Thanks to the fact that many are embracing target-date funds, Americans are on the right track with their retirement savings, according to a study by Vanguard.

According to the study, 16% of savers are enrolled in a single target-date fund. In the last 20 months, the target-date fund business has come under heavy fire for having too much exposure to riskier assets as the funds approached the distribution phase. During 2008, a lot of target-date funds sustained heavy losses, which shocked many investors who expected to have a more conservative portfolio during retirement.

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