Vanguard has filed with the SEC to offer the Vanguard Target 2060 Retirement Fund for those currently 18 to 20 years old, and early next year will merge the Vanguard Target Retirement 2005 Fund and the Vanguard Target Retirement Income Fund, as their allocations have become nearly identical.

All of Vanguard’s Target Retirement Funds reach an allocation of 65% bonds, 30% stocks and 5% short-term reserves within seven years of their target date.

“The availability of a comprehensive lineup of Target Retirement Funds is important to our investors, particularly our retirement plan clients who want these funds available for every age group of their employee population,” said Vanguard CEO Bill McNabb. “The addition of the 2060 Fund meets the needs of young investors just entering the workforce. Understandably, they may not yet be thinking about retirement savings, but even setting aside a small amount now in a low-cost, balanced portfolio can make a big difference in their future financial security.”

-- This article first appeared on Money Management Executive.