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 funds allocations among underlying T. Rowe Price mutual funds will change over time in relation to the funds target retirement date. The fund is managed based on the specific retirement year (target date 2020) included in its name and assumes a retirement age of 65. The target date refers to the approximate year an investor in the fund would plan to retire and likely stop making new investments in the fund. The fund is designed for an investor who retired at or about the target date and who plans to … 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 funds allocations among underlying T. Rowe Price mutual funds will change over time in relation to the funds target retirement date. The fund is managed based on the specific retirement year (target date 2020) included in its name and assumes a retirement age of 65. The target date refers to the approximate year an investor in the fund would plan to retire and likely stop making new investments in the fund. The fund is designed for an investor who retired at or about the target date and who plans to withdraw the value of the account in the fund gradually after retirement. However, if an investor retires earlier or later than age 65, the fund may not be an appropriate investment even if the investor retires on or near the funds target date. Over time, the funds allocations to the broad asset classes (Equity and Fixed Income), and to the sectors and underlying funds used to represent those asset classes, will change according to a predetermined glide path shown in the following chart (the left axis indicates the overall neutral allocation to equity funds with the remainder of the allocation to fixed income funds). Equity allocations generally consist of investments in underlying funds that focus on stocks, and fixed income allocations generally consist of investments in underlying funds that focus on bonds and other debt instruments. The glide path represents the shifting of asset classes over time and shows how the funds asset mix becomes more conservativeboth prior to and after retirementas time elapses. This reflects the need for reduced market risks as retirement approaches and the need for lower portfolio volatility after retiring. Although the glide path is meant to dampen the funds potential volatility as retirement approaches, the fund is not designed for a lump sum redemption at the retirement date. The fund pursues an asset allocation strategy that promotes asset accumulation prior to retirement, but it is intended to also serve as a post-retirement investment vehicle with allocations designed to support an income stream made up of regular withdrawals throughout retirement along with some portfolio growth that exceeds inflation. After the target date, the fund is designed to balance longevity and inflation risks along with the need for some income, although it does not guarantee a particular level of income. TARGET FUNDS At the target date, the glide path provides for a neutral allocation to equity of 42.5%. The funds overall exposure to equity will continue to decline until approximately 30 years after its target date, when its neutral allocations to equity and fixed income will remain unchanged. There are no maturity restrictions within the funds overall allocation to fixed income, although the underlying fixed income funds in which the fund invests may impose specific limits on maturity or credit quality. The allocations are referred to as neutral allocations because they do not reflect any tactical decisions 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 set forth in the glide path 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 underlying funds that do not charge a management fee or in Z Class shares of an underlying fund when it is available. 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. Target 2020 Fund Asset Class Sector(s) Neutral Allocation Underlying Fund(s) Equity 38.01 % Hedged Equity 3.80 % Hedged Equity Inflation Focused 1.90 Real Assets International Developed Markets 8.25 International Stock, International Value Equity, and/or Overseas Stock International Emerging Markets 1.46 Emerging Markets Discovery Stock and/or Emerging Markets Stock U.S. Large-Cap 18.36 Equity Index 500, Growth Stock, U.S. Large-Cap Core, and/or Value U.S. Mid-Cap 2.26 Mid-Cap Growth, Mid-Cap Index, and/or Mid-Cap Value U.S. Small-Cap 1.98 New Horizons, Small-Cap Index, Small-Cap Stock, and/or Small-Cap Value Fixed Income 62.01 Core Fixed Income 29.40 Dynamic Global Bond, International Bond (USD Hedged), and/or New Income Diversifying Fixed Income 32.61 Dynamic Credit, Emerging Markets Bond, Floating Rate, High Yield, Limited Duration Inflation Focused Bond, and/or U.S. Treasury Long-Term Index Show less