Target Date Funds Primer

April 2026

As defined benefit plans have become less common in the US, more of the responsibility for retirement outcomes has shifted to individual participants in defined contribution (DC) plans. Target date funds (TDFs) were built for this environment: they offer a professionally managed, diversified portfolio in a single investment vehicle and are frequently used as a plan’s default option. Target date funds are named for the year an investor expects to retire, with portfolios designed to evolve automatically as that date approaches.

This is the first in a series on target date funds. In subsequent pieces, we anticipate discussing the integration with fiduciary responsibilities, annuities, custom target date funds, private assets, recordkeeping, and artificial intelligence.