Target Date Funds and Retirement Savings

This document is about a study conducted by Deloitte Financial Advisory Services LLP and Advanced Analytical Consulting Group for the U.S. Department of Labor to examine how target date funds and other asset allocation strategies can affect the accumulation of retirement wealth. The study uses a micro-simulation model to analyze the distribution of defined contribution pension benefits under different investment scenarios. The results suggest that target date funds generally outperform debt-only investment styles, but all-equity investment strategies tend to outperform target date funds in most scenarios, although they also carry more risk.