Schwab adds retirement target date fund

San Francisco-based Charles Schwab Corporation today announced it is adding a 2050 target date fund to its collection of retirement funds.
The Schwab Managed Retirement Trust Funds are collective trust funds designed specifically for retirement plan participants and managed by The Charles Schwab Trust Company.
These target-date funds are tied to retirement dates and participants enroll in the fund based on the year they are planning to retire.
Currently, Schwab has target date funds for individuals retiring in 2010, 2020, 2030, and 2040.
A sixth fund, the Schwab Managed Retirement Trust Fund – Income, is designed to provide income during retirement.
“Target-date retirement funds fulfill a key role in helping individuals get to and through a comfortable retirement because they are easy to use, diversified and provide ready-made asset allocation,” said Jim McCool, executive vice president of Schwab Corporate & Retirement Services, in a statement.
He said that more than 60% of the company’s retirement plan clients offer target-date funds to their employees.