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5 Low-Cost Target-Date Funds for 2026

Target-date funds are designed to age with the investor by automatically rebalancing the asset allocation over time.

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Head of Content, New Verticals

Chris Hutchison helped build NerdWallet's editorial operation and has directed coverage across banking, investing, taxes and insurance. He now leads a team exploring new verticals. Before joining NerdWallet, he was an editor and programmer at ESPN and an editor at the San Jose Mercury News.

A target-date fund is a "set it and forget it" retirement savings option that is often the default in a 401(k) plan, but you can also invest in one through a taxable brokerage account or an IRA.

These funds remove two headaches for investors: deciding on an asset mix and rebalancing those investments over time. Another advantage of target-date funds is that they encourage a long-term investing mindset, helping investors avoid overreacting to market volatility.

What is a target-date fund?

Target-date funds, also called life-cycle funds or target-retirement funds, are diversified mutual funds that automatically rebalance their asset allocation as you approach retirement (i.e., the "target date").

This generally means the fund invests more heavily in stocks when you're far from retirement and gradually shifts toward lower-risk investments as you get closer to retiring. The idea is to continually balance risk and returns to build wealth and protect a growing nest egg.

Most target-date funds have names that include target dates in five-year increments. This makes it easier to identify and choose funds with target dates close to your planned retirement.

Top target-date funds with low costs

Here are some popular target-date funds designed for investors planning to retire in 2035, 2045, 2055 or 2065. We selected funds open to new investors with low costs (no sales commissions and expense ratios of 1% or less) and minimum investments of $2,500 or less.

Tip: Not sure which target-date fund year might apply to you? Use our calculator to estimate your retirement year.

2035 target-date funds

Fund

Symbol

Expense Ratio

Vanguard Target Retirement 2035 Fund Investor Shares

VTTHX

0.08%

Fidelity Freedom Index 2035 Fund Investor Class

FIHFX

0.12%

Nuveen Lifecycle Index 2035 Fund Premier Class

TLYPX

0.25%

American Funds 2035 Target Date Retirement Fund Class R-5

REFTX

0.39%

T. Rowe Price Retirement 2035 Fund

TRRKX

0.58%

Source: Fund issuers. Data is current as of March 26, 2026, and is intended for informational purposes only, not for trading purposes.

2045 target-date funds

Fund

Symbol

Expense Ratio

Vanguard Target Retirement 2045 Fund Investor Shares

VTIVX

0.08%

Fidelity Freedom Index 2045 Fund Investor Class

FIOFX

0.12%

Nuveen Lifecycle Index 2045 Fund Premier Class

TLMPX

0.25%

American Funds 2045 Target Date Retirement Fund Class R-5

REHTX

0.42%

T. Rowe Price Retirement 2045 Fund

TRRKX

0.60%

Source: Fund issuers. Data is current as of March 26, 2026, and is intended for informational purposes only, not for trading purposes.

2055 target-date funds

Fund

Symbol

Expense Ratio

Vanguard Target Retirement 2055 Fund Investor Shares

VFFVX

0.08%

Fidelity Freedom Index 2055 Fund Investor Class

FDEWX

0.12%

Nuveen Lifecycle Index 2055 Fund Premier Class

TTIPX

0.25%

American Funds 2055 Target Date Retirement Fund Class R-5

REKTX

0.43%

T. Rowe Price Retirement 2055 Fund

TRRNX

0.63%

Source: Fund issuers. Data is current as of March 26, 2026, and is intended for informational purposes only, not for trading purposes.

2065 target-date funds

Fund

Symbol

Expense Ratio

Vanguard Target Retirement 2065 Fund Investor Shares

VLXVX

0.08%

Fidelity Freedom Index 2065 Fund Investor Class

FFIJX

0.12%

Nuveen Lifecycle Index 2065 Fund Premier Class

TFIPX

0.25%

American Funds 2065 Target Date Retirement Fund Class R-5

REOTX

0.44%

T. Rowe Price Retirement 2065 Fund

TRSJX

0.64%

Source: Fund issuers. Data is current as of March 26, 2026, and is intended for informational purposes only, not for trading purposes.

Estimate your target-date fund year

Target-date funds generally come in five-year increments. This estimator chooses a target date based on an assumed retirement age of 65; however, you may opt to retire earlier or later.

For example, if you want to take a more conservative approach (i.e., you think you might retire earlier), you can choose an earlier target date. Taking the opposite approach is also an option if you're comfortable holding riskier investments for longer.

How target-date funds work

A key feature of target-date funds is their “glide path,” or how the funds gradually shift from a higher allocation of riskier equity funds toward safer investments like bonds, eventually freezing your asset allocation at its most conservative mix to protect your nest egg.

For example, a target fund may begin with a heavy mix of domestic and global equity funds, accounting for 90% of the total investment. But by the target date, equity funds may make up only 30% of the total investment, and fixed-income investments (like bonds and short-term funds) may make up the rest. Some fund providers may offer a more sophisticated range of strategies and mixes as you glide toward your final asset allocation.

"To" vs. "through" target-date funds

An important question to ask when choosing a target-date fund is: Is this a “to” fund, in which the glide path freezes your asset allocation the year you plan to retire, or a “through” fund that continues the glide path for 10 years or more past retirement before freezing your asset allocation?

The philosophy of “through” funds is that life (hopefully) doesn’t stop at retirement. You still may have 20 years or more of living expenses, and the glide path toward safer investments should reflect that.

Different “through” target-date funds may extend the glide path 10, 15 or 20 years past retirement, so be sure to look into which kind of target-date fund is right for your retirement goals.

» Tips for investing in your 50s

How to invest in target-date funds

Through your 401(k). As mentioned, target-date funds are a common preset choice for a 401(k). If you have a 401(k) and never changed what's in it, there’s a good chance you already have a target-date fund.

Through a financial advisor or brokerage account. You can work with a qualified financial advisor to select a fund that’s best for you, or you can open a brokerage account and shop for target-date funds on your own.

Directly from the provider. You can purchase a target-date fund directly from Vanguard, Fidelity, T. Rowe Price or other providers, but your choices may be limited. The fund may require a minimum investment of $500 to $3,000 or more. However, some funds waive the minimum if you make monthly deposits to your account.

» How to invest $100,000

Brokerage firms

on Charles Schwab's website

on E*TRADE's website

on Vanguard's website

on Fidelity's website

Tips for evaluating a target-date fund

1. Check the fees

A mutual fund’s expense ratio is an annual fee expressed as a percentage of your investment. The higher the fees, the more costs can erode total returns. Fees often revolve around whether the fund leans on cheaper passive investing strategies or more costly actively managed accounts.

» What to know about active vs. passive investing

2. Learn about what the fund invests in

Two identically named 2050 target-date funds can have very different strategies for transitioning from equities to bonds over time. One fund’s asset allocation strategy may be too conservative or not conservative enough, depending on your appetite for risk.

This is also a good reason to crack open your 401(k) and see if there are other target-date funds on offer that are a better fit than the default choice.

3. Don't just forget about it

Review your fund's performance once a year and review other investments you hold. How do those assets and your target-date fund fit together? Are you double-dipping on asset classes, or even buying the same fund twice? Talking with a qualified financial advisor who can do an annual checkup of your total portfolio could help avoid these problems.

» See our list of the best financial advisors

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