Do It For Me
Many retirement investors don't have the time or desire to select and track their Plan investments, so this series of trusts is designed to meet the needs of these retirement investors.
Each Retirement Date Trust is made up of a number of other T. Rowe Price Collective Investment Trusts:
- Allocations are based on target year for each particular trust
- Retirement Date Trusts are designed to cover multiple asset classes and investment styles all in one option
- Participants pay a proportionate share of each underlying investment trust's expense ratio, but there is no additional charge for the asset allocation services
The trusts invest in a combination of T. Rowe Price stock and bond investment vehicles in pursuit of different risk and reward goals based on the specific retirement year (target date). The trusts' 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. Get more information about individual investment vehicles within each Retirement Date Trust by reviewing the trust's fact sheet.
Selecting the Right Option
Participants may decide to select a Retirement Date Trust 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
You can also see Net Asset Values for your investment choices.
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 Trust and may be used in conjunction with other available investment options.
Retirement date trusts 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), call the HELPLINE, or meet with your Account Executive.
Before investing, you should carefully consider the trust's investment objectives, risks, charges, and expenses. This and other information is contained in the fact sheet, which is available by calling 1-800-422-8463. Read it carefully before you invest.