A new survey by Voya Investment Management finds that participants who invest in target date funds (TDFs) feel significantly more confident about their retirement savings than their peers who are not invested in TDFs. When asked whether investing in a TDF makes them feel more confident about making good investment decisions, 95% of employed TDF investors said yes, including 39% who strongly agreed. Among those who don't invest in TDFs, total agreement dropped to 75%, with only 14% strongly agreeing.
The survey found that 71% of employed TDF investors said they feel confident that they'll reach their retirement goals, compared to 58% of non-TDF investors. Employed TDF investors also report less stress - more than 90% said that investing in a TDF helps reduce the stress of retirement planning. Among those who don't use TDFs, 73% said the same.
Among participants with access to a TDF, 83% of employees and 86% of retirees reported that they chose to invest in it. The top reasons offered for their TDF investment decision include: professional management, ease of use, built-in diversification, and ongoing rebalancing.
Sources:
https://individuals.voya.com/insights/investment-insights/ready-set-retire-how-target-date-funds-amplify-participant-confidence
https://www.napa-net.org/news/2025/11/target-date-funds-continue-strong-growth/
https://www.napa-net.org/news/2025/4/tdfs-hit-major-milestone-exceeding-expectations-morningstar/
Article courtesy of: RPAG
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