Meanwhile, the John Hancock Preservation Blend and American Funds Target Date Retirement 2055 funds had lower average allocations — 80% and 84%, respectively, Morningstar said.
The idea that everyone in a five-year age cohort should have the same asset allocation, it's just not correct.
David Blanchett managing director and head of retirement research at PGIMOf course, TDFs can vary in many ways aside from asset allocation.
For example, some are known as "through" funds, which continue to get more conservative throughout retirement; others are "to" funds, whose stock-bond proportions stay steady in retirement.
Why asset allocation is more important for retireesPaying attention to asset allocation is particularly important for investors in or near retirement, Pacholok said.
Persons:
Lourdes Balduque, John Hancock, Morningstar, Rowe Price, that's, Megan Pacholok, David Blanchett, Pacholok
Organizations:
John, John Hancock Preservation, Morningstar, of America, Financial Industry Regulatory Authority
Locations:
BlackRock, TDFs