Target-date funds are one of the fastest-growing segments of the retirement plan market, with more than $1 trillion in assets, but most plan sponsors don’t know if their employees understand what they are investing in or how their workers plan to use their money when they leave the plan and enter retirement.
In a survey of TDF investors, Vanguard found that a “healthy majority have a good understanding of how these things are structured and the philosophy behind them,” says John Croke, a senior product manager in the Vanguard portfolio review department.
