Target Date Solutions

Important Information  

*Combined target date portfolios include assets managed by T. Rowe Price Associates, Inc. and its investment advisory affiliates as of 31 March 2024. T. Rowe Price Trust Company, as trustee for the T. Rowe Price Common Trust Funds (“Trusts”), has retained the services of T. Rowe Price Associates, Inc. and/or its investment advisory affiliates to assist it in the investment of assets of the Trusts. Figures above include Trusts’ assets. 

¹Average was time weighted based on the percentage of total rolling performance periods provided by each Retirement Fund. 

Analysis by T. Rowe Price. Source: Morningstar. The target date funds included in the combined portfolios were (1) defined as passive by Morningstar in its most recent annual Target‐Date Strategy Landscape report, (2) open and available to investors as of 12/31/23, and (3) with Morningstar universe sharing the same target date as each Retirement Fund. Combined portfolios were equally weighted and based on the oldest share class of each competing passive target date fund. The Retirement 2005 Fund was excluded from the study, as it had a limited number of passive peer constituents in the Morningstar universe; the Retirement 2060 and 2065 Funds were excluded due to lack of a 10-year track record. 

Although in the same category, there may be material differences among target date funds, including fees, expenses, and the portfolio mix of investments. Active investing may have higher costs than passive investing and may underperform the broad market or passive peers with similar objectives. Passive investing may lag the performance of actively managed peers as holdings are not reallocated based on changes in market conditions or outlooks on specific securities. Results for other time periods will differ. 

The T. Rowe Price target date trusts, and their underlying trusts (the Trusts) are not mutual funds; rather the Trusts are operated and maintained so as to qualify for exemption from registration as mutual funds pursuant to Section 3(c)(11) of the Investment Company Act of 1940, as amended. The Trusts are established by T. Rowe Price Trust Company under Maryland banking law, and their units are exempt from registration under the Securities Act of 1933. Investments in the Trusts are not deposits or obligations of, or guaranteed by, the U.S. government or its agencies or T. Rowe Price Trust Company and are subject to investment risks, including possible loss of principal. 

All investments are subject to market risk, including the possible loss of principal. The principal value of the target date funds is not guaranteed at any time, including, if applicable, at or after the target date, which is the approximate year an investor plans to retire (assumed to be age 65). Investments in other funds: The fund bears the risk that its underlying funds will fail to successfully employ their investment strategies. One or more underlying fund's underperformance or failure to meet its investment objective(s) as intended could cause the fund to underperform similarly managed funds. Interest rates: A rise in interest rates typically causes the price of a fixed rate debt instrument to fall and its yield to rise. Conversely, a decline in interest rates typically causes the price of a fixed rate debt instrument to rise and the yield to fall. International investing: Non-U.S. securities tend to be more volatile and have lower overall liquidity than investments in U.S. securities and may lose value because of adverse local, political, social, or economic developments overseas, or due to changes in the exchange rates between foreign currencies and the U.S. dollar. Emerging markets: Investments in emerging market countries are subject to greater risk and overall volatility than investments in the U.S. and other developed markets. See the prospectus for more detail on the fund's principal risks. 

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute. 

Important Information About the Morningstar Ratings 

The Morningstar Medalist Rating^TM is the summary expression of Morningstar’s forward-looking analysis of investment strategies as offered via specific vehicles using a rating scale of Gold, Silver, Bronze, Neutral, and Negative. The Medalist Ratings indicate which investments Morningstar believes are likely to outperform a relevant index or peer group average on a risk-adjusted basis over time. Investment products are evaluated on three key pillars (People, Parent, and Process) which, when coupled with a fee assessment, forms the basis for Morningstar’s conviction in those products’ investment merits and determines the Medalist Rating they’re assigned. Pillar ratings take the form of Low, Below Average, Average, Above Average, and High. Pillars may be evaluated via an analyst’s qualitative assessment (either directly to a vehicle the analyst covers or indirectly when the pillar ratings of a covered vehicle are mapped to a related uncovered vehicle) or using algorithmic techniques. Vehicles are sorted by their expected performance into rating groups defined by their Morningstar Category and their active or passive status. When analysts directly cover a vehicle, they assign the three pillar ratings based on their qualitative assessment, subject to the oversight of the Analyst Rating Committee, and monitor and reevaluate them at least every 14 months. When the vehicles are covered either indirectly by analysts or by algorithm, the ratings are assigned monthly. For more detailed information about these ratings, including their methodology, please go to global.morningstar.com/managerdisclosures/. 

The Morningstar Medalist Ratings are not statements of fact, nor are they credit or risk ratings. The Morningstar Medalist Rating (i) should not be used as the sole basis in evaluating an investment product, (ii) involves unknown risks and uncertainties which may cause expectations not to occur or to differ significantly from what was expected, (iii) are not guaranteed to be based on complete or accurate assumptions or models when determined algorithmically, (iv) involve the risk that the return target will not be met due to such things as unforeseen changes in management, technology, economic development, interest rate development, operating and/or material costs, competitive pressure, supervisory law, exchange rate, tax rates, exchange rate changes, and/or changes in political and social conditions, and (v) should not be considered an offer or solicitation to buy or sell the investment product. A change in the fundamental factors underlying the Morningstar Medalist Rating can mean that the rating is subsequently no longer accurate. 

^©2024 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

The above graphic shows a circular chart and bar chart demonstrating the amount and frequency with which T. Rowe Price Retirement Funds delivered better returns than passive peer funds over 10-year rolling monthly periods since their inceptions through 12/31/23. The circular chart shows that the Retirement Funds delivered better returns in 100% of the 10-year rolling monthly periods analyzed. The bar chart shows 11 bars displaying the average additional annual return delivered by each of 10 Retirement Funds, plus the average of all 10 funds. The Retirement Funds are listed by their specific target retirement year.  The average additional annual return for each Retirement Fund is listed as follows: 2010: 1.97%; 2015: 1.03%; 2020: 1.68%; 2025: 1.18%; 2030: 1.60%; 2035: 0.99%; 2040: 1.28%; 2045: 0.84%; 2050: 0.83%; 2055: 0.64%; total average of additional returns: 1.28%. All results are shown after fees and expenses.

These glide paths outline how the mix of stocks, bonds, and other investments adjust over time to help savers achieve their desired retirement outcomes. Both our Retirement and Target glide paths emphasize growth during the early phases of retirement saving and become more conservative over time. The Retirement glide path is focused on delivering the full value of active management to grow retirement savings. At 30 or more years before retirement (assumed to be age 65), the Retirement glide path holds a 98% allocation to equity, which decreases to 55% at retirement and then to 30% at 30 years past retirement, where it remains steady. The Target glide path, which is focused on delivering the full value of active management and managing volatility around retirement, holds a 98% allocation to equity until 35 years before retirement, then decreases to 42.5% at retirement and to 30% at 30 years past retirement, where it remains steady.

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