Revolutionizing Retirement Planning: Optimal Allocation for Maximum Pension Benefits
Target-date funds are a type of investment that helps people save for retirement by adjusting the mix of assets based on their age. The goal of this study was to understand how to best design these funds. Researchers found that the amount of risky investments in a target-date fund should change over time and depend on market conditions and individual preferences. This information can help improve how target-date funds are created for the financial industry.