Target Date Funds Primer

Meketa

Hannah Schriner, Alison Adams

Research

8 Pages

Meketa Investment Group explains why target date funds now dominate defined contribution plans and why similarly dated funds can still lead to different outcomes. In 2024, TDFs held 42% of plan assets, took 64% of contributions, and served 84% of participants when offered.

Key Takeaways

TDF Adoption Dominates: TDFs represented 42% of plan assets, 64% of plan contributions, and 84% of participant usage when offered in 2024.
Glide Paths Shifted: Average retirement horizons extended from 10 years in 2010 to 20 years in 2024, while starting career equity exposure rose from 85% to 92%.
Defaults Became Standard: Among plans using a QDIA, 98% chose a TDF, showing how central these products have become to retirement plan design.
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