Vanguard is seeking to add a new product to its Target Retirement Funds in early 2012 and combine two funds with similar asset allocations. The series of low-cost, index-based funds will remain at 12. The new Vanguard Target Retirement 2060 Fund will focus on investors, who plan to retire and leave the workforce in or within a few years of 2060.

The Vanguard Target Retirement 2005 Fund, which is being closed to new investors right away, will be merged with the Vanguard Target Retirement Income Fund as their asset allocations become almost the same. The Target Retirement Funds are designed to make an allocation of 65 percent bonds, 30 percent stocks and 5 percent short-term reserves within seven years after their target date.

Click here for the release from Business Wire.