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Our flagship Retirement Funds are designed to provide you with an age-appropriate diversified portfolio that you can carry to and through retirement—making them a one-stop approach to retirement investing. The Retirement Funds offer higher potential long-term growth and volatility by maintaining an emphasis on stocks before and after the target retirement date.
For a diversified portfolio that maintains a static allocation, consider the Retirement Balanced Fund. Diversification cannot assure a profit or protect against loss in a declining market.
The principal value of the Retirement Funds is not guaranteed at any time, including at or after the target date, which is the approximate year an investor plans to retire (assumed to be age 65) and likely stop making new investments in the fund. If an investor plans to retire significantly earlier or later than age 65, the funds may not be an appropriate investment even if the investor is retiring on or near the target date. The funds' allocations among a broad range of underlying T. Rowe Price stock and bond funds will (with the exception of the Retirement Balanced Fund) change over time. The funds (other than the Retirement Balanced Fund) emphasize potential capital appreciation during the early phases of retirement asset accumulation, balance the need for appreciation with the need for income as retirement approaches, and focus on supporting an income stream over a long-term postretirement withdrawal horizon. The funds are not designed for a lump-sum redemption at the target date and do not guarantee a particular level of income. The funds maintain a substantial allocation to equities both prior to and after the target date, which can result in greater volatility over shorter time horizons.
The allocation to asset classes and funds will change over time according to a predetermined "glide path." The glide path represents the shifting of asset classes over time and shows how the fund's asset mix becomes more conservative—both prior to and after retirement—as time elapses. The "neutral" allocations shown in the above glide path do not reflect any tactical decisions made by T. Rowe Price to overweight or underweight a particular asset class or sector based on its market outlook. The target allocations assigned to the broad asset classes (stocks and bonds), which reflect these tactical decisions, are not expected to vary from the neutral allocations set forth in the glide path by more than plus (+) or minus (-) five percentage points (5%). While the funds do not guarantee a level of income, they continue to serve as postretirement investment vehicles with allocations designed to provide an income stream through retirement.
*20 of our 36 Retirement Funds had a 10-year track record as of 6/30/16 (includes all share classes). All 20 of these 20 funds (100%) beat their Lipper averages for the 10-year period. 8 of 36 (22.22%), 36 of 36, and 36 of 36 of the Retirement Funds outperformed their Lipper average for the 1-, 3-, and 5-year periods ended 6/30/16, respectively. Calculations are based on cumulative total return. Not all funds outperformed for all periods. (Source for data: