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Target-date funds may need to get more aggressive as retirements stretch

Reported · Written up by our desk · Fund Industry

MarketWatch is examining whether target-date funds, long used as default retirement investments in employer plans, are keeping up with changing longevity.

The outlet argues that as people live longer in retirement, the typical approach embedded in these funds may require a shift, potentially toward more aggressive positioning to help cover decades of spending.

The piece frames the issue as a growing concern for retirement readiness, centered on whether the glide paths investors rely on are still appropriate for longer time horizons.

MarketWatch highlights that the funds are designed around retirement timing, but the longer duration of retirement could change how much growth is needed over time.

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