In an analysis of target-date fund performance through the 2008-2009 financial crisis, MFS found that funds designed to serve investors to the date of retirement outperformed those designed to continue serving investors through their retirement. While the more-conservative ‘to retirement’ funds suffered average losses of 19.8 percent during the time period, more aggressive funds ‘through retirement’ funds had an average loss of 27.2 percent.
The study surveyed 606 plan sponsors and 313 retirement plan-focused advisors who work with 401(k) and 403(b) plans from Sept. 8 to Oct. 2, 2015.