How T Rowe Price Retirement Funds Work
T. Rowe Price Retirement Funds, a Target Date asset allocation option, are designed to take you through retirement.
The asset mix of each Portfolio is based on a target date. This is the expected year in which participants in a Portfolio plan to retire and no longer make contributions. A team of asset allocation professionals adjusts each Portfolios make-up over time to ensure a noticeable and steady shift from equities to fixed income in the years leading to retirement.
The T. Rowe Price Retirement Funds are composed of actively managed funds and are managed to help retain your potential for growth, and aim to preserve the value of your assets at and after retirement.
As each Portfolio glides over time, its asset mix is adjusted. Looking at the image below:
- Greater emphasis on aiming to provide an income stream in your retirement years
- Actively managed T. Rowe Price funds with broad diversification
- The Funds invest in a mix of equities and bonds that gradually becomes more conservative as the target Retirement Date nears
- At the target Retirement Date, the Funds allocation to stocks is anticipated to be approximately 55% of its assets
- The Funds exposure to stocks will continue to decline until approximately 30 years after its target Retirement Date, at which its allocation to stocks will remain at approximately 20% and the remainder will be invested in bonds
How We Make Money
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
We’ve Been Guiding Investors Through Change For 80 Yearstogether We’ll Navigate This Market Too
1951 Business Goals
Mr. Price sets down goals emphasizing quality: A reputation for the highest character and soundest investment philosophy.
1962 Investment Philosophy
T. Rowe Price lays out an investment and business philosophy that continues to underpin the firm’s approach today.
Dot Com Bust
Subprime Scandal
Analyst Susan Troll “Duchess of Doom” helps T. Rowe Price avoid steep losses that plagued other firms.
Global Financial Crisis
A strong balance sheet helps T. Rowe Price weather a global downturn and continue to grow talent and build capabilities for clients.
2020 Global COVID-19 Pandemic
Associates swiftly transition to carrying on business remotely without losing a step and maintain all operations critical to research, investing and serving clients.
T. Rowe Price opens its doors.
Thomas Rowe Price, Jr. calms investors as war looms in Europe.
1951 Business Goals
Mr. Price sets down goals emphasizing quality: A reputation for the highest character and soundest investment philosophy.
1962 Investment Philosophy
T. Rowe Price lays out an investment and business philosophy that continues to underpin the firm’s approach today.
Powerful lessons are learned and incorporated into T. Rowe Price investment philosophy.
Dot Com Bust
Subprime Scandal
Analyst Susan Troll “Duchess of Doom” helps T. Rowe Price avoid steep losses that plagued other firms.
Global Financial Crisis
2020 Global COVID-19 Pandemic
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How We Approach Editorial Content
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investors point of view. We also respect individual opinionsthey represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.
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How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
- Verify your identity, personalize the content you receive, or create and administer your account.
- Provide specific products and services to you, such as portfolio management or data aggregation.
- Develop and improve features of our offerings.
To learn more about how we handle and protect your data, visit our privacy center.
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Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
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Notes & Data Providers
Stocks: Real-time U.S. stock quotes reflect trades reported through Nasdaq only comprehensive quotes and volume reflect trading in all markets and are delayed at least 15 minutes. International stock quotes are delayed as per exchange requirements. Fundamental company data and analyst estimates provided by FactSet. Copyright © FactSet Research Systems Inc. All rights reserved. Source: FactSet
Indexes: Index quotes may be real-time or delayed as per exchange requirements refer to time stamps for information on any delays. Source: FactSet
Data on U.S. Overview page represent trading in all U.S. markets and updates until 8 p.m. See Closing Diaries table for 4 p.m. closing data. Sources: FactSet, Dow Jones
Stock Movers: Gainers, decliners and most actives market activity tables are a combination of NYSE, Nasdaq, NYSE American and NYSE Arca listings. Sources: FactSet, Dow Jones
ETF Movers: Includes ETFs & ETNs with volume of at least 50,000. Sources: FactSet, Dow Jones
Bonds: Bond quotes are updated in real-time. Sources: FactSet, Tullett Prebon
Currencies: Currency quotes are updated in real-time. Sources: FactSet, Tullett Prebon
Cryptocurrencies: Cryptocurrency quotes are updated in real-time. Sources: CoinDesk , Kraken
Calendars and Economy: ‘Actual’ numbers are added to the table after economic reports are released. Source: Kantar Media
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Were Here To Help You Achieve Your Goalsfor Retirement And For Life
In today’s world of uncertainty and change, you may be feeling less confident in your financial future. Its in times like these that our experience and insights can help you keep your eye on the long term and confidently invest for the life you envision. Weve been guiding investors through all sorts of market events for over 80 years. And we can help you stay on track today.
Let us help you plan and invest for the future.
Questions? Call us at
3.7 million moms, dads, kids, friends, and neighbors.1
$1.68 trillion assets under management.2
3.7 million moms, dads, kids, friends, and neighbors.1
$1.68 trillion assets under management.2
Why Consider This Fund
- You want the opportunity to remain in the same portfolio after the target date is reached
- You want one-step diversification with exposure to domestic stocks, international stocks and fixed-income securities
- You’ve considered your risk tolerance and want your asset allocation to become more conservative over time, but still provide growth after your retirement date to protect against longevity risk
- You want an actively managed asset allocation portfolio investing in actively managed underlying funds
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