Target Retirement Date Funds

Overview

Target retirement date funds, which are also called target date or lifecycle funds, are one of the most important innovations in retirement savings. These funds provide a convenient way for a retirement plan participant to purchase a mix of asset classes, professionally designed and managed, that is rebalanced and becomes more conservative as the participant ages. As of June 30, 2021, approximately $1.8 trillion was invested in target date mutual funds.

ICI and its members have worked to enhance understanding of target date funds. This page provides information and resources on target date funds prepared by ICI. It includes FAQs, Five Principles to Enhance Understanding of Target Date Funds, links to ICI’s testimony on target date funds, and links to other relevant information. ICI will update this page as events unfold.

ICI Contact List

News & Publications

ICI Viewpoints

A Closer Look at the Facts Shows a More Optimistic Outlook for the US Retirement System

Employer plans and individual retirement accounts (IRAs) are an important source of income for all but the lowest-income retirees. Either directly or through a spouse, more than 70 percent of Americans over age 70 receive income from retirement plans. That share increases rapidly with...

March 11, 2025

News Release

Study Reveals 401(k) Plans Boost Employee Retirement Engagement and Contributions: New Research from ICI and ISS MI BrightScope

March 4, 2025—401(k) plans that use automatic enrollment mechanisms and/or employer contributions are critical to encourage workers to save and to invest for retirement, according to The BrightScope/ICI Defined Contribution Plan Profile: A Close Look at 401(k) Plans, 2022. More than one-third of large 401(k) plans have automatic enrollment, and nearly 90 percent make employer contributions.

March 4, 2025

ICI Viewpoints

Teachers and Nurses Deserve Access to the Same Investment Options as 401(k) Savers

February 10, 2025—Teachers, nurses, and millions of other public education and nonprofit workers are being denied the full range of retirement investment options that the private sector enjoys. In some cases, the exclusion can cost these workers in higher fees over time, lessening their ability to maximize their retirement savings.

February 10, 2025

News Release

Hands Off My 401(k): American Retirement Savers Appreciate Their Plans Just the Way They Are

January 30, 2025—According to new research published by the Investment Company Institute (ICI), Americans highly value their retirement plans. ICI’s research report “American Views on Defined Contribution Plan Saving, 2024” finds that almost three-quarters of Americans had favorable impressions of 401(k) and similar defined contribution (DC) plan accounts.

January 30, 2025