From the Field
Building next-generation target date strategies through personalization
Technology has opened up new opportunities to personalize target date strategies.
Kobby Aboagye, Quantitative Investment Analyst
Sébastien Page, Head of Global Multi‑Asset and Chief Investment Officer
Louisa Schafer, Senior Quantitative Investment Analyst
James Tzitzouris, Director of Research, Retirement
Key Insights
  • Advances in recordkeeping technology have created opportunities for greater personalization of target date strategies to reflect the needs and preferences of individual investors.
  • In this paper, we introduce a utility‑based glide path model that expands on the traditional target date approach to make a life‑cycle investing strategy more dynamic and personalized.
  • Our analysis suggests these improvements could support substantial potential gains in risk‑adjusted retirement spending, especially when a dynamic spending rule is included.

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Call 1-800-225-5132 to request a prospectus or summary prospectus; each includes investment objectives, risks, fees, expenses, and other information you should read and consider carefully before investing.

This material is provided for informational purposes only and is not intended to be investment advice or a recommendation to take any particular investment action. The material does not constitute or undertake to give advice of any nature, including fiduciary investment advice, nor is it intended to serve as the primary basis for an investment decision. Prospective investors are recommended to seek independent legal, financial and tax advice before making any investment decision.

The views contained herein are those of the authors as of May 2024 and are subject to change without notice; these views may differ from those of other T. Rowe Price associates.

This information is not intended to reflect a current or past recommendation concerning investments, investment strategies, or account types, advice of any kind, or a solicitation of an offer to buy or sell any securities or investment services. The opinions and commentary provided do not take into account the investment objectives or financial situation of any particular investor or class of investor. Please consider your own circumstances before making an investment decision.

Information contained herein is based upon sources we consider to be reliable; we do not, however, guarantee its accuracy.

Past performance is not a reliable indicator of future performance. All investments are subject to market risk, including the possible loss of principal. Risks: The principal value of target date strategies is not guaranteed at any time, including at or after the target date, which is the approximate date when investors plan to retire (assumed to be age 65). A particular level of income is not guaranteed. All charts and tables are shown for illustrative purposes only.

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