American Funds 2040 Target Date Retirement Fund

American Funds 2040 Target Date Retirement Fund®

Prospectus

Retirement Target Date

Overview

American Funds 2040 Target Date Retirement Fund may be appropriate for investors seeking:

A prudent way to save for retirement in a single fund
An investment that adjusts over time to meet their changing needs
A portfolio of American Funds designed for someone retiring around 2040

Objective

Depending on the proximity to its target date, which we define as the year that corresponds roughly to the year in which the investor expects to retire, the fund will seek to achieve the following objectives to varying degrees: growth, income and conservation of capital. The fund will increasingly emphasize income and conservation of capital by investing a greater portion of its assets in fixed income, equity-income and balanced funds as it approaches and passes its target date. In this way, the fund seeks to balance total return and stability over time.

Manager

The fund is managed by Capital Research and Management Company, one of the nation’s oldest, largest investment management firms. Since 1931, Capital Research has invested with a long-term focus based on thorough research and attention to risk.

Fund information

Began operations: 2/01/07
Variable investment inception date: 2/28/12
Net and gross expense ratios:* 1.80% / 1.80%
Investment expenses paid annually:† $18.00 for a $1,000 balance

*Each expense ratio is the sum of the program charges and the operating expenses of the underlying mutual fund. The operating expenses of the underlying mutual funds are for institutional share classes (for example, Class R-6 for the American Funds). The expense ratios are as of the fund’s prospectus and include the weighted average expenses of the underlying funds. Please see the funds’ most recent prospectus for details.
†You can estimate the investment expenses you’re paying annually by multiplying your balance in the fund by the net expense ratio.

Underlying funds

(as of 2/28/26; percentage of net assets; holdings are subject to change)

American Funds Global Balanced Fund^SM will be added to the glide path effective January 2, 2015.

Asset mix

(as of 2/28/26; percentage of net assets; holdings are subject to change)

Past results

The bar graph below shows the investment’s annual results and illustrates the fluctuations over the past 10 years. (The percentages are shown at unit value, updated annually as of 12/31.) If the results reflected deduction of the maximum sales charge of 5.75%, they would have been lower. Variable investment results are based upon a single investment at the beginning of the period being reported and retained throughout the period.

Investments are offered through a group annuity issued by Great-West Life & Annuity Insurance Company, Corporate Headquarters: Greenwood Village, CO; or, in New York, by Great-West Life & Annuity Insurance Company of New York, Home Office: White Plains, NY. The investment above is an account under the annuity that invest solely in shares of an underlying mutual fund (“variable investments”). The name of the variable investment reflects the underlying mutual fund. Results for each variable investment are stated after deduction of a variable asset charge of 1.44% for administrative, service and other fees (the “program charge”). The expense ratio for each variable investment is the sum of the program charge and the operating expense of the underlying mutual fund.

The investment does not require an up-front or deferred sales charge. Results of the variable investment prior to its inception date are hypothetical based on the underlying fund’s oldest share class without a sales charge, adjusted for typical additional expenses; results are hypothetical because the variable investment’s underlying fund was not offered in the group annuity prior to the variable investment’s inception date.

Figures shown are past results and are not predictive of future results. Current and future results may be lower or higher than those shown here. For more current information and month-end results, click here. Prices and results will vary, so you may lose money. However, assets in the Fixed Account are guaranteed by Great-West Life & Annuity Insurance Company, and payments on investments are subject to the insurer’s claims paying ability. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Unit Class 1

				Average annual total returns
			As of month-end February 28, 2026	As of quarter-end December 31, 2025
	Underlying fund inception date	Variable investment inception date	Year to date return	10 year	5 year	3 year	1 year	Variable investment lifetime
At unit value	2/01/07	2/28/12	3.48%	9.66%	7.97%	16.17%	17.80%	9.37%

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which the results would have been lower. Read details about how waivers and/or reimbursements affect the results for each American Fund.

Important information

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

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