Press release
T. Rowe Price Announces Next Evolution Of Target Date Retirement Products With Eye To Improved Retirement Outcomes
Adjustments to some elements of T. Rowe Price target date lineup address increasing investor and plan sponsor focus on challenges of longevity and investing
About this update from T. Rowe Price Group, Inc.
[{"type":"text","content":"Adjustments to some elements of T. Rowe Price target date lineup address increasing investor and plan sponsor focus on challenges of longevity and investing risks, seeking balance between growth and preservation of capital to help improve retirement readiness\n Over two years, equity allocations will be increased early in the accumulation years and post-retirement, but no changes will be made to equity allocations at the retirement date\n As a result of a new unitary fee structure, none of the firm's target date portfolios will experience an increase in expense ratios and some will see their expense ratios decrease\n\n\nBALTIMORE, Feb. 13, 2020 /PRNewswire/ --\nNEWS\nT. Rowe Price Group, Inc. (NASDAQ-GS: TROW), a global investment management organization and a market leader in target date investing, today announced the next evolution to its target date retirement product lineup. Based on extensive proprietary research, T. Rowe Price's enhancements to its target date portfolios are designed to help improve retirement outcomes and address the headwinds investors face in achieving retirement security, including longevity risk, inflation risk, and market risk.\nOver a two-year period, T. Rowe Price will gradually increase equity exposure in the Retirement and Target portfolios' glide paths early in the accumulation years and post-retirement and add emerging markets and U.S. large-cap core equity strategies to further diversify the underlying investments. \n\"As leaders in target date investing, T. Rowe Price understands the importance of retirement to our investors. Our Retirement Funds were among the first in the industry to recognize the need to focus on supporting lifetime income with a higher equity allocation,\" said Wyatt Lee, portfolio manager and head of Target Date Strategies, Multi-Asset Division. \"These enhancements are based on extensive proprietary research, including our insights into retirement readiness and the headwinds investors face in achieving retirement security, the continued evolution of plan sponsor objectives, and meaningful advancements in our capabilities to model the retirement lifecycle problem. They reinforce our long-standing belief in the need for sufficient growth to help investors achieve their long-term retirement goals.\"\nGlide Path Adjustments \nThe glide path shifts are designed to help deliv...