On or about February 16, 2024, this sub-account will begin investing in a new share class of the underlying fund. The Retirement I Fund Series will be reorganized into a newly launched identical series of T. Rowe Price Retirement Funds, Class I. T. Rowe Price Inc. has indicated that the purpose of this reorganization is to eliminate duplicative share classes of the same funds. There are no changes to the funds’ names, objectives, management team, holdings, asset allocation or expense ratios. The funds’ CUSIPs and ticker symbols will change, our websites will be updated with the new tickers in early March 2024.
Seeks the highest total return over time consistent with an emphasis on both capital growth and income.
The underlying fund pursues its objective by investing in a diversified portfolio of other T. Rowe Price stock and bond funds that represent various asset classes and sectors. The fund’s allocation between T. Rowe Price stock and bond funds will change over time in relation to its target retirement date. The fund is managed based on the specific retirement year (target date) included in its name and assumes a retirement age of 65. The target date refers to the approximate year an investor in the fund would plan to retire and likely stop making new investments in the fund. The fund is designed for an investor who anticipates retiring at or about the target date and who plans to withdraw the value of the account in the fund gradually after retirement. This fund may not be appropriate for an investor who plans to retire on or near the target date, but at an age well before or after age 65. At the target date, the fund’s allocation to stocks is anticipated to be approximately 55% of its assets. The fund’s exposure to stocks will continue to decline until approximately 30 years after its target date, when its allocation to stocks will remain fixed at approximately 20% of its assets. The remainder will be invested in fixed income securities. The allocations shown in the glide path are referred to as “neutral” allocations because they do not reflect any tactical decisions made by T. Rowe Price to overweight or underweight a particular asset class or sector based on its market outlook. The target allocations assigned to the broad asset classes (Stocks and Bonds), which reflect these strategic decisions resulting from market outlook, are not expected to vary from the neutral allocations set forth in the glide path by more than plus (+) or minus (-) five percentage (5%) points.
T. Rowe Price Retirement Funds, a Target Date asset allocation option, are designed to take you through retirement.
The asset mix of each Portfolio is based on a target date. This is the expected year in which participants in a Portfolio plan to retire and no longer make contributions. A team of asset allocation professionals adjusts each Portfolio’s make-up over time to ensure a noticeable and steady shift from equities to fixed income in the years leading to retirement.
The T. Rowe Price Retirement Funds are composed of actively managed funds and are managed to help retain your potential for growth, and aim to preserve the value of your assets at and after retirement.
As each Portfolio ‘glides’ over time, its asset mix is adjusted. Looking at the image below:
When making investment decisions, it’s also important to carefully consider your personal circumstances, current savings, monthly earnings and retirement lifestyle goals and risk profile. The principal value of your investment in any of our T. Rowe Price Retirement Funds, as well as your potential rate of return, are not guaranteed at any time, including at or after the target retirement date. Also, neither asset allocation nor diversification ensures a profit or protection against a loss. These Portfolios can suffer losses at any time (including near, at, or after the target retirement date), and there is no guarantee that any of them will provide adequate income at and through your retirement.
Performance** | 1 Year | 3 Year | 5 Year | 10 Year | ||
---|---|---|---|---|---|---|
Fund | T. Rowe Price Retirement 2050 | 23.37% | 5.61% | 10.65% | 9.14% | |
Index | S&P Target Date 2050 Indexi119 | 20.05% | 6.26% | 10.01% | 8.47% | |
Peer Group | Morningstar Target-Date 2050p53 | 20.84% | 5.53% | 9.77% | 8.17% |
Expense Ratio (as of 3-31-24)**** | ||||
---|---|---|---|---|
Expense Ratio**** | 0.45% | Cost Per $1,000 | $4.50 |
Top Holdings (as of 12-31-23)¤ | |
---|---|
T. Rowe Price Value Z | 15.1% |
T. Rowe Price Growth Stock Z | 15.1% |
T. Rowe Price Equity Index 500 Z | 9.9% |
T. Rowe Price US Large-Cap Core Z | 9.5% |
T. Rowe Price Overseas Stock Z | 8.0% |
T. Rowe Price International Value Eq Z | 7.0% |
T. Rowe Price International Stock Z | 6.7% |
T. Rowe Price Real Assets Z | 6.2% |
T. Rowe Price Mid-Cap Growth Z | 3.9% |
T. Rowe Price Mid-Cap Value Z | 3.5% |
Totals 84.9% of assets |
Number of Holdings | 25 |
Sharpe Ratio | 0.23 |
Beta | 1.01 (S&P Target Date 2050 TR USD) |
R² | 98.92 (S&P Target Date 2050 TR USD) |
Turnover (annualized)§ | 26.00 |
Net Assets | $15.5 billion |
Underlying fund expense ratios | • Gross* 0.45% • Net* 0.45% |
Market Cap (millions) | 79128.82 |
GT-P2459-TRX 5/24-48432