American Funds 2020 Target Date Retirement Fund®

Share Class A

Retirement Target Date 
 fund Retirement Target Date

American Funds 2020 Target Date Retirement Fund may be appropriate for investors seeking:

  • A prudent way to save for retirement in a single fund
  • An investment that adjusts over time to meet their changing needs
  • A portfolio of American Funds designed for someone retiring around 2020


Depending on the proximity to its target date, which we define as the year that corresponds roughly to the year in which the investor expects to retire, the fund will seek to achieve the following objectives to varying degrees: growth, income and conservation of capital. The fund will increasingly emphasize income and conservation of capital by investing a greater portion of its assets in fixed income, equity-income and balanced funds as it continues past its target date. In this way, the fund seeks to balance total return and stability over time.


The fund is managed by Capital Research and Management Company, one of the nation’s oldest, largest investment management firms. Since 1931, Capital Research has invested with a long-term focus based on thorough research and attention to risk.

Fund information
  • Began operations: 2/01/07
  • Expense ratio:* 0.64%
  • Investment expenses paid annually:† $6.40 for a $1,000 balance
  • Ticker symbol: AACTX
Underlying funds

American Funds Global Balanced FundSM will be added to the glide path effective January 2, 2015.

fund holdings
Past results

Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown here. For more current information and month-end results, click here. Share price and return will vary, so you may lose money. Investing for short periods makes losses more likely.  

Average annual total returns through 6/30/24
  Latest10 years Latest5 years Latest3 years Latestyear
At net asset value 5.30% 5.45% 1.85% 9.76%
At maximum offering price
(Class A shares, with 5.75% maximum sales charge)
4.68% 4.22% -0.14% 3.42%


Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which the results would have been lower. Read details about how waivers and/or reimbursements affect the results for each fund.

In applying any particular asset allocation model to your own individual situation, you should consider your other assets, income and investments. For example, in addition to your retirement plan investments, you should consider any investments (including those in an Individual Retirement Account) and savings accounts.

Allocations may not achieve investment objectives. The portfolios’ risks are related to the risks of the underlying funds as described herein, in proportion to their allocations.

Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries. Investing in smaller companies also involves additional risks, and small-company stocks can fluctuate in price more than larger company stocks.

Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. The return of principal in bond funds is not guaranteed. Bond funds have the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the fund.

Fund shares of U.S. Government Securities Fund are not guaranteed by the U.S. government.

While not directly correlated to changes in interest rates, the values of inflation linked bonds generally fluctuate in response to changes in real interest rates and may experience greater losses than other debt securities with similar durations.

Although the fund is managed for investors on a projected retirement date time frame, the fund’s allocation strategy does not guarantee that their retirement goals will be met. American Funds investment professionals actively manage the fund’s portfolio, moving it from a more growth-oriented strategy to a more income-oriented focus as the fund gets closer to its target date.

The target date is the year in which an investor is assumed to retire and begin taking withdrawals. Investment professionals continue to manage each fund for 30 years after it reaches its target date.

Underlying funds and their allocation percentages are subject to the oversight committee’s discretion and will evolve over time. Underlying funds may be added or removed during the year.

Fund results and expense ratio information listed above apply to Class A shares only. The results and expense ratio information for the investments in your plan may differ.

SIMPLE IRA and SEP plans only:
There is no sales charge on Class A shares for plans with over $1 million invested in American Funds.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from your plan’s financial professional or downloaded and should be read carefully before investing. You can find a link to the prospectus at the top of the page.

Use of this website is intended for U.S. residents only.

On or around July 1, 2024, American Funds Distributors, Inc. will be renamed Capital Client Group, Inc.