Charles Schwab has launched a fund with a target retirement date of 2050, bringing now to five its total lineup of target-date funds tied to 2010, 2020, 2030, 2040 and 2050. Rounding out the family is the Schwab Managed Retirement Trust Fund—Income.
“Target-date retirement funds fulfill a key role in helping individuals get to and through a comfortable retirement because they are easy to use, diversified and provide ready-made asset allocation,” said Jim McCool, executive vice president of Schwab corporate and retirement services. “More than 60% of our retirement plan clients offer target-date funds to their employees, and that number continues to grow. Now that the Pension Protection Act has become law, employers are rapidly embracing automatic retirement plan features, including using target-date funds as default investments for their employees."