A. A Target-date Retirement Fund, by definition, adjusts its holdings automatically to fit people's retirement time, and beyond.
Many people expect, for example, the 2015 target-date fund, which is for people who retire in 2015, to be conservative as these people are entering retirement time. However, these people might be surprised to hear that most 2015 target date funds still hold quite significant percentage of stocks. For example, Fidelity's 2015 target-date fund has 55% stocks, so are Vanguard and T. Rowe Price's 2015 target-date funds all hold similar percentage of stocks.
The reason of such high stock weight? Because people's retirement years could stretch over 20 years or even longer. With such long investment horizon, in order to keep the purchasing power of retirement funds, you have to invest in stocks This will obviously lead to higher risks.
The bottom line, even for people in early retirement, don't focus on short-term market fluctuations, aim for the long term outcomes!