Strategy. The fund pursues its objective(s) by investing in a diversified portfolio of other T. Rowe Price equity and fixed income mutual funds that represent various asset classes and sectors. The fund is intended for retired investors who seek income and relative stability from bonds along with some capital appreciation potential from stocks. The funds neutral allocations, which are what T. Rowe Price considers broadly appropriate for investors during their retirement years, are 40% equity funds and 60% fixed income funds. These allocations are intended to reflect the need for reduced market risks, lower portfolio volatility, and an income stream throughout retirement. Although the fund is designed for investors already in retirement, you should be aware that it does not decrease … Show more… The fund pursues its objective(s) by investing in a diversified portfolio of other T. Rowe Price equity and fixed income mutual funds that represent various asset classes and sectors. The fund is intended for retired investors who seek income and relative stability from bonds along with some capital appreciation potential from stocks. The funds neutral allocations, which are what T. Rowe Price considers broadly appropriate for investors during their retirement years, are 40% equity funds and 60% fixed income funds. These allocations are intended to reflect the need for reduced market risks, lower portfolio volatility, and an income stream throughout retirement. Although the fund is designed for investors already in retirement, you should be aware that it does not decrease its equity holdings and become increasingly conservative over time. As such, you may want to consider a more conservative or more aggressive approach depending on your age and specific stage of retirement. The fund is designed to be part of an investors overall retirement strategy, but is not intended as a complete solution to an investors retirement needs. While the overall asset mix generally remains consistent over time, tactical decisions may be made by T. Rowe Price to overweight or underweight a particular asset class or sector based on its market outlook. The target allocations assigned to the broad asset classes (Equity and Fixed Income), which reflect any tactical decisions resulting from market outlook, are not expected to vary from the neutral allocations by more than plus or minus 5%. The target allocations and actual allocations may differ due to significant market movements or cash flows. The following table illustrates how the portfolio is generally expected to be allocated between the broad asset classes and the underlying T. Rowe Price mutual funds that are used to represent those asset classes and specific sectors. The fund invests in the Z Class of each of its underlying funds. T. Rowe Price is contractually obligated to waive and/or bear all of the Z Class expenses, with certain limited exceptions. The funds overall allocation to equity is represented by a diversified mix of U.S. and international equity funds that employ both growth and value investment approaches and consist of large-cap, mid-cap, and small-cap stocks. The funds overall allocation to fixed income is represented by a core fixed income component designed to have lower overall volatility and a diversifying fixed income component designed to respond to a variety of market conditions and improve risk adjusted returns. The information in the table represents the neutral allocations for the fund as of August 1, 2025. The numbers may not add to 100% due to rounding. Updated allocations between equity funds and fixed income funds, and actual allocations to each underlying T. Rowe Price mutual fund, are available through troweprice.com. T. Rowe Price may periodically rebalance or modify the asset mix of the underlying funds and change the underlying fund allocations. Retirement Balanced Fund Asset Class Sector(s) Neutral Allocation Underlying Fund(s) Equity 40.00 % Hedged Equity 4.00 % Hedged Equity Inflation Focused 2.00 Real Assets International Developed Markets 8.67 International Stock, International Value Equity, and/or Overseas Stock International Emerging Markets 1.54 Emerging Markets Discovery Stock and/or Emerging Markets Stock U.S. Large-Cap 19.34 Equity Index 500, Growth Stock, U.S. Equity Research, U.S. Large-Cap Core, and/or Value U.S. Mid-Cap 2.38 Mid-Cap Growth, Mid-Cap Index, and/or Mid-Cap Value U.S. Small-Cap 2.07 New Horizons, Small-Cap Index, Small-Cap Stock, and/or Small-Cap Value Fixed Income 60.01 Core Fixed Income 28.00 Dynamic Global Bond, International Bond (USD Hedged), and/or New Income Diversifying Fixed Income 32.01 Dynamic Credit, Emerging Markets Bond, Floating Rate, High Yield, Limited Duration Inflation Focused Bond, U.S. Treasury Long-Term Index, and/or U.S. Treasury Money Show less