Retirement Red Zone Ahead! Prudential Global Communications IFS-A114693 Ed. 02/2006
For Immediate Release Contact: Michael Arcaro January 4, 2006 (973) 802-2606 RETIREMENT RED ZONE AHEAD! Prudential Annuities Defines Most Critical Time of One s Investment Life NEWARK, N.J. Prudential Annuities, the domestic annuity business for Prudential Financial, Inc. (NYSE: PRU), announced today the concept of the Retirement Red Zone, an investment window consisting of the five years immediately before retirement and the first five years into retirement. Prudential Annuities has deemed the time frame critical because it s during this period that market downturns or negative investment performance can have a devastating financial effect felt years later when it s too late for retirees to recover. Given uncertainties around Social Security and traditional employer pension plans, the concept of retirement security is more tenuous than ever before, said David Odenath, president of Prudential Annuities. The decisions a person makes, or does not make, during this crucial 10-year span may have a fundamental financial impact on how they ll spend 20 to 30 years of retirement life. Among its primary messages, the Retirement Red Zone conceptualizes the idea that there are three common investor behavioral tendencies exhibited during the 10-year window that can have a long-term effect on investment portfolios: 1. Fearful Many investors may feel overwhelmed by the market s volatility, while others are anxious about making the wrong financial decisions. To compensate, they exhibit overly conservative investing tendencies that may not provide the necessary growth, or pull out of the market at the wrong time. 2. Unconcerned Born from a lifetime of investment decisions that seemed to have worked out fine, many individuals subscribe to the stay the course philosophy. The Retirement Red Zone is a far different investment period, and unpredictable, negative investment circumstances during this time frame may throw things off course. 3. Overconfident Overconfidence during the Retirement Red Zone years is defined by an aggressive
investing style in an attempt to maximize growth. At a time when investors should consider adding a level of income certainty to their portfolio, overconfident investing may have unexpected consequences. Although we ll release formal research later this year around this concept, focus group sessions we ve conducted have taught us that the Retirement Red Zone is a concept that resonates with Americans, said Jacob Herschler, senior vice president and head of marketing for Prudential Annuities. They re able to relate not only to behavioral tendencies but, more importantly, to the idea that even the best-laid plans can dramatically change. To help Americans manage the Retirement Red Zone, Prudential Annuities has launched an educational outreach that includes a continuing education series and toolkit for financial professionals, as well as a client seminar for individual investors. Components of the outreach highlight the many issues individuals may face during the Retirement Red Zone years and outline the important role variable annuities can play in, at a minimum, mitigating investment risk. For more information on the Retirement Red Zone, visit www.prudential.com. Annuities are issued by The Prudential Insurance Company of America, Newark, N.J., and its affiliates. Securities products and services distributed by Prudential Investment Management Services LLC (member SIPC), Three Gateway Center, 14th Floor, Newark, NJ 07102-4077. All are Prudential Financial companies. Each is solely responsible for its own financial condition and contractual obligations. Guarantees are dependent on the claims-paying ability of the issuing company. Prudential Financial companies, with approximately $522 billion in total assets under management as of September 30, 2005, serve individual and institutional customers worldwide and include The Prudential Insurance Company of America, one of the largest life insurance companies in the United States. These companies offer a variety of products and services, including life insurance, mutual funds, annuities, pension and retirement related services and administration, asset management, securities brokerage, banking and trust services, real estate brokerage franchises and relocation services. For more information, visit www.prudential.com. IFS-A112811 Ed. 01/2006
Excerpts of Retirement Red Zone Coverage Prudential Pushes 'Retirement Red Zone' January 4, 2006 Most investors know they are supposed to save. But far too many don't know what to do immediately before or after they retire. That is why Prudential Financial Inc. (PRU) on Wednesday launched a campaign to get Americans to think more about what it calls the Retirement Red Zone, the crucial five years before and the five years following retirement. "The Retirement Red Zone creates a new framework for thinking about retirement security," said Jac Herschler, senior vice president and head of marketing for Prudential Annuities. Prudential To Make Near Retirees See Red January 4, 2006 The annuities unit at Prudential Financial Inc. will be using the concept of a Retirement Red Zone to promote sales of variable annuities. The educational campaign will draw on the idea that portfolio problems during the 5 years before retirement and the 5 years after retirement can have a devastating effect on an investor s postretirement income. Pru Fingers 'Retirement Red Zone' January 6, 2006 The five years immediately preceding and following retirement are the most important in affecting finances during retirement, prompting Prudential Financial to start a new program targeting awareness of the "Retirement Red Zone." "Given uncertainties surrounding Social Security and traditional employer pension plans, the concept of retirement security is more tenuous than ever before," said David Odenath, president of Prudential Annuities. "The decisions a person makes, or does not make, during this crucial 10- year span may have a fundamental financial impact on how they'll spend 20 to 30 years of retirement life."
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Prudential Annuities is a business unit of Prudential Financial. Variable annuities issued by American Skandia Life Assurance Corporation, Shelton, CT or Pruco Life Insurance Company (in NY, Pruco Life Insurance Company of New Jersey), both located in Newark, NJ. American Skandia Marketing, Incorporated (with respect to the American Skandia annuities) and Prudential Investment Management Services LLC (with respect to the Pruco Life/Pruco Life of New Jersey annuities) are distributors (members SIPC). All are Prudential Financial companies. Each is solely responsible for its financial condition and its contractual obligations. Investors should consider the contract and underlying portfolios investment objectives, risks, charges and expenses carefully before investing. This and other important information are contained in the prospectuses, which can be obtained from your financial professional. You should read the prospectuses carefully before investing. IFS-A114693 Ed. 02/2006 MIS9