus (PDF) gives investors a summary of each fund along with basic information and policies for T. Rowe Price.
Fund Prospectus, and Additional Fund Information
Get more information about individual funds within each asset class by reviewing the fund's prospectus and fact sheet.
Many mutual fund companies pay reimbursements to the Plan for administrative functions they would normally perform themselves. Learn more about mutual fund reimbursements.
Selecting the Right Fund
Participants may decide to select a Retirement Date Fund using a target year other than the date they turn age 65 if they:
- Expect to retire or begin withdrawing funds at an age different than 65, or
- Wish to adjust for other anticipated retirement assets or income
|If you were born…||This fund might
be right for you…
|in 1988 or later||Retirement 2055 (PDF)|
|between 1983-1987||Retirement 2050 (PDF)|
|between 1978-1982||Retirement 2045 (PDF)|
|between 1973-1977||Retirement 2040 (PDF)|
|between 1968-1972||Retirement 2035 (PDF)|
|between 1963-1967||Retirement 2030 (PDF)|
|between 1958-1962||Retirement 2025 (PDF)|
|between 1953-1957||Retirement 2020 (PDF)|
|between 1948-1952||Retirement 2015 (PDF)|
In general, the later the retirement date selected, the higher the initial allocation will be to stock market investments and the lower allocation to fixed income investments.
Stock market investments have historically provided higher long-term returns than fixed income investments but have also been more volatile (risky). It is important to remember that the Retirement Date Funds are designed to re-allocate assets from stock market investments to less risky fixed income and cash investments as retirement approaches.
Known as a glide path, this philosophy believes that a younger investor can withstand more volatility in their investments and would benefit from the higher returns that stock market investments have provided over the longer term. This is also a period when regular contributions are being made and the volatility is somewhat mitigated by dollar cost averaging – buying shares at varying prices over time.
As you approach and reach retirement, you are generally more concerned with preserving principal but also need to consider some growth as a hedge against inflation. Therefore, the glide path continues even into retirement and maintains some allocation to stock market investments.
Although designed to be a stand-alone investment, participants may use more than one Retirement Date Fund and may be used in conjunction with other available investment options.
Like other funds, target date funds are subject to market risk and loss. Loss of principal may occur at any time, including before, at or after the target date. There is no guarantee that target date funds will provide enough income for retirement. Read more about the T. Rowe Price Retirement Date Funds.
Get the help you need
To see an overview of all Plan investment options, read the Guide to Investment Options (PDF), talk to the HELPLINE, or meet with your Account Executive.
Before investing, you should carefully consider the fund's investment objectives, risks, charges, and expenses. This and other information is contained in the fund prospectus, which is available by calling 1-800-422-8463. Read it carefully before you invest.