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RETIREMENT PLAN INVESTOR

Use your plan ID (available on your account statement) to determine which employer-sponsored retirement plan website to use:

IF YOUR PLAN ID BEGINS WITH IRK, BRK, 754, 1 OR 2

Visit americanfunds.com/retire

IF YOUR PLAN ID BEGINS WITH 34 OR 135

Visit myretirement.americanfunds.com

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AMERICAN FUNDS TARGET DATE RETIREMENT SERIES®

A distinctive glide path

A sophisticated approach, made simple

The Series holds meaningful amounts of equity near retirement to help build wealth. But it also changes the types of equities and bonds over time to help manage risk in an approach we call our glide path within a glide path.


We believe investors should hold different stocks as they age

Our Series reflects a belief that the types of stocks held, not just the amounts, can help offset age-specific risks participants face.

Top 10 largest equity holdings of the underlying funds in each vintage

Early career (2055 fund)

The vintage emphasizes funds with exposure to high-growth, low-yielding stocks for investors further from retirement.

This chart shows how the types of stocks the Series has exposure to shifts from more growth-oriented, low- or no-income stocks to more defensive, income-oriented stocks later in the glide path. For instance, the 2055 fund has exposure to Meta Platforms Inc. (which pays no dividend), while the 2015 fund has exposure to Phillip Morris International, which pays a dividend yield. The 2055 fund has a weighted average yield of 0.75%, while the 2015 fund has a weighted average yield of 1.97%.

In retirement (2020 fund)

The vintage emphasizes funds with exposure to dividend-paying stocks for investors in retirement who are more sensitive to market downturns.

This table presents the names of the 10 largest equity holdings in the 2020 vintage of the Series and their corresponding dividend yields. The yield figures are color-coded into three categories. For stocks yielding less than 1.5%, dividend yields are shaded dark blue, while those yielding 1.5% to 3% are shaded green and those yielding above 3% are shaded light blue. The largest holdings are Microsoft (1.06% yield), Broadcom (3.02%), UnitedHealth Group (1.21%), Philip Morris (4.98%), Pfizer (3.12%), Alphabet (no dividend), Home Depot (2.41%), AbbVie (3.49%), Raytheon (2.14%) and Comcast (3.03%). 7 of the 10 top holdings yield at least 1.5%. The overall weighted-average yield is 2.31%.

Sources: Capital Group, Morningstar. Top 10 largest equity holdings as of December 31, 2022. Weighted-average yields as of September 30, 2022. The weighted-average yield adjusts the yield of each stock by the stock’s weight within the Top 10 portfolio. The adjusted yields are then summed. When multiple share classes of a stock exist, the largest holding’s yield is shown. Holdings of the funds will change over time.


The freedom to adapt

Our Series features multi-asset and global strategies that empower portfolio managers of the underlying funds to use measured flexibility to pursue investment opportunities across geographies and asset classes. The views of these portfolio managers influence the Series’ asset mix.

Equity exposure (%) based on historical asset mix of underlying strategies

This is a line chart illustrating the proportion of assets in equity investments over time, from 45 years before retirement (at which time the individual is assumed to be 20 years of age) through retirement (assumed to be at age 65) and for 30 years following. The current equity allocation is depicted as a green line and the average as a black line. The range between the historical minimum and maximum equity allocation is shown as a shaded grey area; its width illustrates the flexibility underlying portfolio managers have to invest across asset classes in response to market conditions. The allocation to equity declines over time and particularly rapidly from about 15 years before retirement.

Geographic flexibility based on historical asset mix of underlying strategies

This is a line chart illustrating the proportion of assets in non-U.S. investments (equity and fixed income) over time, from 45 years before retirement (at which time the individual is assumed to be 20 years of age) through retirement (assumed to be at age 65) and for 30 years following. The current non-U.S. allocation is depicted as a green line and the average as a black line. The range between the historical minimum and maximum non-U.S. allocation is shown as a shaded grey area; its width illustrates the flexibility underlying portfolio managers have to invest across geographies in response to market conditions. Current allocations to non-U.S. investments are below historical averages.

Source: Capital Group. As of December 31, 2022. Average and ranges of exposure were calculated using the historical quarterly asset mix of each underlying fund since Series inception, based on the glide path as it existed on December 31, 2022. Although the data are based on the December 31, 2022, glide path, the Series’ glide path changed multiple times prior to that date. Therefore, movements in asset exposure shown in the chart reflect only the changes in the asset mix within the underlying funds from Series inception to December 31, 2022; the movements do not reflect the historical top-down changes to the glide path made over the life of the Series. The maximum and minimum values reflect the highest and lowest asset exposure based on the underlying funds’ historical asset mixes at each point of the December 31, 2022, glide path; the average reflects the average asset class exposure under the same parameters. Current asset mixes reflect underlying fund data and the glide path as of December 31, 2022.

UNDERLYING FUNDS

Solid building blocks

Our funds have delivered peer-beating results and held up well in down markets.

LOW FEES

Delivering value at a low cost

We encourage a focus not just on expenses but on value delivered to participants.

HOMEPAGE

Discover what sets our Series apart

Target date funds have a lot in common. But the American Funds Target Date Series takes a distinctive approach that has delivered uncommon investment outcomes and helped thousands of participants come closer to achieving their financial goals.

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Our team is ready to help you help participants.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.

Investments in mortgage-related securities involve additional risks, such as prepayment risk.

The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional securities, such as stocks and bonds.

Fund shares of U.S. Government Securities Fund are not guaranteed by the U.S. government.

The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings.

While not directly correlated to changes in interest rates, the values of inflation-linked bonds generally fluctuate in response to changes in real interest rates and may experience greater losses than other debt securities with similar durations.

Although the target date portfolios are managed for investors on a projected retirement date time frame, the allocation strategy does not guarantee that investors' retirement goals will be met. Investment professionals manage the portfolio, moving it from a more growth-oriented strategy to a more income-oriented focus as the target date gets closer. The target date is the year that corresponds roughly to the year in which an investor is assumed to retire and begin taking withdrawals. Investment professionals continue to manage each portfolio for approximately 30 years after it reaches its target date.

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Use of this website is intended for U.S. residents only. Use of this website and materials is also subject to approval by your home office.

American Funds Distributors, Inc.

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.

© 2024 Morningstar, Inc. All Rights Reserved. Some of 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, its content providers nor Capital Group are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Information is calculated by Morningstar. Due to differing calculation methods, the figures shown here may differ from those calculated by Capital Group.