Default Investment Funds for Retirement Plans
September 2009
Whether your retirement is a long way off or just around the corner, it's never too early or too late to start saving. While you may already be participating in one of Penn's retirement plan options, have you also decided where you want your money invested?
Whether it simply slipped your mind or you were overwhelmed by the number of choices available, money put in a retirement account with no investment selection is placed in a default investment fund where it can begin earning interest. The appropriate combination of funds is selected based on your age and projected retirement date. They'll automatically change over time as you get closer to retirement age, adjusting to an investment mix that should be more appropriate for your needs at different stages of life.
Penn's default retirement accounts are the TIAA-CREF Lifecycle Fund and the Vanguard Target Retirement Fund. If you're participating with Vanguard, but didn’t elect any specific funds, your money will be invested in the Vanguard Target Fund. The TIAA-CREF Lifecycle Fund will be the default fund for everyone else.
Keep in mind that you can change your investment selection at any time simply by contacting your investment provider. You're encouraged to make the choices that are best for you when it comes to saving for your retirement. Personalized counseling and group information sessions are also available to help you make decisions about your own portfolio. Visit the retirement counseling website to schedule an appointment. For more information on default investment funds, as well as additional retirement and financial planning resources, visit the Human Resources retirement website. You can also contact a representative at TIAA-CREF or Vanguard directly.
TIAA-CREF: 1-800-842-2010
Vanguard: 1-800-662-0106 (ext. 14500)