Evidence continues to support a flat glide path in retirement
In the context of target date funds (TDFs), the terminology of "to" and "through" refers to the asset allocation (or glide path) of a TDF after the target retirement date stated in the fund’s name has been reached. In a prior paper, Russell Investments coined the term "date debate" to describe whether glide paths should be "to" or "through."
This Russell Investments Viewpoint revisits the "date debate" with the following topics:
- The problem with typical (de-risking or “through”) glide path design
- Why a flat glide path makes more sense
- Debunking common arguments for de-risking in-retirement glide paths