Workers hold more stocks in their retirement accounts — but do they know the risk?

Core Insights - Target-date funds have provided significant benefits to many investors, particularly in terms of simplifying retirement planning and investment strategies [1] - However, these funds are subject to substantial volatility, which can impact investor returns, especially during market downturns [1] Group 1: Benefits of Target-Date Funds - Target-date funds are designed to automatically adjust the asset allocation as the target date approaches, making them appealing for retirement savers [1] - They offer a diversified investment approach, which can help mitigate risks associated with individual stock picking [1] Group 2: Volatility Concerns - The volatility of target-date funds can be considerable, with some funds experiencing significant fluctuations in value [1] - Investors may face challenges during market downturns, as the funds may not perform as expected, leading to potential losses [1]