Retirement Planning in a Challenging Economy

Money

"What do I do now?" This is the question that is being asked by everyone from baby boomers

on the cusp of retirement to 20-somethings who have just started their retirement savings.

Today's volatile market has left everyone in the dark.

"Challenging economic times call for a return to basic principles, like a commitment to personal

savings, seeking professional advice to help investors assess their personal situations, and

employing a holistic approach to retirement planning," advises Christine Marcks, president of

Prudential Retirement.

A thoughtful approach to preparing for retirement is important for all individuals, no matter how far off

retirement might be. Prudential has developed "The Four Pillars of U.S. Retirement" as a framework

to discuss how Americans can prepare for and live in retirement.

For most Americans, no single pillar will be sufficient to meet retirement income needs. Now more

than ever, to save and plan effectively for a secure retirement, individuals should consider how Social

Security, workplace-provided programs, personal savings, and retirement choices will affect their

ability to live comfortably in the future.

Here are five back-to-basics tips to help Americans get their retirement plans back on track in this

challenging market:

1. Know the options and outcomes for drawing your Social Security benefits.

If you are nearing retirement, be sure to understand your options and how you can maximize your

Social Security benefits. Be clear about the tax implications of early or delayed benefits.

2. Continue to leverage and maximize your workplace-provided programs.

If you aren't already, enroll in your workplace-sponsored defined contribution plan ?401(k), 403(b),

etc. ? if one is available. You should contribute at least enough to get the full benefit of a sponsor

match. This is not the time to "leave money on the table."

Also consider in-plan investment options, such as target-date funds, automatic asset-allocation

programs, and even guarantee-based vehicles that can protect savings and income and offer a

guaranteed retirement paycheck.

3. Make the most of your personal savings.

Despite the uncertain economy, remain calm. Follow the basic principle of investment diversification,

which continues to be an important element of any financial plan. Work with a financial advisor to

appropriately allocate assets based on age, risk tolerance and years to retirement.

4. Assess ? and maybe reassess ? your retirement choices.

The current downturn may require you to re-examine key retirement choices, such as when to retire

or where to live. A tax-efficient approach to taking retirement income can play a big part in how long

your retirement assets will last. Understand the financial implications of your desired lifestyle and

consider which choices make sense for your personal situation.

5. Seek advice from a financial professional.

If you don't already have a financial advisor, a trusted friend or peer can be a good source for

referrals. Schedule a time to have a conversation with a professional who can provide you with

detailed advice about planning for your future retirement.

"Planning for retirement now by taking the back-to-basics approach is very important," says Marcks.

"In a down economy we must all take a realistic position on how different areas of our retirement are

affected in order to have a bright financial future."

Take the first step today and visit www.prudential.com.

Prudential Retirement is a Prudential Financial business. Retirement products and services are

provided by Prudential Retirement Insurance and Annuity Company, Hartford, Conn., or its affiliates.