Target-date funds may have a positive impact on participants’ investment results. One study shows that, on average, participants using employer-provided assistance such as target-date funds, managed accounts or online advice generated higher returns than participants who selected their own investments.
The study also showed participants using employer-provided assistance followed a glide path in which risk starts out higher and glides downward as retirement approaches. Participants selecting their own investments took on more risk and failed to adjust their risk exposure over time.
*Help in Defined Contribution Plans: 2006 – 2010, Financial Engines, Aon Hewitt
Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost.
Past performance is no guarantee of future results.
The opinions expressed are those of our investment professionals, and are no guarantee of the future performance of any American Century Investments® portfolio. This information is not intended to serve as investment advice; it is for educational purposes only.