Strong investment returns and record flows of new money pushed total target-date fund assets over the $1 trillion threshold in 2017, according to Morningstar's annual Target-Date Fund Landscape report. The growth of TDFs since passage of the Pension Protection Act of 2006 is nothing short of "remarkable," write Morningstar analysts. Total assets were $1.11 trillion by the end of 2017, up from $880 billion in 2016, and $158 billion a decade ago. Strong market returns last year benefited TDF investors—average returns ranged from 8.8 percent to 21.3 percent, depending on fund vintages. But new flows of $70 billion were also a record, topping the previous high of $69 billion in 2015. An astonishing 95 percent of new flows were invested in passively managed TDFs, which Morningstar attributes, in part, to plan sponsors' demand for low-cost options. Asset flows to 2025 fund vintages were $13 billion, the most of any vintage, showing workers in their late 50s are stockpiling savings as the golden years draw closer, assuming a retirement age of 65. By contrast, 2060 vintages attracted a modest $2 billion in flows—younger workers make less money and have less to defer to TDFs, the study notes. Here are 10—of the many—insights into the target-date market from this year's report.  

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Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.