Target-date retirement funds hit $4.8tn and face criticism over conservative strategies
Updated
Updated · MarketWatch · Apr 30
Target-date retirement funds hit $4.8tn and face criticism over conservative strategies
15 articles · Updated · MarketWatch · Apr 30
Morningstar said assets rose 20% in 2025, while advisers including Jesse Cramer argued many funds add bonds too early and can curb long-term retirement growth.
These funds are widely used in 401(k) plans and often serve as default investments, but critics say higher fees and conservative glide paths may leave younger savers with smaller nest eggs.
Providers including Fidelity have raised equity exposure, while Vanguard says its mix balances volatility, inflation and longevity risk as Americans live longer and need income for extended retirements.
What is the simple, expert-backed alternative to a target-date fund for maximizing your nest egg?
Is your 'set-it-and-forget-it' 401(k) secretly sacrificing massive growth for your retirement?