I used to work in a Japanese company based in the Philippines and we had this. I had the account for 2yrs but I closed it down bc I realized just this. So after that I started in a bank and had a mutual fund instead. This is very true.
Interesting take on target date funds. I might have to do some digging to see how my 401(k) is being allocated. I was getting almost 30% return average on it for a long time. Now, it's down to about 12%. :-/ That might just be the market though, and not how it's allocated. I'm not that old yet!