Target date investing in defined contribution (DC) plans has been one of the most important and successful innovations in the retirement industry. Over the last several years, plan sponsors and their advisors have been striving to get a better understanding of how these funds are constructed and how to evaluate the efficacy of various solutions.

This paper discusses seven of Russell Investments' core beliefs underpinning the construction of our target date solutions, including:

  1. Knowing when to take risk is critical as assets accumulate
  2. Flat glide paths are prudent to success in retirement
  3. Equity exposures should be globally oriented
  4. Real assets provide important diversification benefits
  5. There is a place for both active and passive management for different glide paths
  6. Dynamic management can improve risk control
  7. Open-architecture is superior to proprietary management
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