<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the Kemper
Retirement Fund - Series II Annual Report for the fiscal year ended 7/31/2000
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000854905
<NAME> KEMPER TARGET EQUITY SERIES
<SERIES>
<NUMBER> 002
<NAME> KEMPER RETIREMENT FUND SERIES II
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUL-31-2000
<PERIOD-START> AUG-01-1999
<PERIOD-END> JUL-31-2000
<INVESTMENTS-AT-COST> 118,467
<INVESTMENTS-AT-VALUE> 137,871
<RECEIVABLES> 400
<ASSETS-OTHER> 1
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 138,271
<PAYABLE-FOR-SECURITIES> 479
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 891
<TOTAL-LIABILITIES> 1,370
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 114,940
<SHARES-COMMON-STOCK> 11,489
<SHARES-COMMON-PRIOR> 12,087
<ACCUMULATED-NII-CURRENT> 352
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,205
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 19,404
<NET-ASSETS> 136,902
<DIVIDEND-INCOME> 592
<INTEREST-INCOME> 5,423
<OTHER-INCOME> 0
<EXPENSES-NET> 1,419
<NET-INVESTMENT-INCOME> 4,596
<REALIZED-GAINS-CURRENT> 11,291
<APPREC-INCREASE-CURRENT> (1,035)
<NET-CHANGE-FROM-OPS> 14,851
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 7,474
<DISTRIBUTIONS-OF-GAINS> 13,575
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 2,342
<SHARES-REINVESTED> 1,744
<NET-CHANGE-IN-ASSETS> (14,687)
<ACCUMULATED-NII-PRIOR> 3,249
<ACCUMULATED-GAINS-PRIOR> 4,490
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 747
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,430
<AVERAGE-NET-ASSETS> 148,082
<PER-SHARE-NAV-BEGIN> 12.54
<PER-SHARE-NII> .39
<PER-SHARE-GAIN-APPREC> .90
<PER-SHARE-DIVIDEND> (.67)
<PER-SHARE-DISTRIBUTIONS> (1.24)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.92
<EXPENSE-RATIO> .96
</TABLE>
