The Retirement Red Zone®—

The Retirement Red Zone® is a very real, anxiety-producing period of time for people on the cusp of retirement and those who have just entered retirement. Yet the majority of people surveyed by Prudential didn't know how to help minimize the effect of losses during this time so that they wouldn't derail a long-planned retirement.

As described in Are You Ready for the Retirement Red Zone®?, Prudential defines this period as the five years before and the five years immediately following retirement. The Retirement Red Zone® is a critical time for retirement savings because short-term portfolio losses can have devastating long-term effects. With retirement imminent or already under way, not many recovery options exist.

Find out more about the Retirement Red Zone^SM

Risks not understood
Few of the 1,000 survey respondents (about an equal mix of pre-retirees and retirees) knew how to deftly navigate the Retirement Red Zone®:

• Almost two-thirds (63 percent) didn't realize how dangerous stock market declines in the early years of the Retirement Red Zone® could be.
• Twenty-seven percent had never even considered the problem, with women more likely than men to be unaware of the risk.
• Only 23 percent of respondents agreed that it was “very” critical to minimize losses in their retirement nest egg during this time.

Long-term impact
The reality is that the Retirement Red Zone® can't be avoided. However, the way you handle this very important time period can have an enormous impact on your standard of living in retirement and your peace of mind.

As the chart below shows, the risk of portfolio losses sustained in the Retirement Red Zone® have more dire consequences than those experienced at other times.

* This example is hypothetical and does not represent the performance of any particular investment.

Source: "Are You Ready for the Retirement Red Zone®? Prudential Financial Listens to Over 1,000 Americans in the Retirement Red Zone," 2006.

Annuities are issued by The Prudential Insurance Company of America, Newark, NJ, and its affiliates. Securities products and services are distributed by American Skandia Marketing, Incorporated and Prudential Investment Management Services, members SIPC. All are Prudential Financial companies.

Investors should consider the contract and the underlying portfolios' investment objectives, risks, charges, and expenses carefully before investing. This and other important information is contained in the prospectuses, which can be obtained from your financial professional. You should read the prospectuses carefully before investing.

IFS-A120623 Ed. 10/2006