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Target-date funds have gained in popularity over the past couple of years, as plan sponsors attempt to get employees to save more for retirement.

A white paper by Putnam Investments examined the target-date trend, pinpointing what plan sponsors need to understand about target-date funds before they jump into them with both feet. The research showed that target-date funds are expected to play an increasingly important role in workplace retirement plans. The survey also uncovered evidence that in evaluating target-date funds, plan sponsors tend to focus on performance and expense metrics rather than how the glide paths work.

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