Mark Fawcett explains why NEST has embraced target date funds, which he says are inherently flexible when compared to 'mechanistic lifestyling'
With fewer and fewer workers knowing the exact date they'll retire, what's the point of target date funds? If savers are now going to continue investing through retirement, why de-risk as they approach state pension age? Retirement rarely happens on one day at the end of a working life anymore. It's more of a journey than an event. But this doesn't undermine the case for target date approaches to investment management, in our view. Rather we'd argue that target date funds represent an agile way to respond to savers' shifting needs in a world of changing retirement patterns and greater...
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