Wake-up Call: Nearly Eight in 10 Pre-Retirees Not Financially Fit Enough for Secure Retirement

Business Wire, May 8, 2003

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NEWARK, N.J.--(BUSINESS WIRE)--May 8, 2003

Prudential Financial Survey Reveals 34 percent of Pre-Retirees Are in

"Frail" Financial Shape

Prudential Financial, Inc. (NYSE:PRU) today released the results of a study that should be a wake-up call for the millions of Americans getting closer to retirement.

The study found that 79 percent of pre-retirees are not as financially "fit" as they should be at a critical stage of preparing for a secure retirement.

"Too many of those polled are not financially ready to retire comfortably," said Judy Rice, president of Prudential Investments. "In fact, when rating their financial health, a mere 21 percent are considered to be in 'excellent' shape. The rest are not as fit as they should be, including a significant 34 percent in outright 'frail' financial health."

The study, using a 16-question behavioral assessment tool, revealed other worrisome trends, including:

-- 76% of pre-retirees have either not established or not updated

a formal investment plan.

-- Half of those polled have not set clear goals on how much they

will need to save to retire comfortably.

-- Slightly more than one in four pre-retirees between the ages

of 50 and 54 do not contribute regularly to retirement savings

programs.

-- Almost half of those polled worry they may have to work at

least part-time during retirement to make ends meet.

-- Nearly two-thirds find today's investment information

confusing and often contradictory, and 45 percent admitted

that they feel less comfortable making investment decisions in

today's market than a few years ago.

"We also found that people often don't seek help from a financial professional because either they think they can go it alone, or that professional advice is only for the wealthy," added Rice. "The reality is, the less money you have the more you need to plan to make sure you get the most out of your investments--and the knowledge of a financial professional can help you get there."

On the positive side, the study found that American pre-retirees are overall still hopeful and optimistic about their financial future. Specifically:

-- 67% of those polled are confident their investments are on the

right track.

-- 62% believe they will achieve their retirement goals.

Optimism and confidence aside, it's clear that American pre-retirees need to do more to prepare for a secure retirement.

"Today's retirees won't retire the way their parents did. They may go back to school, travel or volunteer their time for the community," noted Rice. "One thing that won't change is that they'll still need money to be financially independent. To avoid worrying about outliving their savings, they'll need good planning and preparation."

For more information on retirement planning, including a brochure on reaching your retirement goals, visit www.prudential.com.

Prudential's Survey of America's Pre-Retirees polled a nationwide sample of 359 full-time employed men and women between the ages of 45 and 60 in December 2002.

Prudential Financial companies, with approximately $550 billion in total assets under management and administration as of March 31, 2003, serve individual and institutional customers worldwide and include The Prudential Insurance Company of America, one of the largest life insurance companies in the U.S. These companies offer a variety of products and services, including life insurance, property and casualty 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.

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