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Target-date funds may need to be more aggressive for lifetime retirement

MarketWatch notes the default retirement funds are designed for long horizons, but concerns are growing that their typical risk levels may not keep pace over decades.

Reported · Written up by our desk · Fund Industry

MarketWatch reports that target-date funds, which many Americans use as a default retirement choice, may need to be more aggressive to better support retirement savings across a lifetime.

The outlet frames the concern around the funds' ability to fund decades of retirement, given that they are built to adjust risk as the target date approaches.

According to MarketWatch, the discussion centers on whether the popular glide paths and investment exposures may be insufficient for achieving long-term retirement outcomes.

The report suggests investors may need to revisit how these funds balance risk and growth over extended time frames.

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