American Funds Target Date Retirement Series

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[logo - American Funds (r)]

The right choice for the long term/(R)/

American Funds
Target Date Retirement Series

PROSPECTUS

DATE

TABLE OF CONTENTS

x Risk/Return summary
x Fees and expenses of the fund
x Investment objectives, strategies and risks
x Management and organization
x Purchase, exchange and sale of shares
x Sales charges
x Sales charge reductions
x Rollovers from retirement plans to IRAs
x Plans of distribution
x Other compensation to dealers
x Distributions and taxes

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED OF
THESE SECURITIES. FURTHER, IT HAS NOT DETERMINED THAT THIS PROSPECTUS IS
ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.

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American Funds Target Date Retirement Series, Inc. consists of nine funds,
each investing in a combination of American Funds representing various
investment objectives. The nine funds are:

American Funds Target Date Retirement Fund 2010
American Funds Target Date Retirement Fund 2015
American Funds Target Date Retirement Fund 2020
American Funds Target Date Retirement Fund 2025
American Funds Target Date Retirement Fund 2030
American Funds Target Date Retirement Fund 2035
American Funds Target Date Retirement Fund 2040
American Funds Target Date Retirement Fund 2045
American Funds Target Date Retirement Fund 2050

American Funds Target Date Retirement Series / Prospectus
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Risk/Return summary

Each fund in this series is designed for investors who plan to retire in, or
close to, the year designated in the fund's name. Depending on the proximity to
its target date, each fund will seek to achieve the following objectives to
varying degrees: growth, income and conservation of capital. For example, as
each fund approaches and passes its target date, it will increasingly emphasize
income and conservation of capital. These objectives may be changed without
shareholder approval.

Each fund will attempt to achieve its objectives by investing in a mix of
American Funds. The investment objectives of the American Funds include
long-term growth primarily through investments in both U.S. and non-U.S. stocks,
long-term growth and income primarily through investments in stocks, income and
growth through stocks and/or bond investments, long-term growth and current
income through investments in stocks and bonds and current income through bond
investments. In addition, each fund may also invest in funds in the American
Funds Insurance Series or other funds managed by Capital Research and Management
Company and its affiliates, subject to obtaining any necessary regulatory
approvals and notifying shareholders in advance. Capital Research and Management
Company is also the adviser to the funds in the series and may periodically
rebalance or modify the asset mix of the funds and change the underlying fund
nvestments.

Capital Research and Management Company will manage each fund for approximately
30 years after the fund reaches its target date. Funds that have been managed
for 20 years after their respective target dates may be combined, in accordance
with applicable law.

For investors who are close to, or in retirement, each fund's equity exposure
may result in investment volatility that could reduce an investor's available
retirement assets at a time when the investor has a need to withdraw funds. For
investors who are further from retirement, there is a risk a fund may invest too
much of an investor's retirement assets in investments designed to ensure
capital conservation and current income which may prevent the investor from
meeting his or her retirement goals.

Investments in each fund are also subject to the risks of investments in the
underlying American Funds. For example, the prices of securities held by the
underlying funds may decline in response to certain events including: those
directly involving the companies whose securities are owned by the underlying
funds, conditions affecting the general economy, overall market changes, local,
regional or global political, social or economic instability, and currency and
interest rate fluctuations.

In addition, investing in stocks may involve large price swings and potential
for loss. As a result, the value of the underlying funds may be subject to wide
price fluctuations.

Investing in bonds involves the risk that their values are affected by changing
interest rates, effective maturities and credit ratings. As a result, the value
of the underlying funds may be similarly affected.

American Funds Target Date Retirement Series / Prospectus

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Investing in stocks and bonds of issuers based outside the United States may
involve the risks described above to a greater extent and may also be affected
by other issues such as different accounting and legal standards, greater market
volatility, differing securities market structures, and various administrative
difficulties. These risks may be heightened in connection with investments in
developing countries.

Your investment in the funds is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency, entity or person.

YOU MAY LOSE MONEY BY INVESTING IN ANY FUND IN THE SERIES. THE LIKELIHOOD OF
LOSS MAY BE GREATER IF YOU INVEST FOR A SHORTER PERIOD OF TIME.

American Funds Target Date Retirement Series / Prospectus
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Fees and expenses of the funds

These tables describe the fees and expenses that you may pay if you buy and hold
shares of the funds. Since each fund pursues its investment objective by
investing in other mutual funds, you will bear your proportionate share of a
fund's operating expenses and also, indirectly, the operating expenses of the
underlying funds in which it invests.

SHAREHOLDER FEES (PAID DIRECTLY FROM YOUR INVESTMENT)
CLASS A ALL R SHARE CLASSES
-----------------------------------------------------------------------------

Maximum initial sales charge on purchases XX%/*/ none
(as a percentage of offering price)
-----------------------------------------------------------------------------
Maximum sales charge on reinvested dividends none none
-----------------------------------------------------------------------------
Maximum contingent deferred sales charge none none
-----------------------------------------------------------------------------
Redemption or exchange fees none none

* The initial sales charge is reduced for purchases of $25,000 or more and
eliminated for purchases of $1 million or more.

ANNUAL FUND OPERATING EXPENSES (DEDUCTED FROM FUND ASSETS)
CLASS CLASS CLASS CLASS CLASS
CLASS A R-1 R-2 R-3 R-4 R-5
------------------------------------------------------------------------------------------------------------------------------------

AMERICAN FUNDS
TARGET DATE RETIREMENT FUND 2010
------------------------------------------------------------------------------------------------------------------------------------
Management fees/1/ none none none none none none
------------------------------------------------------------------------------------------------------------------------------------
Distribution and/or service (12b-1) fees/2/ XX% XX% XX% XX% XX% none
------------------------------------------------------------------------------------------------------------------------------------
Other expenses XX XX XX XX XX XX%
------------------------------------------------------------------------------------------------------------------------------------
Total annual fund operating expenses XX XX XX XX XX XX
------------------------------------------------------------------------------------------------------------------------------------
Acquired fund fees and expenses/3/ XX XX XX XX XX XX
------------------------------------------------------------------------------------------------------------------------------------
Total annual fund and underlying funds XX XX XX XX XX XX
operating expenses
------------------------------------------------------------------------------------------------------------------------------------

AMERICAN FUNDS
TARGET DATE RETIREMENT FUND 2015
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Management fees/1/ none none none none none none
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Distribution and/or service (12b-1) fees/2/ XX% XX% XX% XX% XX% none
------------------------------------------------------------------------------------------------------------------------------------
Other expenses XX XX XX XX XX XX%
------------------------------------------------------------------------------------------------------------------------------------
Total annual fund operating expenses XX XX XX XX XX XX
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Acquired fund fees and expenses/3/ XX XX XX XX XX XX
------------------------------------------------------------------------------------------------------------------------------------
Total annual fund and underlying funds XX XX XX XX XX XX
operating expenses
------------------------------------------------------------------------------------------------------------------------------------

AMERICAN FUNDS
TARGET DATE RETIREMENT FUND 2020
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Management fees/1/ none none none none none none
------------------------------------------------------------------------------------------------------------------------------------
Distribution and/or service (12b-1) fees/2/ XX% XX% XX% XX% XX% none
------------------------------------------------------------------------------------------------------------------------------------
Other expenses XX XX XX XX XX XX%
------------------------------------------------------------------------------------------------------------------------------------
Total annual fund operating expenses XX XX XX XX XX XX
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Acquired fund fees and expenses/3/ XX XX XX XX XX XX
------------------------------------------------------------------------------------------------------------------------------------
Total annual fund and underlying funds XX XX XX XX XX XX
operating expenses
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AMERICAN FUNDS
TARGET DATE RETIREMENT FUND 2025
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Management fees/1/ none none none none none none
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Distribution and/or service (12b-1) fees/2/ XX% XX% XX% XX% XX% none
------------------------------------------------------------------------------------------------------------------------------------
Other expenses XX XX XX XX XX XX%
------------------------------------------------------------------------------------------------------------------------------------
Total annual fund operating expenses XX XX XX XX XX XX
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Acquired fund fees and expenses/3/ XX XX XX XX XX XX
------------------------------------------------------------------------------------------------------------------------------------
Total annual fund and underlying funds XX XX XX XX XX XX
operating expenses
------------------------------------------------------------------------------------------------------------------------------------

AMERICAN FUNDS
TARGET DATE RETIREMENT FUND 2030
------------------------------------------------------------------------------------------------------------------------------------
Management fees/1/ none none none none none none
------------------------------------------------------------------------------------------------------------------------------------
Distribution and/or service (12b-1) fees/2/ XX% XX% XX% XX% XX% none
------------------------------------------------------------------------------------------------------------------------------------
Other expenses XX XX XX XX XX XX%
------------------------------------------------------------------------------------------------------------------------------------
Total annual fund operating expenses XX XX XX XX XX XX
------------------------------------------------------------------------------------------------------------------------------------
Acquired fund fees and expenses/3/ XX XX XX XX XX XX
------------------------------------------------------------------------------------------------------------------------------------
Total annual fund and underlying funds XX XX XX XX XX XX
operating expenses
------------------------------------------------------------------------------------------------------------------------------------

AMERICAN FUNDS
TARGET DATE RETIREMENT FUND 2035
------------------------------------------------------------------------------------------------------------------------------------
Management fees/1/ none none none none none none
------------------------------------------------------------------------------------------------------------------------------------
Distribution and/or service (12b-1) fees/2/ XX% XX% XX% XX% XX% none
------------------------------------------------------------------------------------------------------------------------------------
Other expenses XX XX XX XX XX XX%
------------------------------------------------------------------------------------------------------------------------------------
Total annual fund operating expenses XX XX XX XX XX XX
------------------------------------------------------------------------------------------------------------------------------------
Acquired fund fees and expenses/3/ XX XX XX XX XX XX
------------------------------------------------------------------------------------------------------------------------------------
Total annual fund and underlying funds XX XX XX XX XX XX
operating expenses
------------------------------------------------------------------------------------------------------------------------------------

AMERICAN FUNDS
TARGET DATE RETIREMENT FUND 2040
------------------------------------------------------------------------------------------------------------------------------------
Management fees/1/ none none none none none none
------------------------------------------------------------------------------------------------------------------------------------
Distribution and/or service (12b-1) fees/2/ XX% XX% XX% XX% XX% none
------------------------------------------------------------------------------------------------------------------------------------
Other expenses XX XX XX XX XX XX%
------------------------------------------------------------------------------------------------------------------------------------
Total annual fund operating expenses XX XX XX XX XX XX
------------------------------------------------------------------------------------------------------------------------------------
Acquired fund fees and expenses/3/ XX XX XX XX XX XX
------------------------------------------------------------------------------------------------------------------------------------
Total annual fund and underlying funds XX XX XX XX XX XX
operating expenses
------------------------------------------------------------------------------------------------------------------------------------

AMERICAN FUNDS
TARGET DATE RETIREMENT FUND 2045
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Management fees/1/ none none none none none none
------------------------------------------------------------------------------------------------------------------------------------
Distribution and/or service (12b-1) fees/2/ XX% XX% XX% XX% XX% none
------------------------------------------------------------------------------------------------------------------------------------
Other expenses XX XX XX XX XX XX%
------------------------------------------------------------------------------------------------------------------------------------
Total annual fund operating expenses XX XX XX XX XX XX
------------------------------------------------------------------------------------------------------------------------------------
Acquired fund fees and expenses/3/ XX XX XX XX XX XX
------------------------------------------------------------------------------------------------------------------------------------
Total annual fund and underlying funds XX XX XX XX XX XX
operating expenses
------------------------------------------------------------------------------------------------------------------------------------

AMERICAN FUNDS
TARGET DATE RETIREMENT FUND 2050
------------------------------------------------------------------------------------------------------------------------------------
Management fees/1/ none none none none none none
------------------------------------------------------------------------------------------------------------------------------------
Distribution and/or service (12b-1) fees/2/ XX% XX% XX% XX% XX% none
------------------------------------------------------------------------------------------------------------------------------------
Other expenses XX XX XX XX XX XX%
------------------------------------------------------------------------------------------------------------------------------------
Total annual fund operating expenses XX XX XX XX XX XX
------------------------------------------------------------------------------------------------------------------------------------
Acquired fund fees and expenses/3/ XX XX XX XX XX XX
------------------------------------------------------------------------------------------------------------------------------------
Total annual fund and underlying funds XX XX XX XX XX XX
operating expenses
------------------------------------------------------------------------------------------------------------------------------------

1 The fund's investment adviser is not currently charging a management fee
(in addition to the fees paid by the underlying funds) although the investment
advisory and services agreement authorizes the adviser to be paid a fee up to
XX%. The investment adviser may begin charging a management fee in consultation
with the fund's board, but no management fee will be charged until further
review. The fund's investment adviser and board intend to review the management
fee as circumstances warrant.
2 Class A, R-1, R-2, R-3 and R-4 12b-1 fees may not exceed .25%, 1.00%, 1.00%,
.75% and .50%, respectively, of the class' average net assets annually.
3 To the extent such fund invests in underlying American Funds, they will invest
in Class R-5 shares. Accordingly, acquired fund fees and expenses are based on
the expenses of the Class R-5 shares of such underlying funds.

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American Funds Target Date Retirement Series / Prospectus
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OTHER EXPENSES

The "Other expenses" items in the table above include custodial, legal, transfer
agent and subtransfer agent/recordkeeping payments, as well as various other
expenses. Subtransfer agent/recordkeeping payments may be made to the series'
investment adviser, affiliates of the adviser and unaffiliated third parties for
providing recordkeeping and other administrative services to retirement plans
invested in the fund in lieu of the transfer agent providing such services. The
amount paid for subtransfer agent/recordkeeping services will vary depending on
the share class selected and the entity receiving the payments. The table below
shows the maximum payments to entities providing services to retirement plans.

PAYMENTS TO AFFILIATED ENTITIES PAYMENTS TO UNAFFILIATED
----------------------------------------------- ENTITIES
--------------------------------

Class A XX% of assets or XX% of assets or
$XX per participant position/1/ $XX per participant position/1/
-------------------------------------------------------------------------------
Class R-1 XX% of assets XX% of assets
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Class R-2 XX% of assets plus $XX per XX% of assets
participant position/2/ or XX% of
assets/3/
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Class R-3 XX% of assets plus $XX per XX% of assets
participant position/2/ or XX% of
assets/3/
Class R-4 XX% of assets XX% of assets
-------------------------------------------------------------------------------
Class R-5 XX% of assets XX% of assets
-------------------------------------------------------------------------------

1 Payment amount depends on the date upon which services commenced.
2 Payment with respect to Recordkeeper Direct/(R)/ program.
3 Payment with respect to PlanPremier/(R)/ program.

EXAMPLES

The examples below are intended to help you compare the cost of investing in a
fund in the series with the cost of investing in other mutual funds. The
examples assume that you invest $10,000 in a fund for the time periods
indicated, that your investment has a 5% return each year, that all dividends
and capital gain distributions are reinvested, and that the fund's operating
expenses remain the same as shown above. The examples do not reflect the impact
of any fee waivers or expense reimbursements.

Although your actual costs may be higher or lower, based on these assumptions,
your cumulative estimated expenses would be:

1 YEAR 3 YEARS
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AMERICAN FUNDS TARGET DATE RETIREMENT FUND 2010
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Class A/*/ $XX $XX
-------------------------------------------------------------------------------
Class R-1 XX XX
-------------------------------------------------------------------------------
Class R-2 XX XX
-------------------------------------------------------------------------------
Class R-3 XX XX
-------------------------------------------------------------------------------
Class R-4 XX XX
-------------------------------------------------------------------------------
Class R-5 XX XX
-------------------------------------------------------------------------------

AMERICAN FUNDS TARGET DATE RETIREMENT FUND 2015
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Class A/*/ $XX $XX
-------------------------------------------------------------------------------
Class R-1 XX XX
-------------------------------------------------------------------------------
Class R-2 XX XX
-------------------------------------------------------------------------------
Class R-3 XX XX
-------------------------------------------------------------------------------
Class R-4 XX XX
-------------------------------------------------------------------------------
Class R-5 XX XX
-------------------------------------------------------------------------------

AMERICAN FUNDS TARGET DATE RETIREMENT FUND 2020
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Class A/*/ $XX $XX
-------------------------------------------------------------------------------
Class R-1 XX XX
-------------------------------------------------------------------------------
Class R-2 XX XX
-------------------------------------------------------------------------------
Class R-3 XX XX
-------------------------------------------------------------------------------
Class R-4 XX XX
-------------------------------------------------------------------------------
Class R-5 XX XX
-------------------------------------------------------------------------------

AMERICAN FUNDS TARGET DATE RETIREMENT FUND 2025
-------------------------------------------------------------------------------
Class A/*/ $XX $XX
-------------------------------------------------------------------------------
Class R-1 XX XX
-------------------------------------------------------------------------------
Class R-2 XX XX
-------------------------------------------------------------------------------
Class R-3 XX XX
-------------------------------------------------------------------------------
Class R-4 XX XX
-------------------------------------------------------------------------------
Class R-5 XX XX
-------------------------------------------------------------------------------

AMERICAN FUNDS TARGET DATE RETIREMENT FUND 2030
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Class A/*/ $XX $XX
-------------------------------------------------------------------------------
Class R-1 XX XX
-------------------------------------------------------------------------------
Class R-2 XX XX
-------------------------------------------------------------------------------
Class R-3 XX XX
-------------------------------------------------------------------------------
Class R-4 XX XX
-------------------------------------------------------------------------------
Class R-5 XX XX
-------------------------------------------------------------------------------

AMERICAN FUNDS TARGET DATE RETIREMENT FUND 2035
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Class A/*/ $XX $XX
-------------------------------------------------------------------------------
Class R-1 XX XX
-------------------------------------------------------------------------------
Class R-2 XX XX
-------------------------------------------------------------------------------
Class R-3 XX XX
-------------------------------------------------------------------------------
Class R-4 XX XX
-------------------------------------------------------------------------------
Class R-5 XX XX
-------------------------------------------------------------------------------

AMERICAN FUNDS TARGET DATE RETIREMENT FUND 2040
-------------------------------------------------------------------------------
Class A/*/ $XX $XX
-------------------------------------------------------------------------------
Class R-1 XX XX
-------------------------------------------------------------------------------
Class R-2 XX XX
-------------------------------------------------------------------------------
Class R-3 XX XX
-------------------------------------------------------------------------------
Class R-4 XX XX
-------------------------------------------------------------------------------
Class R-5 XX XX
-------------------------------------------------------------------------------

AMERICAN FUNDS TARGET DATE RETIREMENT FUND 2045
-------------------------------------------------------------------------------
Class A/*/ $XX $XX
-------------------------------------------------------------------------------
Class R-1 XX XX
-------------------------------------------------------------------------------
Class R-2 XX XX
-------------------------------------------------------------------------------
Class R-3 XX XX
-------------------------------------------------------------------------------
Class R-4 XX XX
-------------------------------------------------------------------------------
Class R-5 XX XX
-------------------------------------------------------------------------------

AMERICAN FUNDS TARGET DATE RETIREMENT FUND 2050
-------------------------------------------------------------------------------
Class A/*/ $XX $XX
-------------------------------------------------------------------------------
Class R-1 XX XX
-------------------------------------------------------------------------------
Class R-2 XX XX
-------------------------------------------------------------------------------
Class R-3 XX XX
-------------------------------------------------------------------------------
Class R-4 XX XX
-------------------------------------------------------------------------------
Class R-5 XX XX
-------------------------------------------------------------------------------

* Reflects the maximum initial sales charge in the first year.

American Funds Target Date Retirement Series / Prospectus

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American Funds Target Date Retirement Series / Prospectus

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Investment objectives, strategies and risks

The investment objectives, strategies and risks of each fund are summarized
below.

Each fund in this series is designed for investors who plan to retire in, or
close to, the year designated in the fund's name. Depending on its proximity to
its target date, each fund will seek to achieve the following objectives to
varying degrees: growth, income and conservation of capital. For example, as
each fund approaches and passes its target date, it will increasingly emphasize
income and conservation of capital. These objectives may be changed without
shareholder approval.

Each fund will attempt to achieve its objectives by investing in a mix of
American Funds. The investment objectives of the American Funds include
long-term growth primarily through investments in both U.S. and non-U.S. stocks,
long-term growth and income primarily through investments in stocks, income and
growth through stocks and/or bond investments, long-term growth and current
income through investments in stocks and bonds and current income through bond
investments. In addition, each fund may also invest in funds in the American
Funds Insurance Series or other funds managed by Capital Research and Management
Company and its affiliates, subject to obtaining any necessary regulatory
approvals. Capital Research and Management Company is also the adviser to the
funds in the series and may periodically rebalance or modify the asset mix of
the funds and change the underlying fund investments.

The following chart illustrates the investment strategy of each fund by showing
how its asset mix is expected to change over time.

INVESTMENT STRATEGY CHART

----------------------------
(to be inserted)

The following tables detail each fund's asset strategy as of XX, 2007, as well
as the underlying American Funds used to pursue such strategy. The information
in the tables shows the target allocations for the funds as of XX, 2007.

ALLOCATION TABLE

------------------------
(to be inserted)

Each fund may, from time to time, take temporary defensive positions by holding
cash, money market instruments, or shares of money market funds in attempting to
respond to adverse market, economic, political, or other conditions. As a result
of taking these defensive positions, a fund may not achieve its investment
objective.

For investors who are close to, or in retirement, each fund's equity exposure
may result in investment volatility that could reduce an investor's available
retirement assets at a time

American Funds Target Date Retirement Series / Prospectus
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when the investor has a need to withdraw funds. For investors who are further
from retirement, there is a risk a fund may invest too much of an investor's
retirement assets in investments designed to ensure capital conservation and
current income which may prevent the investor from meeting his or her retirement
goals.

The success of each fund will be impacted by the results of the underlying
funds. For this reason, it is important to understand the risks associated with
investing in the underlying funds. For example, the prices of securities held by
underlying funds may decline in response to certain events including: those
directly involving the companies whose securities are owned by the underlying
funds, conditions affecting the general economy, overall market changes, local,
regional or global political, social or economic instability, and currency and
interest rate fluctuations.

In addition, investing in stocks may involve large price swings and potential
for loss. As a result, the value of the underlying funds may be subject to wide
price fluctuations.

Investing in bonds involves the risk that their values are affected by changing
interest rates, effective maturities and credit ratings of these securities. For
example, the values of debt securities in an underlying fund's portfolio
generally will decline when interest rates rise and increase when interest rates
fall. In addition, falling interest rates may cause an issuer to redeem or
"call" a security before its stated maturity, which may result in the fund
having to reinvest the proceeds in lower yielding securities. Debt securities
are also subject to credit risk, which is the possibility that the credit
strength of an issuer will weaken and/or an issuer of a debt security will fail
to make timely payments of principal or interest and the security will go into
default. Lower quality debt securities generally have higher rates of interest
and may be subject to greater price fluctuations than higher quality debt
securities. As a result, the value of the underlying fund may be similarly
affected.

Investing in stocks and bonds of issuers based outside the United States may
involve the risks described above to a greater extent and may also be affected
by other issues and events such as currency controls, different accounting,
auditing, financial reporting and legal standards and practices in some
countries, expropriation, changes in tax policy, greater market volatility,
differing securities market structures, higher transaction costs, and various
administrative difficulties, such as delays in clearing and settling portfolio
transactions or in receiving payment of dividends. These risks may be heightened
in connection with investments in developing countries.

American Funds Target Date Retirement Series / Prospectus

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UNDERLYING FUND INVESTMENT OBJECTIVES, RISKS AND INVESTMENT RESULTS

The investment objectives, risks and investment results of the underlying funds
are summarized below. The following discussion should not be construed as an
offer to purchase the underlying funds. For additional information regarding the
underlying funds, investors should read the most current prospectus(es) of the
underlying funds.

As noted above, to the extent a fund invests in one or more underlying American
Funds, it will invest in Class R-5 shares. However, each fund will offer
Class A, R-1, R-2, R-3, R-4 and R-5 shares. Because the expenses associated
with these share classes will approximate the expenses of the comparable
share classes for the underlying American Funds, returns for each of these
share classes is provided for each American Fund.

GROWTH FUNDS

AMCAP FUND

The fund seeks to make your investment grow over time by investing primarily in
stocks of U.S. companies with a record of above-average, long-term growth. The
fund may also invest in non-U.S. securities to a limited extent.

The fund is designed for investors seeking capital appreciation through
investments in stocks. Investors in the fund should a have a long-term
perspective and be able to tolerate potentially wide price fluctuations. Your
investment in the fund is subject to risks, including the possibility that the
value of the fund's portfolio holdings may fluctuate in response to events
specific to the companies in which the fund invests, as well as economic,
political or social events in the United States or abroad.

AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2005:
INVESTMENT RESULTS
1 YEAR 5 YEARS 10 YEARS LIFETIME/2/
---------------------------------------------------------------------------

CLASS A/1/ -- FIRST SOLD 5/1/67
With a maximum sales charge 0.82% 2.09% 10.90% 12.27%
Without a sales charge 6.98 3.31 11.55 12.45

1 YEAR LIFETIME/2/
--------------------------------------------------------

CLASS R-1 -- FIRST SOLD 6/26/02 6.10% 9.58%
CLASS R-2 -- FIRST SOLD 5/21/02 6.10 6.36
CLASS R-3 -- FIRST SOLD 6/4/02 6.60 7.78
CLASS R-4 -- FIRST SOLD 5/20/02 6.83 6.84
CLASS R-5 -- FIRST SOLD 5/15/02 7.25 7.08

1 Only Class A shares are sold with a sales charge.
2 Lifetime results for each share class are measured from the date the share
class was first sold.

Past results are not predictive of future results. The results of the underlying
fund shown above are provided for informational purposes only and do not
represent the results of any fund in the series.

American Funds Target Date Retirement Series / Prospectus
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THE GROWTH FUND OF AMERICA

The fund seeks to make your investment grow by investing primarily in common
stocks of companies that appear to offer superior opportunities for growth of
capital.

AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2005:
INVESTMENT RESULTS
1 YEAR 5 YEARS 10 YEARS LIFETIME/2/
---------------------------------------------------------------------------

CLASS A/1/ -- FIRST SOLD 12/1/73
With a maximum sales charge 7.66% 1.85% 12.66% 15.36%
Without a sales charge 14.23 3.06 13.33 15.58

1 YEAR LIFETIME/2/
-------------------------------------------------------

CLASS R-1 -- FIRST SOLD 6/6/02 13.33% 10.93%
CLASS R-2 -- FIRST SOLD 5/21/02 13.32 9.36
CLASS R-3 -- FIRST SOLD 5/21/02 13.87 9.83
CLASS R-4 -- FIRST SOLD 5/28/02 14.22 10.39
CLASS R-5 -- FIRST SOLD 5/15/02 14.53 10.08

1 Only Class A shares are sold with a sales charge.
2 Lifetime results for Class A shares are measured from December 1, 1973, when
Capital Research and Management Company became the fund's investment adviser.
Lifetime results for other share classes are measured from the date the share
class was first sold.

American Funds Target Date Retirement Series / Prospectus

<PAGE>

THE NEW ECONOMY FUND

The fund seeks to make your investment grow over time by investing primarily in
stocks of companies in the services and information areas of the global economy.

The fund is designed for investors seeking greater capital appreciation through
investments in stocks of issuers based around the world. Investors in the fund
should have a long-term perspective and be able to tolerate potentially wide
price fluctuations. Your investment in the fund is subject to risks, including
the possibility that the value of the fund's portfolio holdings may fluctuate in
response to events specific to the companies in which the fund invests, as well
as economic, political or social events in the United States or abroad. The fund
may be subject to additional risks because it invests in a more limited group of
sectors and industries than the broad market. Although all securities in the
fund's portfolio may be adversely affected by currency fluctuations or global
economic, political or social instability, securities issued by entities based
outside the United States may be affected to a greater extent.

AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2005:
INVESTMENT RESULTS
1 YEAR 5 YEARS 10 YEARS LIFETIME/2/
---------------------------------------------------------------------------

CLASS A/1/ -- FIRST SOLD 12/1/83
With a maximum sales charge 5.73% 0.17% 8.73% 12.13%
Without a sales charge 12.17 1.36 9.38 12.43

1 YEAR LIFETIME/2/
-------------------------------------------------------

CLASS R-1 -- FIRST SOLD 6/21/02 11.31% 12.01%
CLASS R-2 -- FIRST SOLD 5/31/02 11.31 8.83
CLASS R-3 -- FIRST SOLD 6/25/02 11.70 12.89
CLASS R-4 -- FIRST SOLD 7/25/02 12.14 19.48
CLASS R-5 -- FIRST SOLD 5/15/02 12.49 8.90

1 Only Class A shares are sold with a sales charge.
2 Lifetime results for each share class are measured from the date the share
class was first sold.

American Funds Target Date Retirement Series / Prospectus
<PAGE>

INTERNATIONAL AND GLOBAL GROWTH FUNDS

EUROPACIFIC GROWTH FUND

The fund seeks to make your investment grow over time by investing primarily in
stocks of issuers located in Europe and the Pacific Basin.

The fund is designed for investors seeking capital appreciation and
diversification through investments in stocks or issuers based outside the
United States. Investors in the fund should have a long-term perspective and be
able to tolerate potentially wide price fluctuations. Your investment in the
fund is subject to risks, including the possibility that the value of the fund's
portfolio holdings will fluctuate in response to events specific to the
companies in which the fund invests, as well as economic, political or social
events in the United States or abroad, and currency fluctuations. Although all
securities in the fund's portfolio may be adversely affected by currency
fluctuations or global economic, political or social instability, securities
issued by entities based outside the United States may be affected to a greater
extent.

AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2005:
INVESTMENT RESULTS
1 YEAR 5 YEARS 10 YEARS LIFETIME/2/
---------------------------------------------------------------------------

CLASS A/1/ -- FIRST SOLD 4/16/84
With a maximum sales charge 14.16% 6.62% 10.28% 13.44%
Without a sales charge 21.12 7.89 10.93 13.75

1 YEAR LIFETIME/2/
-------------------------------------------------------

CLASS R-1 -- FIRST SOLD 6/17/02 20.09% 15.30%
CLASS R-2 -- FIRST SOLD 5/31/02 20.11 13.78
CLASS R-3 -- FIRST SOLD 5/21/02 20.73 13.81
CLASS R-4 -- FIRST SOLD 6/7/02 21.05 15.34
CLASS R-5 -- FIRST SOLD 5/15/02 21.38 14.56

1 Only Class A shares are sold with a sales charge.
2 Lifetime results for each share class are measured from the date the share
class was first sold.

American Funds Target Date Retirement Series / Prospectus

<PAGE>

NEW PERSPECTIVE FUND

The fund seeks to make your investment grow over time by investing in stocks of
companies located around the world. Providing you with future income is a
secondary objective.

The fund is designed for investor seeking capital appreciation through stocks.
Investors in the fund should have a long-term perspective and be able to
tolerate potentially wide price fluctuations. Your investment in the fund is
subject to risks, including the possibility that the value of the funds'
portfolio holdings may fluctuate in response to events specific to the companies
in which the fund invests, as well as economic, political or social events in
the United States or abroad. Although all securities in the funds' portfolio may
be adversely affected by currency fluctuations or global economic, political or
social instability, securities issued by entities based outside the United
States may be affected to a greater extent.

AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2005:
INVESTMENT RESULTS
1 YEAR 5 YEARS 10 YEARS LIFETIME/2/
---------------------------------------------------------------------------

CLASS A/1/ -- FIRST SOLD 3/13/73
With a maximum sales charge 4.88% 4.76% 11.01% 13.51%
Without a sales charge 11.28 6.01 11.67 13.72

1 YEAR LIFETIME/2/
-------------------------------------------------------

CLASS R-1 -- FIRST SOLD 6/17/02 10.39% 11.77%
CLASS R-2 -- FIRST SOLD 5/21/02 10.35 9.79
CLASS R-3 -- FIRST SOLD 6/4/02 10.91 11.26
CLASS R-4 -- FIRST SOLD 5/28/02 11.24 10.81
CLASS R-5 -- FIRST SOLD 5/15/02 11.54 10.96

1 Only Class A shares are sold with a sales charge.
2 Lifetime results for each share class are measured from the date the share
class was first sold.

American Funds Target Date Retirement Series / Prospectus
<PAGE>

NEW WORLD FUND

The fund seeks to make your investment grow over time by investing primarily in
stocks of companies with significant exposure to countries with developing
economies and/or markets. The fund may also invest in debt securities of
issuers, including issuers of lower rated bonds, with exposure to these
countries.

The fund is designed for investors seeking capital appreciation. Investors in
the fund should have a long-term perspective and be able to tolerate potentially
wide price fluctuations. Your investment in the fund is subject to risks,
including the possibility that the value of the funds' portfolio holdings may
fluctuate in response to events specific to the companies in which the fund
invests, as well as economic, political or social events in the United States or
abroad. The values of debt securities owned by the fund may be affected by
changing interest rates and credit risk assessments. Lower quality or longer
maturity bonds may be subject to greater price fluctuations than higher quality
or shorter maturity bonds.

Although all securities in the fund's portfolio may be adversely affected by
currency fluctuations or global economic, political or social instability,
securities issued by entities based outside the United States, particularly in
countries with developing economies and/ or markets, may be affected to a
greater extent.

AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2005:
INVESTMENT RESULTS
--------------------------------------------------------------------------
1 YEAR 5 YEARS LIFETIME/2/
--------------------------------------------------------------------------

CLASS A/1/ -- FIRST SOLD 6/17/99
With a maximum sales charge 15.17% 12.81% 8.91%
Without a sales charge 22.20 14.15 9.91

1 YEAR LIFETIME/2/
---------------------------------------------------------

CLASS R-1 -- FIRST SOLD 6/11/02 21.18% 17.96%
CLASS R-2 -- FIRST SOLD 6/7/02 21.24 18.05
CLASS R-3 -- FIRST SOLD 6/6/02 21.68 18.55
CLASS R-4 -- FIRST SOLD 10/7/02 22.13 29.01
CLASS R-5 -- FIRST SOLD 5/15/02 22.49 17.95

1 Only Ckass A shares are sold with a sales charge.
2 Lifetime results for each share class are measured from the date the share
class was first sold.

American Funds Target Date Retirement Series / Prospectus

<PAGE>

SMALLCAP WORLD FUND

The fund seeks to make your investment grow over time by investing primarily in
stocks of companies located around the world with small market capitalizations
measured at the time of purchase. The fund's investment adviser currently
defines "small market capitalization" companies to be companies with market
capitalizations of $3.5 billion or less. This definition is subject to change.

The fund is designed for investors seeking capital appreciation through stocks.
Investors in the fund should have a long-term perspective and be able to
tolerate potentially wide price fluctuations. Your investment in the fund is
subject to risks, including the possibility that the value of the fund's
portfolio holdings may fluctuate in response to events specific to the companies
in which the fund invests, as well as economic, political or social events in
the United States or abroad. Investing in smaller companies may pose additional
risks as it is often more difficult to obtain information about smaller
companies, and the prices of their stocks may be more volatile than stocks of
larger, more established companies.

AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2005:
INVESTMENT RESULTS
1 YEAR 5 YEARS 10 YEARS LIFETIME/2/
---------------------------------------------------------------------------

CLASS A/1/ -- FIRST SOLD 4/30/90
With a maximum sales charge 9.84% 4.57% 8.66% 10.60%
Without a sales charge 16.53 5.81 9.30 11.02

1 YEAR LIFETIME/2/
-------------------------------------------------------

CLASS R-1 -- FIRST SOLD 6/19/02 15.66% 15.36%
CLASS R-2 -- FIRST SOLD 5/31/02 15.63 13.66
CLASS R-3 -- FIRST SOLD 6/20/02 16.11 16.10
CLASS R-4 -- FIRST SOLD 7/24/02 16.55 22.02
CLASS R-5 -- FIRST SOLD 5/15/02 16.87 13.68

1 Only Class A shares are sold with a sales charge.
2 Lifetime results for each share class are measured from the date the share
class was first sold.

American Funds Target Date Retirement Series / Prospectus
<PAGE>

GROWTH-AND-INCOME FUNDS

AMERICAN MUTUAL FUND

The fund seeks to provide you with current income, growth of capital and
conservation of principal. The fund invests primarily in common stocks of
larger, more established companies that have long records of increasing earnings
and dividends.

The fund is designed for investors seeking both income and capital appreciation,
as well as conservation of principal. In pursuing its objectives, the fund seeks
to develop a portfolio that is more resilient to market declines. The fund's
equity investments are limited to securities of companies that are included on
its eligible list. The eligible list is reviewed and approved by the fund's
board of directors at the recommendation of Capital Research and Management
Company, the fund's investment adviser. Your investment in the fund is subject
to risks, including the possibility that the fund's income and the value of its
portfolio holdings may fluctuate in response to events specific to the companies
in which the fund invests, as well as economic, political or social events in
the United States or abroad.

AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2005:
INVESTMENT RESULTS
1 YEAR 5 YEARS 10 YEARS LIFETIME/2/
---------------------------------------------------------------------------

CLASS A/1/ -- FIRST SOLD 2/21/50
With a maximum sales charge -1.11% 4.82% 8.80% 12.29%
Without a sales charge 4.94 6.07 9.45 12.41

1 YEAR LIFETIME/2/
--------------------------------------------------------

CLASS R-1 -- FIRST SOLD 6/11/02 4.00% 6.19%
CLASS R-2 -- FIRST SOLD 5/31/02 4.01 5.15
CLASS R-3 -- FIRST SOLD 6/6/02 4.49 6.44
CLASS R-4 -- FIRST SOLD 6/27/02 4.78 7.74
CLASS R-5 -- FIRST SOLD 5/15/02 5.15 5.87

1 Only Class A shares are sold with a sales charge.
2 Lifetime results for each share class are measured from the date the share
class was first sold.

American Funds Target Date Retirement Series / Prospectus

<PAGE>

CAPITAL WORLD GROWTH AND INCOME FUND

The fund seeks to make your investment grow over time and provide you with
current income by investing primarily in stocks of well-established companies
located around the world.

The fund is designed for investors seeking both capital appreciation and income.
In pursuing its objective, the fund tends to invest in stocks that the
investment adviser believes to be relatively resilient to market declines. Your
investment in the fund is subject to risks, including the possibility that the
fund's income and the value of its portfolio holdings may fluctuate in response
to events specific to the companies in which the fund invests, as well as
economic, political or social events in the United States or abroad.

AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2005:
INVESTMENT RESULTS
1 YEAR 5 YEARS 10 YEARS LIFETIME/2/
---------------------------------------------------------------------------

CLASS A/1/ -- FIRST SOLD 3/26/93
With a maximum sales charge 8.12% 9.65% 13.04% 13.64%
Without a sales charge 14.72 10.95 13.72 14.17

1 YEAR LIFETIME/2/
-------------------------------------------------------

CLASS R-1 -- FIRST SOLD 6/7/02 13.71% 15.22%
-------------------------------------------------------
CLASS R-2 -- FIRST SOLD 6/7/02 13.76 15.25
-------------------------------------------------------
CLASS R-3 -- FIRST SOLD 6/6/02 14.27 15.49
-------------------------------------------------------
CLASS R-4 -- FIRST SOLD 6/27/02 14.62 18.19
-------------------------------------------------------
CLASS R-5 -- FIRST SOLD 5/15/02 15.00 15.12
-------------------------------------------------------

1 Only Class A shares are sold with a sales charge..
2 Lifetime results for each share class are measured from the date the share
class was first sold.

American Funds Target Date Retirement Series / Prospectus
<PAGE>

FUNDAMENTAL INVESTORS

The fund seeks to make your investment grow and provide you with income over
time by investing primarily in common stocks of large, established companies
that offer growth potential at reasonable prices. The fund may also invest
significantly in non-U.S. securities.

The fund is designed for investors seeking both capital appreciation and income.
Your investment in the fund is subject to risks, including the possibility that
the fund's income and the value of its portfolio holdings may fluctuate in
response to events specific to the companies in which the fund invests, as well
as economic, political or social events in the United States or abroad.

AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2005:
INVESTMENT RESULTS
1 YEAR 5 YEARS 10 YEARS LIFETIME/2/
-------------------------------------------------------------------------

CLASS A/1/ -- FROM 8/1/78
With a maximum sales charge 5.26% 3.42% 10.55% 13.82%
Without a sales charge 11.68 4.65 11.21 14.07

1 YEAR LIFETIME/2/
-------------------------------------------------------

CLASS R-1 -- FIRST SOLD 6/19/02 10.74% 10.19%
CLASS R-2 -- FIRST SOLD 5/21/02 10.73 8.44
CLASS R-3 -- FIRST SOLD 6/4/02 11.26 9.81
CLASS R-4 -- FIRST SOLD 7/25/02 11.61 17.40
CLASS R-5 -- FIRST SOLD 5/15/02 11.94 9.31

1 Only Class A shares are sold with a sales charge.
2 Lifetime results for Class A shares are measured from August 1, 1978, when
Capital Research and Management Company became the fund's investment adviser.
Lifetime results for other share classes are measured from the date the share
class was first sold.

American Funds Target Date Retirement Series / Prospectus

<PAGE>

THE INVESTMENT COMPANY OF AMERICA

The fund seeks to make your investment grow and provide you with income over
time by investing primarily in common stocks that offer growth and dividend
potential.

The fund's investments are limited to securities of companies that are included
on its eligible list. Changes to the eligible list are reviewed and authorized
by the fund's board of directors at the recommendation of Capital Research and
Management Company, the fund's investment adviser.

AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2005:
INVESTMENT RESULTS
1 YEAR 5 YEARS 10 YEARS LIFETIME/2/
---------------------------------------------------------------------------

CLASS A/1/ -- FIRST SOLD 1/1/34
With a maximum sales charge 0.71% 2.65% 10.14% 12.77%
Without a sales charge 6.87 3.87 10.80 12.87

1 YEAR LIFETIME/2/
-------------------------------------------------------

CLASS R-1 -- FIRST SOLD 6/6/02 5.93% 7.04%
-------------------------------------------------------
CLASS R-2 -- FIRST SOLD 5/21/02 5.95 5.96
-------------------------------------------------------
CLASS R-3 -- FIRST SOLD 6/4/02 6.43 7.15
-------------------------------------------------------
CLASS R-4 -- FIRST SOLD 5/28/02 6.77 6.78
-------------------------------------------------------
CLASS R-5 -- FIRST SOLD 5/15/02 7.06 6.89

1 Only Class A shares are sold with a sales charge.
2 Lifetime results for each share class are measured from the date the share
class was first sold.

American Funds Target Date Retirement Series / Prospectus
<PAGE>

WASHINGTON MUTUAL INVESTORS FUND

The fund seeks to produce income and to provide an opportunity for growth of
principal consistent with sound common stock investing. The fund invests
primarily in common stocks of larger, more established companies that are listed
on, or meet the financial listing requirements of, the New York Stock Exchange
and have a strong record of earnings and dividends.

The fund is designed to provide fiduciaries, organizations, institutions and
individuals with a convenient and prudent medium of investment in high-quality
common stocks and securities convertible into common stocks. It is especially
designed to serve those individuals who are charged with the responsibility of
investing retirement plan trusts, other fiduciary-type reserves or family funds,
but who are reluctant to undertake the selection and supervision of individual
stocks. Your investment in the fund is subject to risks, including the
possibility that the fund's income and the value of its portfolio holdings may
fluctuate in response to events specific to the companies in which the fund
invests, as well as economic, political or social events in the United States or
abroad.

The fund strives to maintain a fully invested, diversified portfolio, consisting
primarily of high-quality common stocks. The fund has stringent investment
standards based upon criteria originally adopted by the United States District
Court for the District of Columbia and in effect for many years for determining
eligibility under the Court's Legal List procedure for the investment of trust
funds.

AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2005:
INVESTMENT RESULTS
1 YEAR 5 YEARS 10 YEARS LIFETIME/2/
---------------------------------------------------------------------------

CLASS A/1/ -- FIRST SOLD 7/31/52
With a maximum sales charge -2.42% 3.13% 9.42% 12.59%
Without a sales charge 3.55 4.36 10.07 12.72

1 YEAR LIFETIME/2/
-------------------------------------------------------

CLASS R-1 -- FIRST SOLD 5/29/02 2.65% 4.36%
CLASS R-2 -- FIRST SOLD 5/31/02 2.68 4.45
CLASS R-3 -- FIRST SOLD 6/4/02 3.19 5.61
CLASS R-4 -- FIRST SOLD 5/20/02 3.49 4.89
CLASS R-5 -- FIRST SOLD 5/15/02 3.79 5.13

1 Only Class A shares are sold with a sales charge.
2 Lifetime results for each share class are measured from the date the share
class was first sold.

American Funds Target Date Retirement Series / Prospectus

<PAGE>

EQUITY-INCOME FUNDS

CAPITAL INCOME BUILDER

The fund primarily seeks to provide you with a level of current income that
exceeds the average yield on U.S. stocks generally and a growing stream of
income over the years. Secondarily, the fund strives to make your investment
grow over time. The fund invests primarily in a broad range of income-producing
securities, including stocks with a history of, or potential for, increasing
dividends. The fund may also invest significantly in non-U.S. securities.

The fund is designed for investors seeking current income and capital
appreciation through a mix of investments that provide above-average price
stability. Your investment in the fund is subject to risks, including the
possibility that the fund's income and the value of its portfolio holdings may
fluctuate in response to economic, political or social events in the United
States or abroad.

The values of and the income generated by debt securities owned by the fund may
be affected by changing interest rates and credit risk assessments. The prices
of and the income generated by securities owned by the fund may be affected by
events specifically involving the companies issuing those securities. Although
all securities in the fund's portfolio may be adversely affected by currency
fluctuations or global economic, political or social instability, securities
issued by entities based outside the United States may be affected to a greater
extent.

AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2005:
INVESTMENT RESULTS
1 YEAR 5 YEARS 10 YEARS LIFETIME/2/

CLASS A/1/ -- FIRST SOLD 7/30/87
With a maximum sales charge -1.09% 8.28% 10.19% 11.05%
Without a sales charge 4.94 9.57 10.85 11.40

1 YEAR LIFETIME/2/

CLASS R-1 -- FIRST SOLD 6/11/02 4.00% 9.33%
CLASS R-2 -- FIRST SOLD 5/31/02 4.03 8.86
CLASS R-3 -- FIRST SOLD 6/4/02 4.50 9.55
CLASS R-4 -- FIRST SOLD 5/20/02 4.83 9.77
CLASS R-5 -- FIRST SOLD 5/15/02 5.15 10.08

1 Only Class A shares are sold with a sales charge.
2 Lifetime results for each share class are measured from the date the share
class was first sold.

American Funds Target Date Retirement Series / Prospectus
<PAGE>

THE INCOME FUND OF AMERICA

The fund seeks to provide you with current income and, secondarily, to make your
investment grow. It invests primarily in a broad range of income-producing
securities, including stocks and bonds. Generally, the fund will invest a
substantial portion of its assets in equity-type securities.

The fund is designed for investors seeking current income and capital
appreciation through a mix of investments that provides above-average price
stability. Your investment in the fund is subject to risks, including the
possibility that the fund's income and the value of its portfolio holdings may
fluctuate in response to economic, political or social events in the United
States or abroad.

The prices of and the income generated by securities owned by the fund may be
affected by events specifically involving the companies issuing those
securities. The values of and the income generated by debt securities owned by
the fund may be affected by changing interest rates and credit risk assessments.
Lower quality or longer maturity bonds may be subject to greater price
fluctuations than higher quality or shorter maturity bonds. Although all
securities in the fund's portfolio may be adversely affected by currency
fluctuations or global economic, political or social instability, securities
issued by entities based outside the United States may be affected to a greater
extent.

AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2005:
INVESTMENT RESULTS
1 YEAR 5 YEARS 10 YEARS LIFETIME/2/
---------------------------------------------------------------------------

CLASS A/1/ -- FIRST SOLD 12/1/73
With a maximum sales charge -2.52% 6.81% 9.00% 12.33%
Without a sales charge 3.41 8.08 9.65 12.54

1 YEAR LIFETIME/2/
-------------------------------------------------------

CLASS R-1 -- FIRST SOLD 6/17/02 2.45% 8.53%
CLASS R-2 -- FIRST SOLD 5/31/02 2.48 7.60
CLASS R-3 -- FIRST SOLD 6/4/02 3.01 8.45
CLASS R-4 -- FIRST SOLD 6/27/02 3.25 10.26
CLASS R-5 -- FIRST SOLD 5/15/02 3.55 8.60

American Funds Target Date Retirement Series / Prospectus

<PAGE>

BALANCED FUND

AMERICAN BALANCED FUND

The fund strives to provide you with conservation of capital, current income and
long-term growth of both capital and income. The fund invests in a broad range
of securities, including stocks and bonds.

The prices of and the income generated by securities owned by the fund may be
affected be events specifically involving the companies issuing those
securities, by changing interest rates and by changing credit risk assessments.

AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2005:
INVESTMENT RESULTS
1 YEAR 5 YEARS 10 YEARS
---------------------------------------------------------------------------

CLASS A/1/ -- FROM 7/26/75/2/
With a maximum sales charge -2.82% 5.69% 9.18%
Without a sales charge 3.12 6.94 9.82

1 YEAR LIFETIME/3/
-------------------------------------------------------------

CLASS R-1 -- FIRST SOLD 5/29/02 2.24% 5.91%
-------------------------------------------------------------
CLASS R-2 -- FIRST SOLD 5/21/02 2.31 5.86
-------------------------------------------------------------
CLASS R-3 -- FIRST SOLD 6/4/02 2.83 6.88
-------------------------------------------------------------
CLASS R-4 -- FIRST SOLD 6/21/02 3.03 8.08
-------------------------------------------------------------
CLASS R-5 -- FIRST SOLD 5/15/02 3.38 6.77

1 Only Class A shares are sold with a sales charge.
2 July 26, 1975 is the date on which Capital Research and Management Company
became the fund's investment adviser.
3 Lifetime results for each share class are measured from the date the share
class was first sold.

American Funds Target Date Retirement Series / Prospectus
<PAGE>

BOND FUNDS

AMERICAN HIGH-INCOME TRUST

The fund seeks to provide you with a high level of current income and,
secondarily, capital appreciation. The fund seeks to achieve these objectives by
investing primarily in a broad range of higher yielding and generally lower
quality debt securities that also provide an opportunity to increase in value.
Typically, when an issuer's financial health improves, the value of its debt
securities tends to rise.

The fund is designed for investors seeking a high level of current income and
who are able to tolerate greater credit risk and price fluctuations than funds
investing in higher quality bonds. Your investment in the fund is subject to
risks, including the possibility that the fund's income and the value of its
portfolio holdings may fluctuate in response to economic, political or social
events in the United States or abroad.

The values of and the income generated by debt securities owned by the fund may
be affected by changing interest rates and credit risk assessments. Lower
quality or longer maturity bonds may be subject to greater price fluctuations
than higher quality or shorter maturity bonds. The prices of and the income
generated by securities owned by the fund may also be affected by events
specifically involving the companies issuing those securities. Although all
securities in the fund's portfolio may be adversely affected by currency
fluctuations or global economic, political or social instability, securities
issued by entities based outside the United States may be affected to a greater
extent.

AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2005:
INVESTMENT RESULTS
1 YEAR 5 YEARS 10 YEARS LIFETIME/2/
---------------------------------------------------------------------------

CLASS A/1/ -- FIRST SOLD 2/19/88
With a maximum sales charge -0.25% 7.89% 7.03% 8.90%
Without a sales charge 3.63 8.71 7.44 9.14

1 YEAR LIFETIME/2/
-------------------------------------------------------

CLASS R-1 -- FIRST SOLD 7/11/02 2.74% 13.26%
CLASS R-2 -- FIRST SOLD 6/18/02 2.77 10.93
CLASS R-3 -- FIRST SOLD 6/21/02 3.17 11.84
CLASS R-4 -- FIRST SOLD 7/19/02 3.56 14.23
CLASS R-5 -- FIRST SOLD 5/15/02 3.87 10.55

1 Only Class A shares are sold with a sales charge.
2 Lifetime results for each share class are measured from the date the share
class was first sold.

American Funds Target Date Retirement Series / Prospectus

<PAGE>

THE BOND FUND OF AMERICA

The fund seeks to maximize your level of current income and preserve your
capital by investing primarily in bonds. Normally, the fund invests the majority
of its assets in bonds rated A and above. The fund may also invest in lower
rated bonds.

The fund is designed for investors seeking current income, capital preservation
over the long term and more price stability than that offered by stocks. Your
investment in the fund is subject to risks, including the possibility that the
fund's income and the value of its portfolio holdings may fluctuate in response
to economic, political or social events in the United States or abroad.

The values of and the income generated by debt securities owned by the fund may
be affected by changing interest rates and credit risk assessments. Lower
quality or longer maturity bonds may be subject to greater price fluctuations
than higher quality or shorter maturity bonds. Although all securities in the
fund's portfolio may be adversely affected by currency fluctuations or global
economic, political or social instability, securities issued by entities based
outside the United States may be affected to a greater extent.

AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2005:
INVESTMENT RESULTS
1 YEAR 5 YEARS 10 YEARS LIFETIME/2/
---------------------------------------------------------------------------

CLASS A/1/ -- FIRST SOLD 5/28/74
With a maximum sales charge -1.87% 5.79% 5.84% 9.10%
Without a sales charge 1.94 6.60 6.25 9.23

1 YEAR LIFETIME/2/
-------------------------------------------------------

CLASS R-1 -- FIRST SOLD 6/11/02 1.11% 5.84%
CLASS R-2 -- FIRST SOLD 5/31/02 1.14 5.72
CLASS R-3 -- FIRST SOLD 6/4/02 1.53 6.10
CLASS R-4 -- FIRST SOLD 5/20/02 1.91 6.60
CLASS R-5 -- FIRST SOLD 5/15/02 2.21 6.98

1 Only Class A shares are sold with a sales charge.
2 Lifetime results for each share class are measured from the date the share
class was first sold.

American Funds Target Date Retirement Series / Prospectus
<PAGE>

CAPITAL WORLD BOND FUND

The fund seeks to provide you, over the long term, with a high level of total
return as is consistent with prudent management, by investing primarily in
investment grade bonds issued by entities based around the world and denominated
in various currencies, including U.S. dollars. The fund may also invest in lower
quality, higher yielding debt securities. The total return of the fund will be
the result of interest income, changes in the market value of the fund's
investments and changes in the value of other currencies relative to the U.S.
dollar.

The fund is designed for investors seeking returns through a portfolio of bonds
issued by entities based around the world. Your investment in the fund is
subject to risks, including the possibility that the value of the fund's
investments may fluctuate in response to economic, political or social events in
the United States or abroad. The values of and the income generated by debt
securities owned by the fund may be affected by changing interest rates and
credit risk assessments. Lower quality or longer maturity bonds may be subject
to greater price fluctuations than higher quality or shorter maturity bonds.

The fund is nondiversified, which allows it to invest a greater percentage of
its assets in any one issuer than would otherwise be the case. However, the fund
intends to limit its investments in the securities of any single corporate
issuer.

AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2005:
INVESTMENT RESULTS
1 YEAR 5 YEARS 10 YEARS LIFETIME/2/
--------------------------------------------------------------------------

CLASS A/1/ -- FIRST SOLD 8/4/87
With a maximum sales charge -6.51% 7.91% 5.31% 7.40%
Without a sales charge -2.86 8.74 5.72 7.62

1 YEAR LIFETIME/2/
-------------------------------------------------------

CLASS R-1 -- FIRST SOLD 6/28/02 -3.67% 9.28%
CLASS R-2 -- FIRST SOLD 7/9/02 -3.61 9.38
CLASS R-3 -- FIRST SOLD 7/16/02 -3.29 9.51
CLASS R-4 -- FIRST SOLD 8/15/02 -2.85 10.72
CLASS R-5 -- FIRST SOLD 5/15/02 -2.65 11.36

1 Only Class A shares are sold with a sales charge.
2 Lifetime results for each share class are measured from the date the share
class was first sold

American Funds Target Date Retirement Series / Prospectus

<PAGE>

INTERMEDIATE BOND FUND OF AMERICA

The fund seeks to provide you with current income while preserving your
investment by maintaining a portfolio having an average effective maturity of no
longer than five years and consisting of debt securities primarily with quality
ratings of A or better or in unrated securities determined to be of equivalent
quality. The fund may invest in debt securities rated Baa/BBB.

The fund is designed for investors seeking income, higher credit quality and
capital preservation over the long term. Your investment in the fund is subject
to risks, including the possibility that the fund's income and the value of its
portfolio holdings may fluctuate in response to economic, political or social
events in the United States or abroad. The values of debt securities owned by
the fund may be affected by changing interest rates and credit risk assessments.

The fund primarily invests in intermediate-term debt securities, including
securities guaranteed or sponsored by the U.S. government, mortgage- and
asset-backed securities. The fund may invest in debt securities and
mortgage-backed securities issued by federal agencies and instrumentalities that
are not backed by the full faith and credit of the U.S. government. Examples of
such securities are mortgage-backed securities issued by the Federal National
Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation
(Freddie Mac).

AVERAGE ANNUAL TOTAL RETURNS/1/ FOR PERIODS ENDED DECEMBER 31, 2005:
INVESTMENT RESULTS
1 YEAR 5 YEARS 10 YEARS LIFETIME/2/
---------------------------------------------------------------------------

CLASS A/1/ -- FIRST SOLD 2/19/88
With a maximum sales charge -0.90% 3.50% 4.63% 5.98%
Without a sales charge 1.62 4.02 4.89 6.13

---------------------------------------------------------------------------

1 YEAR LIFETIME/2/
-------------------------------------------------------

CLASS R-1 -- FIRST SOLD 6/13/02 0.85% 2.12%
-------------------------------------------------------
CLASS R-2 -- FIRST SOLD 5/31/02 0.89 2.22
CLASS R-3 -- FIRST SOLD 6/26/02 1.26 2.41
-------------------------------------------------------
CLASS R-4 -- FIRST SOLD 6/27/02 1.63 2.84
-------------------------------------------------------
CLASS R-5 -- FIRST SOLD 5/15/02 1.94 3.50

-------------------------------------------------------

1 Only Class A shares are sold with a sales charge.
2 Lifetime results for each share class are measured from the date the share
class was first sold.

Past results are not predictive of future results. The results of the underlying
fund shown above are provided for informational purposes and do not represent
the results of any fund in the series.

American Funds Target Date Retirement Series / Prospectus
<PAGE>

SHORT-TERM BOND FUND OF AMERICA

The fund seeks to provide you with the current income while preserving your
investment by maintaining a portfolio having a dollar-weighted average affective
maturity no greater than three years and consisting of debt securities primarily
with quality ratings of AA or Aa or better or in unrated securities determined
to be of equivalent quality. The fund may invest in A-rated debt securities.

The fund primarily invests in short-term debt securities, including securities
guaranteed or sponsored by the U.S. government, mortgage- and asset-backed
securities. The fund may invest in debt securities and mortgage-backed
securities issued by federal agencies and instrumentalities that are not backed
by the full faith and credit of the U.S. government. Examples of such securities
are mortgage-backed securities issued by the Federal National Mortgage
Association ("Fannie Mae") and the Federal Home Loan Mortgage Corporation
("Freddie Mac").

Short-Term Bond Fund commenced investment operations on November 1, 2006.
Currently, there are no investment results for this fund.

American Funds Target Date Retirement Series / Prospectus

<PAGE>

U.S. GOVERNMENT SECURITIES FUND

The fund seeks to provide you with a high level of current income as well as to
preserve your investment by investing at least 80% of its assets in securities
that are issued, guaranteed, or sponsored by the U.S. government. The fund may
invest up to 20% of its assets in non-government securities rated AAA or Aaa or
in unrated securities determined to be of equivalent quality.

The fund may invest in debt securities and mortgage-backed securities issued by
federal agencies and instrumentalities that are not backed by the full faith and
credit of the U.S. government. Examples of such securities are mortgage-backed
securities issued by the Federal National Mortgage Association (Fannie Mae) and
the Federal Home Loan Mortgage Corporation (Freddie Mac).

While the fund invests in the highest quality debt securities, these securities
may still be affected by changing interest rates and prepayment risks. It is
important to note that neither the fund nor its yield is guaranteed by the U.S.
government.

AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2005:
INVESTMENT RESULTS
1 YEAR 5 YEARS 10 YEARS LIFETIME/2/
----------------------------------------------------------------------------

CLASS A/1/ -- FIRST SOLD 10/17/85
With a maximum sales charge -1.54% 3.67% 4.72% 6.67%
Without a sales charge 2.27 4.46 5.12 6.88

1 YEAR LIFETIME/2/
-------------------------------------------------------

CLASS R-1 -- FIRST SOLD 6/13/02 1.50% 2.83%
CLASS R-2 -- FIRST SOLD 5/31/02 1.52 2.96
CLASS R-3 -- FIRST SOLD 6/6/02 1.91 3.37
CLASS R-4 -- FIRST SOLD 5/28/02 2.29 3.79
CLASS R-5 -- FIRST SOLD 5/15/02 2.60 4.28

1 Only Class A shares are sold with a sales charge.
2 Lifetime results for each share class are measured from the date the share
class was first sold.

American Funds Target Date Retirement Series / Prospectus
<PAGE>

Management and organization

INVESTMENT ADVISER

Capital Research and Management Company, an experienced investment management
organization founded in 1931, serves as investment adviser to the series and the
underlying American Funds. Capital Research and Management Company is a wholly
owned subsidiary of The Capital Group Companies, Inc. and is located at 333
South Hope Street, Los Angeles, California 90071, and 135 South State College
Boulevard, Brea, California 92821. Capital Research and Management Company
manages the investment portfolio and business affairs of the series. Capital
Research and Management Company is not currently paid a management fee for its
services, however, it receives management fees from managing the underlying
funds.

EXECUTION OF PORTFOLIO TRANSACTIONS

The funds will not incur any commission expenses relating to purchases or sales
of the underlying funds. With respect to other securities, such as cash and cash
equivalents, however, the investment adviser places orders with broker-dealers
for the fund's portfolio transactions. The investment adviser strives to obtain
best execution for the fund's portfolio transactions, taking into account a
variety of factors to produce the most favorable total price reasonably
attainable under the circumstances. These factors include the size and type of
transaction, the cost and quality of executions, and the broker-dealer's ability
to offer liquidity and anonymity. Subject to the considerations outlined above,
the investment adviser may place orders for the funds' portfolio transactions
with broker-dealers who have sold shares of funds managed by the investment
adviser, or who have provided investment research, statistical or other related
services to the investment adviser. In placing orders for the funds' portfolio
transactions, the investment adviser does not commit to any specific amount of
business with any particular broker-dealer. Subject to best execution, the
investment adviser may consider investment research, statistical or other
related services provided to the adviser in placing orders for the funds'
portfolio transactions. However, when the investment adviser places orders for
the funds' portfolio transactions, it does not give any consideration to whether
a broker-dealer has sold shares of the funds managed by the investment adviser.

PORTFOLIO HOLDINGS

Portfolio holdings information for each fund is available on the American Funds
Retirement website at AmericanFundsRetirement.com. A link to the funds' complete
list of publicly disclosed portfolio holdings, updated as of each calendar
quarter-end, is generally posted to its respective page within 45 days after the
end of the applicable quarter. This information is available on the website
until new information for the next quarter is posted. Portfolio holdings
information for the funds is also contained in reports filed with the Securities
and

American Funds Target Date Retirement Series / Prospectus

<PAGE>

Exchange Commission. In addition, portfolio holdings information for each
underlying fund is available at americanfunds.com.

A description of the series' policies and procedures regarding disclosure of
information about its portfolio holdings is available in the statement of
additional information.

PORTFOLIO MANAGEMENT FOR THE SERIES

Capital Research and Management Company is the investment adviser to the series.
For each fund in the series, the portfolio counselor selects the underlying
funds and the allocation strategy.

The primary individual portfolio counselors for American Funds Target Date
Retirement Series are:

PRIMARY TITLE WITH PORTFOLIO
PORTFOLIO INVESTMENT ADVISER COUNSELOR'S
PORTFOLIO COUNSELOR/ COUNSELOR (OR AFFILIATE) ROLE IN
FUND TITLE EXPERIENCE AND INVESTMENT MANAGEMENT
(IF APPLICABLE) IN THIS FUND EXPERIENCE OF THE FUND
------------------------------------------------------------------------

------------------------------------------------------------------------
(to be inserted)
------------------------------------------------------------------------

Information regarding the portfolio counselors' compensation, their ownership of
shares in the series and other accounts they manage can be found in the
statement of additional information.

MULTIPLE PORTFOLIO COUNSELOR SYSTEM FOR THE UNDERLYING FUNDS

Capital Research and Management Company uses a system of multiple portfolio
counselors in managing assets for the underlying funds. Under this approach, the
portfolio of each underlying fund is divided into segments managed by individual
counselors. Counselors decide how their respective segments will be invested. In
addition, Capital Research and Management Company's investment analysts may make
investment decisions with respect to a portion of an underlying fund's
portfolio. Investment decisions are subject to the underlying fund's
objective(s), policies and restrictions and the oversight of the appropriate
investment-related committees of Capital Research and Management Company.

American Funds Target Date Retirement Series / Prospectus
<PAGE>

Purchase, exchange and sale of shares

AMERICAN FUNDS SERVICE COMPANY, THE SERIES' TRANSFER AGENT, ON BEHALF OF THE
SERIES AND AMERICAN FUNDS DISTRIBUTORS, THE SERIES' DISTRIBUTOR, IS REQUIRED BY
LAW TO OBTAIN CERTAIN PERSONAL INFORMATION FROM YOU OR ANY OTHER PERSON(S)
ACTING ON YOUR BEHALF IN ORDER TO VERIFY YOUR OR SUCH PERSON'S IDENTITY. IF YOU
DO NOT PROVIDE THE INFORMATION, THE TRANSFER AGENT MAY NOT BE ABLE TO OPEN YOUR
ACCOUNT. IF THE TRANSFER AGENT IS UNABLE TO VERIFY YOUR IDENTITY OR THAT OF ANY
OTHER PERSON(S) AUTHORIZED TO ACT ON YOUR BEHALF, OR BELIEVES IT HAS IDENTIFIED
POTENTIALLY CRIMINAL ACTIVITY, THE FUND AND AMERICAN FUNDS DISTRIBUTORS RESERVE
THE RIGHT TO CLOSE YOUR ACCOUNT OR TAKE SUCH OTHER ACTION THEY DEEM REASONABLE
OR REQUIRED BY LAW.

PURCHASES AND EXCHANGES

Eligible retirement plans generally may open an account and purchase Class A or
R shares by contacting any investment dealer (who may impose transaction charges
in addition to those described in this prospectus) authorized to sell the funds'
shares. Some or all R share classes may not be available through certain
investment dealers. Additional shares may be purchased through a plan's
administrator or recordkeeper.

Class R shares generally are available only to 401(k) plans, 457 plans,
employer-sponsored 403(b) plans, profit-sharing and money purchase pension
plans, defined benefit plans and nonqualified deferred compensation plans. Class
R shares also are generally available only to retirement plans where plan level
or omnibus accounts are held on the books of the funds. In addition, Class R-5
shares generally are available only to retirement plans with $1 million or more
in plan assets. Class R shares generally are not available to retail
nonretirement accounts, traditional and Roth Individual Retirement Accounts
(IRAs), Coverdell Education Savings Accounts, SEPs, SARSEPs, SIMPLE IRAs,
individual 403(b) plans and 529 college savings plans.

Retirement plan accounts not eligible to purchase Class R shares may purchase
Class A shares. Class A shares are generally not available for retirement plans
using the PlanPremier or Recordkeeper Direct recordkeeping programs.

Shares of the series offered through this prospectus generally may be exchanged
into shares of the same class of other American Funds. Exchanges of Class A
shares from American Funds money market funds purchased without a sales charge
generally will be subject to the appropriate sales charge.

FREQUENT TRADING OF FUND SHARES

The series and American Funds Distributors reserve the right to reject any
purchase order for any reason. The funds are not designed to serve as a vehicle
for frequent trading. Frequent trading of fund shares may lead to increased
costs to the fund and less efficient management of the fund's portfolio,
resulting in dilution of the value of the shares held by long-term shareholders.
Accordingly, purchases, including those that are part of exchange

American Funds Target Date Retirement Series / Prospectus

<PAGE>

activity, that the series or American Funds Distributors has determined could
involve actual or potential harm to the fund may be rejected.

In addition to the series' broad ability to restrict potentially harmful trading
as described above, the series' board of directors has also adopted certain
policies and procedures with respect to frequent purchases and redemptions of
fund shares. Under the series' "purchase blocking policy," any shareholder
redeeming shares (including redemptions that are part of an exchange
transaction) having a value of $5,000 or more from the funds will be precluded
from investing in the series (including investments that are part of an exchange
transaction) for 30 calendar days after the redemption transaction. This
prohibition will not apply to redemptions by shareholders whose shares are held
on the books of third-party intermediaries that have not adopted procedures to
implement this policy. American Funds Service Company will work with
intermediaries to develop such procedures or other procedures that American
Funds Service Company determines are reasonably designed to achieve the
objective of the purchase blocking policy. At the time the intermediaries adopt
these procedures, shareholders whose accounts are on the books of such
intermediaries will be subject to this purchase blocking policy or another
frequent trading policy that is reasonably designed to achieve the objective of
the purchase blocking policy. There is no guarantee that all instances of
frequent trading in fund shares will be prevented.

Under the series' purchase blocking policy, certain purchases will not be
prevented and certain redemptions will not trigger a purchase block, such as:
systematic redemptions and purchases where the entity maintaining the
shareholder account is able to identify the transaction as a systematic
redemption or purchase; purchases and redemptions of shares having a value of
less than $5,000; retirement plan contributions, loans and distributions
(including hardship withdrawals) identified as such on the retirement plan
recordkeeper's system; and purchase transactions involving transfers of assets,
rollovers, Roth IRA conversions and IRA recharacterizations, where the entity
maintaining the shareholder account is able to identify the transaction as one
of these types of transactions.

NOTWITHSTANDING THE SERIES' PURCHASE BLOCKING POLICY, ALL TRANSACTIONS IN FUND
SHARES REMAIN SUBJECT TO THE SERIES' AND AMERICAN FUNDS DISTRIBUTORS' RIGHT TO
RESTRICT POTENTIALLY ABUSIVE TRADING GENERALLY (INCLUDING THE TYPES OF
TRANSACTIONS DESCRIBED ABOVE THAT WILL NOT BE PREVENTED OR TRIGGER A PURCHASE
BLOCK UNDER THE POLICY). SEE THE STATEMENT OF ADDITIONAL INFORMATION FOR MORE
INFORMATION ABOUT HOW AMERICAN FUNDS SERVICE COMPANY MAY ADDRESS OTHER
POTENTIALLY ABUSIVE TRADING ACTIVITY IN THE AMERICAN FUNDS.

SALES

Please contact your dealer, financial adviser, American Funds Service Company
or in the case of an employer-sponsored retirement plan, your plan administrator
or recordkeeper, in order to sell shares from your retirement plan.

If you notify American Funds Service Company, you may reinvest proceeds from a
redemption, dividend payment or capital gain distribution without a sales charge
in the same fund or other American Funds within 90 days after the date of the
redemption or

American Funds Target Date Retirement Series / Prospectus
<PAGE>

distribution. Proceeds will be reinvested in the same share class from which the
original redemption or distribution was made. Redemption proceeds of Class A
shares representing direct purchases in American Funds money market funds that
are reinvested in non-money market American Funds will be subject to a sales
charge. Proceeds will be reinvested at the next calculated net asset value after
your request is received and accepted by American Funds Service Company. You may
not reinvest proceeds in the American Funds as described in this paragraph if
such proceeds are subject to a purchase block as described under "Frequent
trading of fund shares." This paragraph does not apply to rollover investments
as described under "Rollovers from retirement plans to IRAs."

VALUING SHARES

Each fund's net asset value is calculated based upon the net asset values of the
underlying funds in which each fund invests. The prospectuses for the underlying
funds explain the circumstances under which the underlying funds will use fair
value pricing and the effects of using fair value pricing. The net asset value
per share of each class equals the total value of its assets, less its
liabilities, divided by the number of its outstanding shares. Shares are valued
each day the New York Stock exchange is open for trading.

American Funds Target Date Retirement Series / Prospectus

<PAGE>

Sales charges

CLASS A SHARES

The initial sales charge you pay each time you buy Class A shares differs
depending upon the amount you invest and may be reduced or eliminated for larger
purchases as indicated below. The "offering price," the price you pay to buy
shares, includes any applicable sales charge, which will be deducted directly
from your investment. Shares acquired through reinvestment of dividends or
capital gain distributions are not subject to an initial sales charge.

SALES CHARGE AS A
PERCENTAGE OF:
DEALER
NET COMMISSION
OFFERING AMOUNT AS A PERCENTAGE
INVESTMENT PRICE INVESTED OF OFFERING PRICE
------------------------------------------------------------------------------

Less than $25,000 XX% XX% XX%
------------------------------------------------------------------------------
$25,000 but less than $50,000 XX XX XX
------------------------------------------------------------------------------
$50,000 but less than $100,000 XX XX XX
------------------------------------------------------------------------------
$100,000 but less than $250,000 XX XX XX
------------------------------------------------------------------------------
$250,000 but less than $500,000 XX XX XX
------------------------------------------------------------------------------
$500,000 but less than $750,000 XX XX XX
------------------------------------------------------------------------------
$750,000 but less than $1 million XX XX XX
------------------------------------------------------------------------------
$1 million or more and certain other none none see below
investments described below
------------------------------------------------------------------------------

The sales charge, expressed as a percentage of the offering price or the net
amount invested, may be higher or lower than the percentages described in the
table above due to rounding. This is because the dollar amount of the sales
charge is determined by subtracting the net asset value of the shares purchased
from the offering price, which is calculated to two decimal places using
standard rounding criteria. The impact of rounding will vary with the size of
the investment and the net asset value of the shares.

CLASS A PURCHASES NOT SUBJECT TO SALES CHARGES

The following investments are not subject to any initial or contingent deferred
sales charge if American Funds Service Company is properly notified of the
nature of the investment:

. investments made by accounts that are part of certain qualified fee-based
programs and that purchased Class A shares before the discontinuation of your
investment dealer's load-waived A share program with the American Funds; and

. certain rollover investments from retirement plans to IRAs (see "Rollovers
from retirement plans to IRAs" below for more information).

American Funds Target Date Retirement Series / Prospectus
<PAGE>

The distributor may pay dealers up to 1% on investments made in Class A shares
with no initial sales charge. The series may reimburse the distributor for these
payments through its plans of distribution (see "Plans of distribution" below).

Certain other investors may qualify to purchase shares without a sales charge,
such as employees of investment dealers and registered investment advisers
authorized to sell American Funds, and employees of The Capital Group Companies.
Please see the statement of additional information for more information.

EMPLOYER-SPONSORED RETIREMENT PLANS

Employer-sponsored retirement plans that are eligible to purchase Class R
shares may instead purchase Class A shares and pay the applicable Class A sales
charge, provided their recordkeepers can properly apply a sales charge on plan
investments. These plans are not eligible to make initial purchases of $1
million or more in Class A shares and thereby invest in Class A shares without
a sales charge, nor are they eligible to establish a statement of intention
that qualifies them to purchase Class A shares without a sales charge. More
information about statements of intention can be found under "Sales charge
reductions and waivers." Plans investing in Class A shares with a sales charge
may purchase additional Class A shares in accordance with the sales charge
table above.

Employer-sponsored retirement plans that invested in Class A shares without any
sales charge on or before March 31, 2004, and that continue to meet the
eligibility requirements in effect as of that date for purchasing Class A
shares at net asset value, may continue to purchase Class A shares without any
initial or contingent deferred sales charge.

CLASS R SHARES

Class R shares are sold without any initial or contingent deferred sales charge.
The distributor will pay dealers annually an asset-based compensation of up to
1.00% for sales of Class R-1 shares, up to .75% for Class R-2 shares, up to .50%
for Class R-3 shares and up to .25% for Class R-4 shares. No dealer compensation
is paid on sales of Class R-5 shares. The series may reimburse the distributor
for these payments through its plans of distribution (see "Plans of
distribution" below).

American Funds Target Date Retirement Series / Prospectus

<PAGE>

Sales charge reductions

TO RECEIVE A REDUCTION IN YOUR CLASS A INITIAL SALES CHARGE, YOU MUST LET YOUR
FINANCIAL ADVISER OR AMERICAN FUNDS SERVICE COMPANY KNOW AT THE TIME YOU
PURCHASE SHARES THAT YOU QUALIFY FOR SUCH A REDUCTION. IF YOU DO NOT LET YOUR
ADVISER OR AMERICAN FUNDS SERVICE COMPANY KNOW THAT YOU ARE ELIGIBLE FOR A
REDUCTION, YOU MAY NOT RECEIVE A SALES CHARGE DISCOUNT TO WHICH YOU ARE
OTHERWISE ENTITLED. In order to determine your eligibility to receive a sales
charge discount, it may be necessary for you to provide your adviser or American
Funds Service Company with information and records (including account
statements) of all relevant accounts invested in the American Funds.

IN ADDITION TO THE INFORMATION BELOW, YOU MAY OBTAIN MORE INFORMATION ABOUT
SALES CHARGE REDUCTIONS THROUGH A LINK ON THE HOME PAGE OF THE AMERICAN FUNDS
WEBSITE AT AMERICANFUNDS.COM, FROM THE STATEMENT OF ADDITIONAL INFORMATION OR
FROM YOUR FINANCIAL ADVISER.

REDUCING YOUR CLASS A INITIAL SALES CHARGE

Consistent with the policies described in this prospectus, two or more
retirement plans of an employer or employer's affiliates may combine all of
their American Funds investments to reduce their Class A sales charge. However,
for this purpose, investments representing direct purchases of American Funds
money market funds are excluded. Following are different ways that you may
qualify for a reduced Class A sales charge:

CONCURRENT PURCHASES

Simultaneous purchases of any class of shares of two or more American Funds may
be combined to qualify for a reduced Class A sales charge.

RIGHTS OF ACCUMULATION

You may take into account your accumulated holdings in all share classes of the
American Funds to determine the initial sales charge you pay on each purchase
of Class A shares. Subject to your investment dealer's or recordkeeper's
capabilities, your accumulated holdings will be calculated as the higher of (a)
the current value of your existing holdings or (b) the amount you invested
(excluding capital appreciation) less any withdrawals. Please see the statement
of additional information for details. You should retain any records necessary
to substantiate the historical amounts you have invested. The current value of
existing investments in an American Legacy/(R)/ Retirement Investment Plan may
also be taken into account to determine your Class A sales charge.

STATEMENT OF INTENTION

You may reduce your Class A sales charge by establishing a statement of
intention. A statement of intention allows you to combine all purchases of all
share classes of American Funds non-money market funds you intend to make over
a 13-month period to determine the applicable sales charge; however, purchases
made under a right of

American Funds Target Date Retirement Series / Prospectus
<PAGE>

reinvestment, appreciation of your holdings, and reinvested dividends and
capital gains do not count as purchases made during the statement period. The
market value of your existing holdings eligible to be aggregated as of the day
immediately before the start of the statement period may be credited toward
satisfying the statement. A portion of your account may be held in escrow to
cover additional Class A sales charges that may be due if your total purchases
over the statement period do not qualify you for the applicable sales charge
reduction. Employer-sponsored retirement plans may be restricted from
establishing statements of intention. See "Sales charges" above for more
information.

RIGHT OF REINVESTMENT

Please see the "Sales" section of "Purchase, exchange and sale of shares" above
for information on how to reinvest proceeds from a redemption, dividend payment
or capital gain distribution without a sales charge.

Rollovers from retirement plans to IRAs

Assets from retirement plans may be invested in Class A shares through an IRA
rollover. Rollovers invested in Class A shares from retirement plans will be
subject to applicable sales charges. The following rollovers to Class A shares
will be made without a sales charge:

. rollovers to IRAs from 403(b) plans with Capital Bank and Trust Company as
custodian; and

. rollovers to IRAs that are attributable to American Funds investments, if they
meet all of the following three requirements:

-- the retirement plan from which assets are being rolled over is part of an
American Funds proprietary retirement plan program (such as PlanPremier,
Recordkeeper Direct or Recordkeeper Connect/(R)/) or is a plan whose
participant subaccounts are serviced by American Funds Service Company;

-- the plan's assets were invested in American Funds at the time of
distribution; and

-- the plan's assets are rolled over to an American Funds IRA with Capital Bank
and Trust Company as custodian.

IRA rollover assets that roll over without a sales charge as described above
will not be subject to a contingent deferred sales charge and investment dealers
will be compensated solely with an annual service fee that begins to accrue
immediately. IRA rollover assets that are not attributable to American Funds
investments, as well as future contributions to the IRA, will be subject to
sales charges and the terms and conditions generally applicable to Class A share
investments as described in the prospectus and statement of additional
information if invested in Class A shares.

American Funds Target Date Retirement Series / Prospectus

<PAGE>

TRANSFERS TO IRAS

Transfers to IRAs that are attributable to American Funds investments held in
SIMPLE IRAs, SEPs or SARSEPs will not be subject to a sales charge if invested
in Class A shares.

Plans of distribution

The series has plans of distribution or "12b-1 plans" under which it may finance
activities primarily intended to sell shares, provided the categories of
expenses are approved in advance by the fund's board of directors. The plans
provide for payments, based on annualized percentages of average daily net
assets, of up to .25% for Class A shares, up to 1.00% for Class R-1 and R-2
shares, up to .75% for Class R-3 shares and up to .50% for Class R-4 shares. For
all share classes, up to XX% of these expenses may be used to pay service fees
to qualified dealers for providing certain shareholder services. The amount
remaining for each share class may be used for distribution expenses.

The 12b-1 fees paid by the series, as a percentage of average net assets, for
the previous fiscal year are indicated in the Annual Fund Operating Expenses
table under "Fees and expenses of the fund" for each fund. Since these fees are
paid out of the series' assets or income on an ongoing basis, over time they
will increase the cost and reduce the return of your investment.

Other compensation to dealers

American Funds Distributors, at its expense, currently provides additional
compensation to investment dealers. These payments may be made, at the
discretion of American Funds Distributors, to the top 75 dealers (or their
affiliates) who have sold shares of the American Funds. The level of payments
made to a qualifying firm in any given year will vary and in no case would
exceed the sum of (a) XX% of the previous year's American Funds sales by that
dealer and (b) XX% of American Funds assets attributable to that dealer. For
calendar year 2006, aggregate payments made by American Funds Distributors to
dealers were less than XX% of the assets of the American Funds. Aggregate
payments may also change from year to year. A number of factors will be
considered in determining payments, including the qualifying dealer's sales,
assets and redemption rates, and the quality of the dealer's relationship with
American Funds Distributors. American Funds Distributors makes these payments to
help defray the costs incurred by qualifying dealers in connection with efforts
to educate financial advisers about the American Funds so that they can make
recommendations and provide services that are suitable and meet shareholder
needs. American Funds Distributors will, on an annual basis, determine the
advisability of continuing these payments. American Funds Distributors may also
pay expenses associated with meetings conducted by dealers outside the top 75
firms to facilitate educating financial advisers and shareholders about the
American Funds.

American Funds Target Date Retirement Series / Prospectus
<PAGE>

Distributions and taxes

DIVIDENDS AND DISTRIBUTIONS

Each fund declares dividends from net investment income and distributes the
accrued dividends, which may fluctuate, to shareholders annually in
December. Dividends begin accruing one day after payment for shares is
received by the fund or American Funds Service Company.

Capital gains, if any, are usually distributed in December. When a capital gain
is distributed, the net asset value per share is reduced by the amount of the
payment.

All dividends and capital gain distributions paid to retirement plan
shareholders will be automatically reinvested.

TAXES ON DIVIDENDS AND DISTRIBUTIONS

Dividends and capital gains distributed by each fund to tax-deferred retirement
plan accounts are not taxable currently.

TAXES ON TRANSACTIONS

Exchanges within a tax-deferred retirement plan account will not result in a
capital gain or loss for federal or state income tax purposes. With limited
exceptions, distributions from a retirement plan account are taxable as ordinary
income.

PLEASE SEE YOUR TAX ADVISER FOR MORE INFORMATION.

American Funds Target Date Retirement Series / Prospectus

<PAGE>

[logo - American Funds (r)]

The right choice for the long term/(R)/

FOR SHAREHOLDER American Funds Service Company
SERVICES 800/421-0180
FOR RETIREMENT PLAN Call your employer or plan
SERVICES administrator
FOR DEALER SERVICES American Funds Distributors
800/421-9900
FOR 24 americanfunds.com
-HOUR INFORMATION AmericanFundsRetirement.com

Telephone calls you have with the American Funds
organization may be monitored or recorded for quality
assurance, verification and/or recordkeeping purposes.
By speaking with us on the telephone, you are giving
your consent to such monitoring and recording.
-----------------------------------------------------------------------------------

MULTIPLE TRANSLATIONS This prospectus may be translated into other languages.
If there is any inconsistency or ambiguity as to the meaning of any word or
phrase in a translation, the English text will prevail.

ANNUAL/SEMI-ANNUAL REPORT TO SHAREHOLDERS The shareholder reports contain
additional information about the series, including financial statements,
investment results, portfolio holdings, a discussion of market conditions and
the series' investment strategies, and the independent registered public
accounting firm's report (in the annual report).

STATEMENT OF ADDITIONAL INFORMATION (SAI) AND CODES OF ETHICS The current SAI,
as amended from time to time, contains more detailed information on all aspects
of the series, including the series' financial statements, and is incorporated
by reference into this prospectus. This means that the current SAI, for legal
purposes, is part of this prospectus. The codes of ethics describe the personal
investing policies adopted by the series, the series' investment adviser and its
affiliated companies.

The codes of ethics and current SAI are on file with the Securities and Exchange
Commission (SEC). These and other related materials about the series are
available for review or to be copied at the SEC's Public Reference Room in
Washington, DC (202/551-8090) or on the EDGAR database on the SEC's website at
sec.gov or, after payment of a duplicating fee, via e-mail request to
publicinfo@sec.gov or by writing to the SEC's Public Reference Section, 100 F
Street, NE, Washington, DC 20549. The current SAI and shareholder reports are
also available, free of charge, on americanfunds.com.

HOUSEHOLD MAILINGS Each year you are automatically sent an updated prospectus
and annual and semi-annual reports for the series. You may also occasionally
receive proxy statements for the series. In order to reduce the volume of mail
you receive, when possible, only one copy of these documents will be sent to
shareholders who are part of the same family and share the same household
address.

If you would like to opt out of household-based mailings or receive a
complimentary copy of the current SAI, codes of ethics or annual/semi-annual
report to shareholders, please call American Funds Service Company at
800/421-0180 or write to the Secretary of the fund at 333 South Hope Street, Los
Angeles, California 90071.

[LOGO - recycled bug]

Printed on recycled paper Investment Company File No. XX
RPGEPR-9XX-XXP Litho in USA CGD/X/XX
-------------------------------------------------------------------------------
THE CAPITAL GROUP COMPANIES
American Funds Capital Research and Management Capital
International Capital Guardian Capital Bank and Trust

<PAGE>

AMERICAN FUNDS TARGET DATE RETIREMENT FUND 2010
AMERICAN FUNDS TARGET DATE RETIREMENT FUND 2015
AMERICAN FUNDS TARGET DATE RETIREMENT FUND 2020
AMERICAN FUNDS TARGET DATE RETIREMENT FUND 2025
AMERICAN FUNDS TARGET DATE RETIREMENT FUND 2030
AMERICAN FUNDS TARGET DATE RETIREMENT FUND 2035
AMERICAN FUNDS TARGET DATE RETIREMENT FUND 2040
AMERICAN FUNDS TARGET DATE RETIREMENT FUND 2045
AMERICAN FUNDS TARGET DATE RETIREMENT FUND 2050

EACH A FUND OF AMERICAN FUNDS TARGET DATE RETIREMENT SERIES, INC.

Part B
Statement of Additional Information

DATE

This document is not a prospectus but should be read in conjunction with the
current prospectus of American Funds Target Date Retirement Series (the
"series") dated DATE. You may obtain a prospectus from your financial
adviser or by writing to the series at the following address:

American Funds Target Date Retirement Series
Attention: Secretary
333 South Hope Street
Los Angeles, California 90071
213/486-9200

Shareholders who purchase shares at net asset value through eligible retirement
plans should note that not all of the services or features described below may
be available to them. They should contact their employers for details.

TABLE OF CONTENTS

Item Page no.
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Certain investment limitations and guidelines . . . . . . . . . . .
Description of certain securities and investment techniques . . . .
Fundamental policies and investment restrictions. . . . . . . . . .
Management of the fund . . . . . . . . . . . . . . . . . . . . . .
Execution of portfolio transactions . . . . . . . . . . . . . . . .
Disclosure of portfolio holdings. . . . . . . . . . . . . . . . . .
Price of shares . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxes and distributions . . . . . . . . . . . . . . . . . . . . . .
Purchase and exchange of shares . . . . . . . . . . . . . . . . . .
Sales charges . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales charge reductions and waivers . . . . . . . . . . . . . . . .
Selling shares. . . . . . . . . . . . . . . . . . . . . . . . . . .
Shareholder account services and privileges . . . . . . . . . . . .
General information . . . . . . . . . . . . . . . . . . . . . . . .
Appendix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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CERTAIN INVESTMENT LIMITATIONS AND GUIDELINES

The following limitations and guidelines are considered at the time of purchase,
under normal circumstances, and are based on a percentage of each fund's net
assets unless otherwise noted. This summary is not intended to reflect all of
the funds' investment limitations.

* * * * * *

DESCRIPTION OF CERTAIN SECURITIES AND INVESTMENT TECHNIQUES

The descriptions below are intended to supplement the material in the prospectus
under "Investment objectives, strategies and risks" which provides information
about the series and the underlying funds.

INVESTING TECHNIQUES RELATING TO THE FUNDS IN THE SERIES -- In addition to
its investments in the underlying funds, a portion of each fund's assets,
which will normally be less than 20%, may be held in cash or invested in
high-quality taxable short-term securities of up to one year in maturity.
Such investments may include: (a) obligations of the U.S. Treasury;
(b) obligations of agencies and instrumentalities of the U.S. government;
(c) money market instruments, such as certificates of deposit issued
by domestic banks, corporate commercial paper, and bankers' acceptances and (d)
repurchase agreements.

Each fund may take temporary defensive measures that are inconsistent with its
normal fundamental or non-fundamental investment policies and strategies in
response to adverse market, economic, political, or other conditions as
determined by the adviser. Such measures could include, but are not limited to,
investments in cash (including foreign currency) or cash equivalents, including,
but not limited to, obligations of banks (including certificates of deposit,
bankers' acceptances, time deposits and repurchase agreements), commercial
paper, short-term notes, U.S. Government Securities and related repurchase
agreements. There is no limit on the extent to which each fund may take
temporary defensive measures. In taking such measures, each fund may fail to
achieve its investment objective.

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INVESTMENT TECHNIQUES RELATING TO THE UNDERLYING FUNDS -- Because the following
is a combined summary of investment strategies of all of the underlying funds,
certain matters described herein will only apply to your fund to the extent
it is invested in an underlying fund that engages in such a strategy. Unless
a strategy or policy described below is specifically prohibited by the
investment restrictions explained in the fund's prospectus or "Fundamental
policies and investment restrictions" of this SAI, or by applicable law,
each fund in the series may engage in each of the practices
described below.

The underlying funds may experience difficulty liquidating certain portfolio
securities during significant market declines or periods of heavy redemptions.

EQUITY SECURITIES -- An underlying fund may invest in equity securities. Equity
securities represent an ownership position in a company. Equity securities held
by the underlying fund typically consist of common stocks and may also include
securities with equity conversion or purchase rights. The prices of equity
securities fluctuate based on, among other things, events specific to their
issuers and market, economic and other conditions. The prices of these
securities can be adversely affected by the outcome of financial contracts
(such as derivatives) held by third parties relating to various assets or
indices.

There may be little trading in the secondary market for particular equity
securities, which may adversely affect an underlying fund's ability to value
accurately or dispose of such equity securities. Adverse publicity and
investor perceptions, whether or not based on fundamental analysis, may
decrease the value and/or liquidity of equity securities.

DEBT SECURITIES -- An underlying fund may invest in debt securities. Debt
securities are used by issuers to borrow money. Generally, issuers pay investors
periodic interest and repay the amount borrowed either periodically during the
life of the security and/or at maturity. Some debt securities, such as zero
coupon bonds, do not pay current interest, but are purchased at a discount from
their face values and accrue interest at the applicable coupon rate over a
specified time period. The market prices of debt securities fluctuate depending
on such factors as interest rates, credit quality and maturity. In general,
market prices of debt securities decline when interest rates rise and increase
when interest rates fall. The prices of these securities can be adversely
affected by the outcome of financial contracts (such as derivatives) held by
third parties relating to various assets or indices.

SECURITIES WITH EQUITY AND DEBT CHARACTERISTICS -- An underlying fund may invest
in securities that have a combination of equity and debt characteristics. These
securities may at times behave more like equity than debt and vice versa. Some
types of convertible bonds or preferred stocks automatically convert into common
stocks and some may be subject to redemption at the option of the issuer at a
predetermined price. The prices and yields of nonconvertible preferred stocks
generally move with changes in interest rates and the issuer's credit quality,
similar to the factors affecting debt securities. Certain of these securities
will be treated as debt for fund investment limit purposes.

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Convertible bonds, convertible preferred stocks and other securities may
sometimes be converted, or may automatically convert, into common stocks or
other securities at a stated conversion ratio. These securities, prior to
conversion, may pay a fixed rate of interest or a dividend. Because convertible
securities have both debt and equity characteristics, their value varies in
response to many factors, including the value of the underlying assets, general
market and economic conditions, and convertible market valuations, as well as
changes in interest rates, credit spreads and the credit quality of the issuer.

WARRANTS AND RIGHTS -- An underlying fund may purchase warrants, which may be
issued together with bonds or preferred stocks. Warrants generally entitle the
holder to buy a proportionate amount of common stock at a specified price,
usually higher than the current market price. Warrants may be issued with an
expiration date or in perpetuity. Rights are similar to warrants except that
they normally entitle the holder to purchase common stock at a lower price than
the current market price.

INVESTING IN SMALLER CAPITALIZATION STOCKS -- An underlying fund may invest in
the stocks of smaller capitalization companies (typically companies with market
capitalizations of less than $3.5 billion at the time of purchase). The
investment adviser believes that the issuers of smaller capitalization stocks
often provide attractive investment opportunities. However, investing in smaller
capitalization stocks can involve greater risk than is customarily associated
with investing in stocks of larger, more established companies. For example,
smaller companies often have limited product lines, limited markets or financial
resources, may be dependent for management on one or a few key persons and can
be more susceptible to losses. Also, their securities may be thinly traded (and
therefore have to be sold at a discount from current prices or sold in small
lots over an extended period of time), may be followed by fewer investment
research analysts and may be subject to wider price swings, thus creating a
greater chance of loss than securities of larger capitalization companies.

INVESTING IN PRIVATE COMPANIES -- An underlying fund may invest in companies
that have not publicly offered their securities. Investing in private companies
can involve greater risks than those associated with investing in publicly
traded companies. For example, the securities of a private company may be
subject to the risk that market conditions, developments within the company,
investor perception, or regulatory decisions may delay or prevent the company
from ultimately offering its securities to the public. Furthermore, these
investments are generally considered to be illiquid until a company's public
offering and are often subject to additional contractual restrictions on resale
that would prevent the underlying fund from selling its company shares for
a period of time following the public offering.

Investments in private companies can offer an underlying fund significant
growth opportunities at attractive prices. However these investments can
pose greater risk, and, consequently, there is no guarantee that positive
results can be achieved in the future.

INVESTING IN VARIOUS COUNTRIES -- Investing outside the United States may
involve additional risks caused by, among other things, currency controls and
fluctuating currency values; different accounting, auditing, financial reporting
and legal standards and practices in some countries; changing local, regional
and global economic, political and social conditions; expropriation; changes in
tax policy; greater market volatility; differing securities market structures;
higher transaction costs; and various administrative difficulties, such as
delays in clearing and settling portfolio transactions or in receiving payment
of dividends. However, in the opinion of the

American Funds Target Retirement Series -- Page 4
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investment adviser, investing outside the United States also can reduce certain
portfolio risks due to greater diversification opportunities.

The risks described above may be heightened in connection with investments in
developing countries. Although there is no universally accepted definition, the
investment adviser generally considers a developing country as a country that is
in the earlier stages of its industrialization cycle with a low per capita gross
domestic product ("GDP") and a low market capitalization to GDP ratio relative
to those in the United States and the European Union. Historically, the markets
of developing countries have been more volatile than the markets of developed
countries. An underlying fund may invest in securities of issuers in developing
countries only to a limited extent.

Additional costs could be incurred in connection with an underlying fund's
investment activities outside the United States. Brokerage commissions may be
higher outside the United States, and the fund will bear certain expenses in
connection with its currency transactions. Furthermore, increased custodian
costs may be associated with maintaining assets in certain jurisdictions.

CERTAIN RISK FACTORS RELATED TO DEVELOPING COUNTRIES

CURRENCY FLUCTUATIONS -- An underlying fund's investments may be valued in
currencies other than the U.S. dollar. Certain developing countries'
currencies have experienced and may in the future experience significant
declines against the U.S. dollar. For example, if the U.S dollar
appreciates against foreign currencies, the value of the underlying fund's
securities holdings would generally depreciate and vice versa. Consistent
with its investment objective, an underlying fund may engage in certain
currency transactions to hedge against currency fluctuations. See
"Currency Transactions" below.

GOVERNMENT REGULATION -- The political, economic and social structures of
certain developing countries may be more volatile and less developed than
those in the United States. Certain developing countries lack uniform
accounting, auditing and financial reporting standards, have less
governmental supervision of financial markets than in the United States,
and do not honor legal rights enjoyed in the United States. Certain
governments may be more unstable and present greater risks of
nationalization or restrictions on foreign ownership of local companies.

Repatriation of investment income, capital and the proceeds of sales by
foreign investors may require governmental registration and/or approval in
some developing market countries. While an underlying fund may only invest
in markets where these restrictions are considered acceptable, a country
could impose new or additional repatriation restrictions after the fund's
investment. If this happened, the underlying fund's response might include,
among other things, applying to the appropriate authorities for a waiver of
the restrictions or engaging in transactions in other markets designed to
offset the risks of decline in that country. Such restrictions will be
considered in relation to the underlying fund's liquidity needs and all
other positive and negative factors. Further, some attractive equity
securities may not be available to the underlying fund due to foreign
shareholders already holding the maximum amount legally permissible.

While government involvement in the private sector varies in degree among
developing countries, such involvement may in some cases include government
ownership of companies in certain sectors, wage and price controls or
imposition of trade barriers and other protectionist measures. With respect
to any developing country, there is no

American Funds Target Retirement Series -- Page 5
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guarantee that some future economic or political crisis will not lead to
price controls, forced mergers of companies, expropriation, or creation of
government monopolies to the possible detriment of the underlying fund's
investments.

LESS DEVELOPED SECURITIES MARKETS -- Developing countries may have less
well-developed securities markets and exchanges. These markets have lower
trading volumes than the securities markets of more developed countries.
These markets may be unable to respond effectively to increases in trading
volume. Consequently, these markets may be substantially less liquid than
those of more developed countries, and the securities of issuers located in
these markets may have limited marketability. These factors may make prompt
liquidation of substantial portfolio holdings of an underlying fund
difficult or impossible at times.

SETTLEMENT RISKS -- Settlement systems in developing countries are
generally less well organized than developed markets. Supervisory
authorities may also be unable to apply standards comparable to those in
developed markets. Thus, there may be risks that settlement may be delayed
and that cash or securities belonging to the underlying fund may be in
jeopardy because of failures of or defects in the systems. In particular,
market practice may require that payment be made before receipt of the
security being purchased or that delivery of a security be made before
payment is received. In such cases, default by a broker or bank (the
"counterparty") through whom the transaction is effected might cause the
underlying fund to suffer a loss. An underlying fund will seek, where
possible, to use counterparties whose financial status is such that this
risk is reduced. However, there can be no certainty that the underlying
fund will be successful in eliminating this risk, particularly as
counterparties operating in developing countries frequently lack the
substance or financial resources of those in developed countries. There may
also be a danger that, because of uncertainties in the operation of
settlement systems in individual markets, competing claims may arise with
respect to securities held by or to be transferred to the underlying fund.

INVESTOR INFORMATION -- An underlying fund may encounter problems assessing
investment opportunities in certain developing securities markets in light
of limitations on available information and different accounting, auditing
and financial reporting standards. In such circumstances, the underlying
fund's investment adviser will seek alternative sources of information, and
to the extent the investment adviser may not be satisfied with the
sufficiency of the information obtained with respect to a particular market
or security, the fund will not invest in such market or security.

TAXATION -- Taxation of dividends and capital gains received by
non-residents varies among developing countries and, in some cases, is
comparatively high. In addition, developing countries typically have less
well-defined tax laws and procedures and such laws may permit retroactive
taxation so that an underlying fund could in the future become subject to
local tax liability that it had not reasonably anticipated in conducting
its investment activities or valuing its assets.

LITIGATION -- An underlying fund and its shareholders may encounter
substantial difficulties in obtaining and enforcing judgments against
non-U.S. resident individuals and companies.

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FRAUDULENT SECURITIES -- Securities purchased by an underlying fund may
subsequently be found to be fraudulent or counterfeit, resulting in a loss
to the underlying fund.

U.S. GOVERNMENT OBLIGATIONS -- U.S. government obligations are securities backed
by the full faith and credit of the U.S. government. U.S. government obligations
include the following types of securities:

U.S. TREASURY SECURITIES -- U.S. Treasury securities include direct
obligations of the U.S. Treasury, such as Treasury bills, notes and bonds.
For these securities, the payment of principal and interest is
unconditionally guaranteed by the U.S. government, and thus they are of the
highest possible credit quality. Such securities are subject to variations
in market value due to fluctuations in interest rates, but, if held to
maturity, will be paid in full.

FEDERAL AGENCY SECURITIES BACKED BY "FULL FAITH AND CREDIT" -- The
securities of certain U.S. government agencies and government-sponsored
entities are guaranteed as to the timely payment of principal and interest
by the full faith and credit of the U.S. government. Such agencies and
entities include the Government National Mortgage Association (Ginnie Mae),
the Veterans Administration (VA), the Federal Housing Administration (FHA),
the Export-Import Bank (Exim Bank), the Overseas Private Investment
Corporation (OPIC), the Commodity Credit Corporation (CCC) and the Small
Business Administration (SBA).

OTHER FEDERAL AGENCY OBLIGATIONS -- Additional federal agency securities are
neither direct obligations of, nor guaranteed by, the U.S. government. These
obligations include securities issued by certain U.S. government agencies and
government-sponsored entities. However, they generally involve some form of
federal sponsorship: some operate under a government charter; some are backed by
specific types of collateral; some are supported by the issuer's right to borrow
from the Treasury; and others are supported only by the credit of the issuing
government agency or entity. These agencies and entities include, but are not
limited to: Federal Home Loan Bank, Federal Home Loan Mortgage Corporation
(Freddie Mac), Federal National Mortgage Association (Fannie Mae), Tennessee
Valley Authority and Federal Farm Credit Bank System.

PASS-THROUGH SECURITIES -- An underlying fund may invest in various debt
obligations backed by pools of mortgages or other assets including, but not
limited to, loans on single family residences, home equity loans, mortgages on
commercial buildings, credit card receivables and leases on airplanes or other
equipment. Principal and interest payments made on the underlying asset pools
backing these obligations are typically passed through to investors, net of any
fees paid to any guarantor of the securities. Pass-through securities may have
either fixed or adjustable coupons. These securities include:

"MORTGAGE-BACKED SECURITIES" -- These securities may be issued by U.S.
government agencies and government-sponsored entities, such as Ginnie Mae,
Fannie Mae and Freddie Mac, and by private entities. The payment of
interest and principal on mortgage-backed obligations issued by U.S.
government agencies may be guaranteed by the full faith and credit of the
U.S. government (in the case of Ginnie Mae), or may be guaranteed by the
issuer (in the case of Fannie Mae and Freddie Mac). However, these
guarantees do not apply to the market prices and yields of these
securities, which vary with changes in interest rates.

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Mortgage-backed securities issued by private entities are structured
similarly to those issued by U.S. government agencies. However, these
securities and the underlying mortgages are not guaranteed by any
government agencies. These securities generally are structured with one or
more types of credit enhancement such as insurance or letters of credit
issued by private companies. Mortgage-backed securities generally permit
borrowers to prepay their underlying mortgages. Prepayments can alter the
effective maturity of these instruments.

COLLATERALIZED MORTGAGE OBLIGATIONS (CMOS) -- CMOs are also backed by a
pool of mortgages or mortgage loans, which are divided into two or more
separate bond issues. CMOs issued by U.S. government agencies are backed by
agency mortgages, while privately issued CMOs may be backed by either
government agency mortgages or private mortgages. Payments of principal and
interest are passed through to each bond issue at varying schedules
resulting in bonds with different coupons, effective maturities and
sensitivities to interest rates. Some CMOs may be structured in a way that
when interest rates change, the impact of changing prepayment rates on the
effective maturities of certain issues of these securities is magnified.
CMOs may be less liquid or may exhibit greater price volatility than other
types of mortgage or asset-backed securities.

COMMERCIAL MORTGAGE-BACKED SECURITIES -- These securities are backed by
mortgages on commercial property, such as hotels, office buildings, retail
stores, hospitals and other commercial buildings. These securities may have
a lower prepayment uncertainty than other mortgage-related securities
because commercial mortgage loans generally prohibit or impose penalties on
prepayments of principal. In addition, commercial mortgage-related
securities often are structured with some form of credit enhancement to
protect against potential losses on the underlying mortgage loans. Many of
the risks of investing in commercial mortgage-backed securities reflect the
risks of investing in the real estate securing the underlying mortgage
loans, including the effects of local and other economic conditions on real
estate markets, the ability of tenants to make rental payments and the
ability of a property to attract and retain tenants. Commercial
mortgage-backed securities may be less liquid or exhibit greater price
volatility than other types of mortgage or asset-backed securities.

ASSET-BACKED SECURITIES -- These securities are backed by other assets such
as credit card, automobile or consumer loan receivables, retail installment
loans, or participations in pools of leases. Credit support for these
securities may be based on the underlying assets and/or provided through
credit enhancements by a third party. The values of these securities are
sensitive to changes in the credit quality of the underlying collateral,
the credit strength of the credit enhancement, changes in interest rates
and at times the financial condition of the issuer. Some asset-backed
securities also may receive prepayments that can change their effective
maturities.

"IOs" and "POs" are issued in portions or tranches with varying maturities and
characteristics. Some tranches may only receive the interest paid on the
underlying mortgages (IOs) and others may only receive the principal payments
(POs). The values of IOs and POs are extremely sensitive to interest rate
fluctuations and prepayment rates, and IOs are also subject to the risk of early
repayment of the underlying mortgages that will substantially reduce or
eliminate interest payments.

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CURRENCY TRANSACTIONS -- An underlying fund may purchase and sell currencies to
facilitate securities transactions and enter into forward currency contracts to
protect against changes in currency exchange rates. A forward currency contract
is an obligation to purchase or sell a specific currency at a future date, which
may be any fixed number of days from the date of the contract agreed upon by the
parties, at a price set at the time of the contract. Forward currency contracts
entered into by the fund will involve the purchase or sale of one currency
against the U.S. dollar. While entering into forward currency transactions could
minimize the risk of loss due to a decline in the value of the hedged currency,
it could also limit any potential gain that may result from an increase in the
value of the currency. Such underlying fund will not generally attempt to
protect against all potential changes in exchange rates. The underlying fund
will segregate liquid assets that will be marked to market daily to meet its
forward contract commitments to the extent required by the Securities and
Exchange Commission.

Certain provisions of the Internal Revenue Code may affect the extent to which
an underlying fund may enter into forward contracts. Such transactions also may
affect the character and timing of income, gain or loss recognized by the fund
for U.S. federal income tax purposes.

FORWARD COMMITMENT, WHEN ISSUED AND DELAYED DELIVERY TRANSACTIONS -- An
underlying fund may enter into commitments to purchase or sell securities at a
future date. When an underlying fund agrees to purchase such securities, it
assumes the risk of any decline in value of the security from the date of the
agreement. If the other party to such a transaction fails to deliver or pay for
the securities, the fund could miss a favorable price or yield opportunity, or
could experience a loss.

An underlying fund will not use these transactions for the purpose of leveraging
and will segregate liquid assets that will be marked to market daily in an
amount sufficient to meet its payment obligations in these transactions.
Although these transactions will not be entered into for leveraging purposes, to
the extent the underlying fund's aggregate commitments in connection with these
transactions exceed its segregated assets, the underlying fund temporarily could
be in a leveraged position (because it may have an amount greater than its net
assets subject to market risk). Should market values of the underlying fund's
portfolio securities decline while the fund is in a leveraged position, greater
depreciation of its net assets would likely occur than if it were not in such a
position. An underlying fund will not borrow money to settle these transactions
and, therefore, will liquidate other portfolio securities in advance of
settlement if necessary to generate additional cash to meet its obligations.
After a transaction is entered into, the fund may still dispose of or
renegotiate the transaction. Additionally, prior to receiving delivery of
securities as part of a transaction, the fund may sell such securities.

REPURCHASE AGREEMENTS -- An underlying fund may enter into repurchase agreements
under which the fund buys a security and obtains a simultaneous commitment from
the seller to repurchase the security at a specified time and price. Repurchase
agreements permit an underlying fund to maintain liquidity and earn income over
periods of time as short as overnight. The seller must maintain with the
underlying fund's custodian collateral equal to at least 100% of the repurchase
price, including accrued interest, as monitored daily by the investment adviser.
An underlying fund will only enter into repurchase agreements involving
securities in which it could otherwise invest and with selected banks and
securities dealers whose financial condition is monitored by the investment
adviser. If the seller under the repurchase agreement defaults, the underlying
fund may incur a loss if the value of the collateral securing the repurchase
agreement has declined and may incur disposition costs in connection with
liquidating the collateral. If

American Funds Target Retirement Series -- Page 9
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bankruptcy proceedings are commenced with respect to the seller, realization of
the collateral by the underlying fund may be delayed or limited.

An underlying fund may also enter into reverse repurchase agreements and "roll"
transactions. A reverse repurchase agreement involves the sale of a security by
a fund and its agreement to repurchase the security at a specified time and
price. A "roll" transaction involves the sale of mortgage-backed or other
securities together with a commitment to purchase similar, but not identical,
securities at a later date. An underlying fund assumes the risk of price and
yield fluctuations during the time of the commitment. Such fund will segregate
liquid assets that will be marked to market daily in an amount sufficient to
meet its payment obligations under "roll" transactions and reverse repurchase
agreements with broker-dealers (no collateral is required for reverse repurchase
agreements with banks).

INFLATION-INDEXED BONDS -- An underlying fund may invest in inflation-indexed
bonds issued by governments, their agencies or instrumentalities and
corporations. The principal value of this type of bond is adjusted in response
to changes in the level of the consumer price index. The interest rate is fixed
at issuance as a percentage of this adjustable principal. The actual interest
income may therefore both rise and fall as the level of the consumer price index
rises and falls. In particular, in a period of deflation the interest income
would fall. While the interest income may adjust upward or downward without
limit in response to changes in the consumer price index, the principal has a
floor at par, meaning that the investor receives at least the par value at
redemption.

Repayment of the original bond principal upon maturity (as adjusted for
inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds,
even during a period of deflation. However, the current market value of the
bonds is not guaranteed and will fluctuate.

MATURITY -- The investment adviser seeks to anticipate movements in interest
rates and may adjust the maturity distribution of an underlying fund's
portfolio accordingly. Keeping in mind the underlying fund's objective, the
investment adviser may increase the underlying fund's exposure to price
volatility when it appears likely to increase current income without undue
risk of capital losses. The investment adviser will consider the impact on
effective maturity of potential changes in the financial condition of issuers
and in market interest rates in making investment selections for the fund.
Under normal market conditions, longer term securities yield more than
shorter term securities, but are subject to greater price fluctuations.

ADJUSTMENT OF MATURITIES -- The investment adviser seeks to anticipate movements
in interest rates and may adjust the maturity distribution of the portfolio
accordingly, keeping in mind an underlying fund's objectives.

Cash and cash equivalents may be denominated in U.S. dollars, non-U.S.
currencies or multinational currency units.

REINSURANCE RELATED NOTES AND BONDS -- An underlying fund may invest in
reinsurance related notes and bonds. These instruments, which are typically
issued by special purpose reinsurance companies, transfer an element of
insurance risk to the note or bond holders. For example, such a note or bond
could provide that the reinsurance company would not be required to repay all or
a portion of the principal value of the note or bond if losses due to a
catastrophic event under the policy (such as a major hurricane) exceed certain
dollar thresholds. Consequently, an underlying fund may lose the entire amount
of its investment in such bonds or notes if such an event occurs

American Funds Target Retirement Series -- Page 10
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and losses exceed certain dollar thresholds. In this instance, investors would
have no recourse against the insurance company. These instruments may be issued
with fixed or variable interest rates and rated in a variety of credit quality
categories by the rating agencies.

INVERSE FLOATING RATE NOTES -- An underlying fund may invest to a very limited
extent (no more than 1.5% of its assets) in inverse floating rate notes (a type
of derivative instrument). These notes have rates that move in the opposite
direction of prevailing interest rates. A change in prevailing interest rates
will often result in a greater change in the instruments' interest rates. As a
result, these instruments may have a greater degree of volatility than other
types of interest-bearing securities.

VARIABLE AND FLOATING RATE OBLIGATIONS -- The interest rates payable on certain
securities in which an underlying fund may invest may not be fixed but may
fluctuate based upon changes in market rates or credit ratings. Variable and
floating rate obligations bear coupon rates that are adjusted at designated
intervals, based on the then current market rates of interest or credit ratings.
The rate adjustment features tend to limit the extent to which the market value
of the obligations will fluctuate.

Lower rated debt securities, rated Ba or below by Moody's and/or BB or below by
S&P or unrated but determined to be of equivalent quality, are described by the
rating agencies as speculative and involve greater risk of default or price
changes due to changes in the issuer's creditworthiness than higher rated debt
securities, or they may already be in default. The market prices of these
securities may fluctuate more than higher quality securities and may decline
significantly in periods of general economic difficulty. It may be more
difficult to dispose of, and to determine the value of, lower rated debt
securities.

Certain additional risk factors relating to debt securities are discussed below:

SENSITIVITY TO INTEREST RATE AND ECONOMIC CHANGES -- Debt securities may be
sensitive to economic changes, political and corporate developments, and
interest rate changes. In addition, during an economic downturn or
substantial period of rising interest rates, issuers that are highly
leveraged may experience increased financial stress that would adversely
affect their ability to meet projected business goals, to obtain additional
financing and to service their principal and interest payment obligations.
Periods of economic change and uncertainty also can be expected to result
in increased volatility of market prices and yields of certain debt
securities.

PAYMENT EXPECTATIONS -- Debt securities may contain redemption or call
provisions. If an issuer exercises these provisions in a lower interest
rate market, the fund would have to replace the security with a lower
yielding security, resulting in decreased income to investors. If the
issuer of a debt security defaults on its obligations to pay interest or
principal or is the subject of bankruptcy proceedings, an underlying fund
may incur losses or expenses in seeking recovery of amounts owed to it.

LIQUIDITY AND VALUATION -- There may be little trading in the secondary
market for particular debt securities, which may affect adversely an
underlying fund's ability to value accurately or dispose of such debt
securities. Adverse publicity and investor perceptions, whether or not
based on fundamental analysis, may decrease the value and/or liquidity of
debt securities.

American Funds Target Retirement Series -- Page 11
<PAGE>

The investment adviser attempts to reduce the risks described above through
diversification of an underlying fund's portfolio and by credit analysis of each
issuer, as well as by monitoring broad economic trends and corporate and
legislative developments, but there can be no assurance that it will be
successful in doing so.

DEPOSITARY RECEIPTS - ADRs, in registered form, are designed for use in the U.S.
securities markets and are generally dollar denominated. EDRs, in bearer form,
are designed for use in the European securities markets and may be dollar
denominated. GDRs, in bearer form, primarily are designed for use in the
European and the U.S. securities markets, and may be dollar denominated.
Depositary receipts represent and may be converted into the underlying foreign
security.

OPTIONS ON U.S. TREASURY SECURITIES - An underlying fund may purchase put and
call options on U.S. Treasury securities ("Treasury securities"). A put (call)
option gives the fund as purchaser of the option the right (but not the
obligation) to sell (buy) a specified amount of Treasury securities at the
exercise price until the expiration of the option. The value of a put (call)
option on Treasury securities generally increases (decreases) with an increase
(decrease) in prevailing interest rates. Accordingly, the underlying fund would
purchase puts (calls) in anticipation of, or to protect against, an increase in
interest rates. These options are listed on an exchange or traded
over-the-counter ("OTC options"). Exchange-traded options have standardized
exercise prices and expiration dates; OTC options are two-party contracts with
negotiated exercise prices and expiration dates. OTC options differ from
exchange-traded options in that OTC options are transacted with dealers directly
and not through a clearing corporation (which guarantees performance).
Consequently, there is a risk of non-performance by the dealer. Since no
exchange is involved, OTC options are valued on the basis of a quote provided by
the dealer. In the case of OTC options, there can be no assurance that a liquid
secondary market will exist for any particular option at any specific time.

LOAN PARTICIPATIONS AND ASSIGNMENTS -- Loan participations are loans or other
direct debt instruments that are interests in amounts owed by a corporate,
governmental or other borrower to another party. They may represent amounts owed
to lenders or lending syndicates to suppliers of goods or services, or to other
parties. An underlying fund may have the right to receive payments of principal,
interest and any fees to which it is entitled only from the lender selling the
participation and only upon receipt by the lender of the payments from the
borrower. In connection with purchasing participations, an underlying fund
generally will have no right to enforce compliance by the borrower with the
terms of the loan agreement relating to the loan, nor any rights of set-off
against the borrower, and the underlying fund may not directly benefit from any
collateral supporting the loan in which it has purchased the participation. As a
result, the underlying fund will be subject to the credit risk of both the
borrower and the lender that is selling the participation. In the event of the
insolvency of the lender selling a participation, a fund may be treated as a
general creditor of the lender and may not benefit from any set-off between the
lender and the borrower.

When an underlying fund purchases assignments from lenders, it acquires direct
rights against the borrower on the loan. However, because assignments are
arranged through private negotiations between potential assignees and potential
assignors, the rights and obligations acquired by an underlying fund as the
purchaser of an assignment may differ from, and be more limited than, those held
by the assigning lender. Investments in loan participations and assignments
present the possibility that the underlying fund could be held liable as a
co-lender under emerging legal theories of lender liability. In addition, if the
loan is foreclosed, the

American Funds Target Retirement Series -- Page 12
<PAGE>

underlying fund could be part owner of any collateral and could bear the costs
and liabilities of owning and disposing of the collateral. Such underlying fund
anticipates that loan participations could be sold only to a limited number of
institutional investors. In addition, some loan participations and assignments
may not be rated by major rating agencies and may not be protected by the
securities laws.

REAL ESTATE INVESTMENT TRUSTS -- An underlying fund may invest in securities
issued by real estate investment trusts (REITs), which primarily invest in real
estate or real estate-related loans. Equity REITs own real estate properties,
while mortgage REITs hold construction, development and/or long-term mortgage
loans. The values of REITs may be affected by changes in the value of the
underlying property of the trusts, the creditworthiness of the issuer, property
taxes, interest rates, tax loans and regulatory requirements, such as those
relating to the environment. Both types of REITs are dependent upon management
skill and the cash flows generated by their holdings, the real estate market in
general and the possibility of failing to qualify for any applicable
pass-through tax treatment or failing to maintain any applicable exemptive
status afforded under relevant laws.

CASH AND CASH EQUIVALENTS -- These include (a) commercial paper (for example,
short-term notes with maturities typically up to 12 months in length issued by
corporations, governmental bodies or bank/corporation sponsored conduits
(asset-backed commercial paper)) (b) short-term bank obligations (for example,
certificates of deposit, bankers' acceptances (time drafts on a commercial bank
where the bank accepts an irrevocable obligation to pay at maturity)) or bank
notes, (c) savings association and savings bank obligations (for example, bank
notes and certificates of deposit issued by savings banks or savings
associations), (d) securities of the U.S. government, its agencies or
instrumentalities that mature, or may be redeemed, in one year or less, and (e)
corporate bonds and notes that mature, or that may be redeemed, in one year or
less.

4(2) COMMERCIAL PAPER -- An underlying fund may purchase commercial paper issued
pursuant to Section 4(2) of the Securities Act of 1933 (the "1933 Act"). 4(2)
commercial paper has substantially the same price and liquidity characteristics
as commercial paper generally, except that the resale of 4(2) commercial paper
is limited to the institutional investor marketplace. Such a restriction on
resale makes 4(2) commercial paper technically a restricted security under the
1933 Act. In practice, however, 4(2) commercial paper can be resold as easily as
any other unrestricted security held by the fund. Accordingly, 4(2) commercial
paper has been determined to be liquid under procedures adopted by the fund's
board of directors.

LOANS OF PORTFOLIO SECURITIES -- An underlying fund is authorized to lend
portfolio securities to selected securities dealers or other institutional
investors whose financial condition is monitored by the investment adviser. The
borrower must maintain with the series' custodian collateral consisting of cash,
cash equivalents or U.S. government securities equal to at least 100% of the
value of the borrowed securities, plus any accrued interest. The investment
adviser will monitor the adequacy of the collateral on a daily basis. An
underlying fund may at any time call a loan of its portfolio securities and
obtain the return of the loaned securities. Such underlying fund will receive
any interest paid on the loaned securities and a fee or a portion of the
interest earned on the collateral. Such underlying fund will limit its loans of
portfolio securities to an aggregate of XX% of the value of its total assets,
measured at the time any such loan is made.

RESTRICTED OR ILLIQUID SECURITIES -- An underlying fund may purchase securities
subject to restrictions on resale. Restricted securities may only be sold
pursuant to an exemption from

American Funds Target Retirement Series -- Page 13
<PAGE>

registration under the Securities Act of 1933 (the "1933 Act"), or in a
registered public offering. Where registration is required, the holder of a
registered security may be obligated to pay all or part of the registration
expense and a considerable period may elapse between the time it decides to seek
registration and the time it may be permitted to sell a security under an
effective registration statement. Difficulty in selling such securities may
result in a loss to the underlying fund or cause it to incur additional
administrative costs.

Securities (including restricted securities) not actively traded will be
considered illiquid unless they have been specifically determined to be liquid
under procedures adopted by the underlying fund's board of directors, taking
into account factors such as the frequency and volume of trading, the commitment
of dealers to make markets and the availability of qualified investors, all of
which can change from time to time. An underlying fund may incur certain
additional costs in disposing of illiquid securities.

INVESTMENTS IN REGISTERED OPEN-END INVESTMENT COMPANIES AND UNIT INVESTMENT
TRUSTS -- An underlying fund may not purchase securities of any registered
open-end investment company or unit investment trust.

* * * * * *

FUNDAMENTAL POLICIES AND INVESTMENT RESTRICTIONS

FUNDAMENTAL POLICIES -- The series has adopted the following fundamental
policies and investment restrictions, which may not be changed without approval
by holders of a majority of its outstanding shares. Such majority is defined in
the Investment Company Act of 1940, as amended (the "1940 Act"), as the vote of
the lesser of (a) 67% or more of the outstanding voting securities present at a
shareholder meeting, if the holders of more than 50% of the outstanding voting
securities are present in person or by proxy, or (b) more than 50% of the
outstanding voting securities. All percentage limitations are considered at the
time securities are purchased and are based on the fund's net assets unless
otherwise indicated. None of the following investment restrictions involving a
maximum percentage of assets will be considered violated unless the excess
occurs immediately after, and is caused by, an acquisition by the fund.

Each fund in the series may not:

1. Act as underwriter of securities issued by other persons.

2. Borrow money in excess of 33-1/3% of the value of its total assets (not
including the amount borrowed) at the time the borrowing is made.

3. Buy or sell real estate in the ordinary course of business; however, the
fund may invest in securities secured by real estate or interests therein or
issued by companies, including real estate investment trusts, which invest in
real estate or interests therein.

4. Purchase or deal in commodities or commodity contracts in the ordinary
course of its business; provided, however, that this restriction shall not
prohibit the fund from purchasing, selling or holding foreign currencies or
entering into forward foreign currency contracts.

American Funds Target Retirement Series -- Page 14
<PAGE>

5. Lend any security or make any other loan if, as a result, more than 15% of
its total assets would be lent to third parties, but this limitation does not
apply to purchases of debt securities or to repurchase agreements.

6. Purchase securities of any company for the purpose of exercising control or
management.

7. Purchase any securities of any issuer, except the U.S. government (or its
instrumentalities) or securities issued by investment companies, if immediately
after and as a result of such investment (1) the market value of the securities
of such other issuer shall exceed 5% of the market value of the total assets of
the fund, or (2) the fund shall own more than 10% of the outstanding voting
securities of such issuer, provided that this restriction shall apply only as to
75% of the fund's total assets.

8. Purchase any securities (other than securities issued or guaranteed by the
U.S. government or its agencies or instrumentalities or securities issued by
investment companies) if immediately after and as a result of such purchase 25%
or more of the market value of the total assets of the fund would be invested in
securities of companies in any one industry.

9. Issue senior securities except as permitted by the 1940 Act, as amended, or
any rule thereunder, any SEC or SEC staff interpretation thereof or any
exemptions therefrom, which may be granted by the SEC.

American Funds Target Retirement Series -- Page 15
<PAGE>

MANAGEMENT OF THE FUND

BOARD OF DIRECTORS AND OFFICERS

"INDEPENDENT" DIRECTORS/1/

NUMBER OF
NAME, AGE AND PORTFOLIOS/3/
POSITION WITH FUND PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS/4/ HELD
(YEAR FIRST ELECTED/2/) DURING PAST FIVE YEARS BY DIRECTOR BY DIRECTOR
-----------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------

"INTERESTED" DIRECTOR/5/

PRINCIPAL OCCUPATION(S)
DURING PAST FIVE YEARS
AND POSITIONS NUMBER OF
NAME, AGE AND HELD WITH AFFILIATED ENTITIES PORTFOLIOS/3/
POSITION WITH FUND OR THE PRINCIPAL UNDERWRITER OVERSEEN OTHER DIRECTORSHIPS/4/ HELD
(YEAR FIRST ELECTED/2/) OF THE FUND BY DIRECTOR BY DIRECTOR
-----------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------

OTHER OFFICERS/6/

NAME, AGE AND PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS
POSITION WITH FUND AND POSITIONS HELD WITH AFFILIATED ENTITIES
(YEAR FIRST OR THE PRINCIPAL UNDERWRITER OF THE FUND
ELECTED/2/)
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------

1 An "independent" director refers to a director who is not an "interested
person" within the meaning of the 1940 Act.
2 Directors and officers of the series serve until their resignation, removal or
retirement.
3 Funds managed by Capital Research and Management Company, including the
American Funds, American Funds Insurance Series,(R) which serves as the
underlying investment vehicle for certain variable insurance contracts, and
Endowments, whose shareholders are limited to certain nonprofit organizations.
4 This includes all directorships (other than those in the American Funds) that
are held by each director as a director of a public company or a registered
investment company.
5 "Interested persons," within the meaning of the 1940 Act, on the basis of
their affiliation with the series' investment adviser, Capital Research and
Management Company, or affiliated entities (including the fund's principal
underwriter).
6 All of the officers listed are officers and/or directors/trustees of one or
more of the other funds for which Capital Research and Management Company
serves as investment adviser.

THE ADDRESS FOR ALL DIRECTORS AND OFFICERS OF THE FUND IS 333 SOUTH HOPE STREET,
55TH FLOOR, LOS ANGELES, CALIFORNIA 90071, ATTENTION: FUND SECRETARY.

American Funds Target Retirement Series -- Page 16
<PAGE>

FUND SHARES OWNED BY DIRECTORS AS OF DECEMBER 31, 2005

AGGREGATE DOLLAR RANGE/1/
OF SHARES
OWNED IN ALL FUNDS
IN THE AMERICAN FUNDS
DOLLAR RANGE/1/ OF FUND FAMILY OVERSEEN
NAME SHARES OWNED BY DIRECTOR
-------------------------------------------------------------------------------

"INDEPENDENT" DIRECTORS
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
"INTERESTED" DIRECTOR
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------

1 Ownership disclosure is made using the following ranges: None; $1 - $10,000;
$10,001 - $50,000; $50,001 - $100,000; and Over $100,000. The amounts listed
for "interested" directors include shares owned through The Capital Group
Companies, Inc. retirement plan and 401(k) plan.

DIRECTOR COMPENSATION -- No compensation is paid by the series to any officer or
director who is a director, officer or employee of the investment adviser or its
affiliates. The series typically pays each independent director an annual fee of
$XX. If the aggregate annual fees paid to an independent director by all funds
advised by the investment adviser is less than $XX, that independent director
would be eligible for a $XX alternative fee. This alternative fee is paid by
those funds for which the independent director serves as a director on a
pro-rata basis according to each fund's relative share of the annual fees that
it would typically pay. The alternative fee reflects the significant time and
labor commitment required for a director to oversee even one fund. An
independent director who is chairman of the board (an "independent chair") also
receives an additional annual fee of $XX, (paid in equal portions by the series
and the other funds whose boards and committees typically meet jointly with
those of the fund). The series pays to its independent chair an attendance fee
(as described below) for each meeting of a committee of the board of directors
attended as a non-voting ex-officio member.

In addition, the series generally will pay to independent directors fees of (a)
$XX for each board of directors meeting attended and (b) $XX for each meeting
attended as a member of a committee of the board of directors (or $XX for each
joint meeting of committees of the boards of American Balanced Fund, Inc.,
Fundamental Investors, Inc., The Growth Fund of America, Inc. and The Income
Fund of America, Inc.).

Independent directors also receive attendance fees of (a) $XX for each director
seminar or information session organized by the investment adviser, (b) $XX for
each joint audit committee meeting with all other audit committees of funds
advised by the investment adviser and (c) $XX for each meeting of the board or
committee chairs of other funds advised by the investment adviser. The series
and the other funds served by each independent director each pay an equal
portion of these attendance fees.

The nominating committee of the board of directors, a committee comprised
exclusively of independent directors, reviews director compensation
periodically, and typically recommends adjustments every other year. In making
its recommendations, the nominating committee considers a number of factors,
including operational, regulatory and other developments affecting

American Funds Target Retirement Series -- Page 17
<PAGE>

the complexity of the board's oversight obligations, as well as comparative
industry data. (In lieu of meeting attendance fees, members of the proxy
committee receive an annual retainer fee of $XX from the series if they serve as
a member of four proxy committees, or $XX if they serve as a member of two proxy
committees, meeting jointly.)

No pension or retirement benefits are accrued as part of series expenses.
Independent directors may elect, on a voluntary basis, to defer all or a portion
of their fees through a deferred compensation plan in effect for the series. The
series also reimburses certain expenses of the independent directors.

As of XX, 2007, the officers and directors of the series and their families, as
a group, owned beneficially or of record less than 1% of the outstanding shares
of the series.

SERIES ORGANIZATION AND THE BOARD OF DIRECTORS -- The series, an open-end,
diversified management investment company, was organized as a Maryland
corporation on XX, 2006. Although the board of directors has delegated
day-to-day oversight to the investment adviser, all series operations are
supervised by its board, which meets periodically and performs duties required
by applicable state and federal laws.

Under Maryland law, the business affairs of a corporation are managed under the
direction of the board of directors, and all powers of the corporation are
exercised by or under the authority of the board except as reserved to the
shareholders by law or the corporation's charter or by-laws. Maryland law
requires each director to perform his/her duties as a director, including
his/her duties as a member of any board committee on which he/she serves, in
good faith, in a manner he/she reasonably believes to be in the best interest of
the series, and with the care that an ordinarily prudent person in a like
position would use under similar circumstances.

Members of the board who are not employed by the investment adviser or its
affiliates are paid certain fees for services rendered to the series as
described above. They may elect to defer all or a portion of these fees through
a deferred compensation plan in effect for the series.

The series currently consists of separate funds which have separate assets and
liabilities, and invest in separate investment portfolios. The board of
directors may create additional funds in the future. Income, direct liabilities
and direct operating expenses of a fund will be allocated directly to that fund
and general liabilities and expenses of the series will be allocated among the
funds in proportion to the total net assets of each fund.

Each fund has several different classes of shares, consisting of Class A, R-1,
R-2, R-3, R-4 and R-5 shares. Shares of each class represent an interest in the
same investment portfolio. Each class has pro rata rights as to voting,
redemption, dividends and liquidation, except that each class bears different
distribution expenses and may bear different transfer agent fees and other
expenses properly attributable to the particular class as approved by the board
of directors and set forth in the series' rule 18f-3 Plan. Each class'
shareholders have exclusive voting rights with respect to the respective class'
rule 12b-1 plans adopted in connection with the distribution of shares and on
other matters in which the interests of one class are different from interests
in another class. Shares of each class of the series vote together on matters
that affect all classes in substantially the same manner. Each class votes as a
class on matters that affect that class alone.

American Funds Target Retirement Series -- Page 18
<PAGE>

The series does not hold annual meetings of shareholders. However, significant
matters that require shareholder approval, such as certain elections of board
members or a change in a fundamental investment policy, will be presented to
shareholders at a meeting called for such purpose. Shareholders have one vote
per share owned. At the request of the holders of at least 10% of the shares,
the series will hold a meeting at which any member of the board could be removed
by a majority vote.

The series' articles of incorporation and by-laws as well as separate
indemnification agreements that the series has entered into with independent
directors provide in effect that, subject to certain conditions, the series will
indemnify its officers and directors against liabilities or expenses actually
and reasonably incurred by them relating to their service to the series.
However, directors are not protected from liability by reason of their willful
misfeasance, bad faith, gross negligence or reckless disregard of the duties
involved in the conduct of their office.

Certain directors and officers of the series may also serve in
similar positions with some of the underlying funds. Thus, if the interests of
one of the funds and the underlying funds were ever to diverge, it is possible
that a conflict of interest could arise and affect how the directors and
officers fulfill their fiduciary duties to that fund. The series has been
structured to minimize these concerns. However, conceivably, a situation could
occur where proper action for one of the funds could be adverse to the interests
of an underlying fund, or the reverse. If such a possibility arises, the
directors and officers of the affected funds and Capital Research and Management
Company, will carefully analyze the situation and take all steps they believe
reasonable to minimize and, where possible, eliminate the potential conflict.

COMMITTEES OF THE BOARD OF DIRECTORS -- The series has an audit committee
comprised of XX, none of whom is an "interested person" of the series within the
meaning of the 1940 Act. The committee provides oversight regarding the series'
accounting and financial reporting policies and practices, its internal controls
and the internal controls of the series' principal service providers. The
committee acts as a liaison between the series' independent registered public
accounting firm and the full board of directors.

The series has a contracts committee comprised of XX, none of whom is an
"interested person" of the series within the meaning of the 1940 Act. The
committee's principal function is to request, review and consider the
information deemed necessary to evaluate the terms of certain agreements between
the Series and its investment adviser or the investment adviser's affiliates,
such as the Investment Advisory and Service Agreement, Principal Underwriting
Agreement, Administrative Services Agreement and Plans of Distribution adopted
pursuant to rule 12b-1 under the 1940 Act, that the series may enter into, renew
or continue, and to make its recommendations to the full board of directors on
these matters.

The series has a nominating committee comprised of XX, none of whom is an
"interested person" of the series within the meaning of the 1940 Act. The
committee periodically reviews such issues as the board's composition,
responsibilities, committees, compensation and other relevant issues, and
recommends any appropriate changes to the full board of directors. The committee
also evaluates, selects and nominates independent director candidates to the
full board of directors. While the committee normally is able to identify from
its own and other resources an ample number of qualified candidates, it will
consider shareholder suggestions of persons to be considered as nominees to fill
future vacancies on the board. Such suggestions must be sent in writing to the
nominating committee of the series, addressed to the series' secretary, and must
be accompanied by complete biographical and occupational data on the

American Funds Target Retirement Series -- Page 19
<PAGE>

prospective nominee, along with a written consent of the prospective nominee for
consideration of his or her name by the committee.

PROXY VOTING PROCEDURES AND GUIDELINES -- The series and its investment adviser
have adopted Proxy Voting Guidelines (the "Guidelines") with respect to voting
proxies of securities held by the funds, other American Funds, Endowments,
American Funds Insurance Series and American Funds Target Date Retirement
Series. Because the funds within the series will principally invest in the
underlying funds, it is unlikely that they will hold voting securities other
than shares of the underlying funds. If an underlying fund has a shareholder
meeting, the series normally would vote their shares in the underlying fund in
the same proportion as the votes of the other shareholders of the underlying
fund to avoid any potential for a conflict of interest. Accordingly, although
the Guidelines have been adopted by each fund in the series, the following
discussion relates principally to proxy voting for the underlying funds.

Certain American Funds have established separate proxy voting committees that
vote proxies or delegate to a voting officer the authority to vote on behalf of
those funds. Proxies for all other funds are voted by a committee of the
investment adviser under authority delegated by those funds' boards. Therefore,
if more than one fund invests in the same company, they may vote differently on
the same proposal.

All U.S. proxies are voted. Non-U.S. proxies also are voted, provided there is
sufficient time and information available. After a proxy is received, the
investment adviser prepares a summary of the proposals in the proxy. A
discussion of any potential conflicts of interest is also included in the
summary. After reviewing the summary, one or more research analysts familiar
with the company and industry make a voting recommendation on the proxy
proposals. A second recommendation is made by a proxy coordinator (a senior
investment professional) based on the individual's knowledge of the Guidelines
and familiarity with proxy-related issues. The proxy summary and voting
recommendations are then sent to the appropriate proxy voting committee for the
final voting decision.

The analyst and proxy coordinator making voting recommendations are responsible
for noting any potential material conflicts of interest. One example might be
where a director of one or more American Funds is also a director of a company
whose proxy is being voted. In such instances, proxy voting committee members
are alerted to the potential conflict. The proxy voting committee may then elect
to vote the proxy or seek a third-party recommendation or vote of an ad hoc
group of committee members.

The Guidelines, which have been in effect in substantially their current form
for many years, provide an important framework for analysis and decision-making.
However, they are not exhaustive and do not address all potential issues. The
Guidelines provide a certain amount of flexibility so that all relevant facts
and circumstances can be considered in connection with every vote. As a result,
each proxy received is voted on a case-by-case basis considering the specific
circumstances of each proposal. The voting process reflects the funds'
understanding of the company's business, its management and its relationship
with shareholders over time.

Information regarding how the series and each underlying fund voted proxies
relating to portfolio securities during the 12-month period ended June 30 of
each year will be available on or about September 1 of each year (a) without
charge, upon request by calling American Funds Service Company at 800/421-0180,
(b) on the American Funds website at americanfunds.com and (c) on
the SEC's website at sec.gov and/or the American Funds retirement website.

American Funds Target Retirement Series -- Page 20
<PAGE>

The following summary sets forth the general positions of the American Funds,
Endowments, American Funds Insurance Series, American Funds Target Date
Retirement Series and the investment adviser on various proposals. A copy of the
full Guidelines is available upon request, free of charge, by calling American
Funds Service Company at 800/421-0180 or visiting the American Funds website
and/or the American Funds retirement website.

DIRECTOR MATTERS -- The election of a company's slate of nominees for
director is generally supported. Votes may be withheld for some or all of
the nominees if this is determined to be in the best interest of
shareholders. Separation of the chairman and CEO positions may also be
supported. Typically, proposals to declassify the board (elect all
directors annually) are supported based on the belief that this increases
the directors' sense of accountability to shareholders.

SHAREHOLDER RIGHTS -- Proposals to repeal an existing poison pill, to
provide for confidential voting and to provide for cumulative voting are
usually supported. Proposals to eliminate the right of shareholders to act
by written consent or to take away a shareholder's right to call a special
meeting are not typically supported.

COMPENSATION AND BENEFIT PLANS -- Option plans are complicated, and many
factors are considered in evaluating a plan. Each plan is evaluated based
on protecting shareholder interests and a knowledge of the company and its
management. Considerations include the pricing (or repricing) of options
awarded under the plan and the impact of dilution on existing shareholders
from past and future equity awards. Compensation packages should be
structured to attract, motivate and retain existing employees and qualified
directors; however, they should not be excessive.

ROUTINE MATTERS -- The ratification of auditors, procedural matters
relating to the annual meeting and changes to company name are examples of
items considered routine. Such items are generally voted in favor of
management's recommendations unless circumstances indicate otherwise.

INVESTMENT ADVISER -- Capital Research and Management Company, the series'
investment adviser, founded in 1931, maintains research facilities in the United
States and abroad (Los Angeles, San Francisco, New York, Washington, DC, London,
Geneva, Hong Kong, Singapore and Tokyo). These facilities are staffed with
experienced investment professionals. The investment adviser is located at 333
South Hope Street, Los Angeles, CA 90071 and 135 South State College Boulevard,
Brea, CA 92821. It is a wholly owned subsidiary of The Capital Group Companies,
Inc., a holding company for several investment management subsidiaries. The
investment adviser manages equity assets for the American Funds through two
divisions. These divisions generally function separately from each other with
respect to investment research activities and they make investment decisions for
the funds on a separate basis.

POTENTIAL CONFLICTS OF INTEREST -- The investment adviser has adopted policies
and procedures that address conflicts of interest that may arise between a
portfolio counselor's management of one of more funds in the series and his or
her management of other funds and accounts. Potential areas of conflict could
involve the mix of fund assets among various American Funds, allocation of
investment opportunities and trades among funds and accounts, use of information

American Funds Target Retirement Series -- Page 21
<PAGE>

regarding the timing of fund trades, personal investing activities, portfolio
counselor compensation and voting relating to portfolio securities. The
investment adviser has adopted policies and procedures that it believes are
reasonably designed to address these conflicts. However, there is no guarantee
that such policies and procedures will be effective or that the investment
adviser will anticipate all potential conflicts of interest.

COMPENSATION OF INVESTMENT PROFESSIONALS -- As described in the prospectus,
portfolio counselors select the underlying funds and determine the asset mix for
each fund. [more to come]

PORTFOLIO COUNSELOR FUND HOLDINGS AND OTHER MANAGED ACCOUNTS -- As described
below, portfolio counselors may personally own shares of the funds. In addition,
portfolio counselors may manage portions of other mutual funds or accounts
advised by Capital Research and Management Company or its affiliates.

THE FOLLOWING TABLE REFLECTS INFORMATION AS OF DATE:

NUMBER
OF OTHER NUMBER
REGISTERED OF OTHER NUMBER
INVESTMENT POOLED OF OTHER
COMPANIES (RICS) INVESTMENT ACCOUNTS
THAT VEHICLES (PIVS) THAT
PORTFOLIO THAT PORTFOLIO
COUNSELOR PORTFOLIO COUNSELOR
DOLLAR RANGE MANAGES COUNSELOR MANAGES
OF FUND (ASSETS OF RICS MANAGES (ASSETS OF
PORTFOLIO SHARES IN BILLIONS)/2/ (ASSETS OF PIVS OTHER ACCOUNTS
COUNSELOR OWNED/1/ IN BILLIONS)/3/ IN BILLIONS)/4/
-------------------------------------------------------------------------------------
<C

--------------------------------------------------------------------------------------

1 Ownership disclosure is made using the following ranges: None; $1 - $10,000;
$10,001 - $50,000; $50,001 - $100,000; $100,001 - $500,000; $500,001 -
$1,000,000; and Over $1,000,000. The amounts listed include shares owned
through The Capital Group Companies, Inc. retirement plan and 401(k) plan.
2 Indicates fund(s) where the portfolio counselor also has significant
responsibilities for the day to day management of the fund(s). Assets noted are
the total net assets of the registered investment companies and are not
indicative of the total assets managed by the individual, which is a
substantially lower amount. No fund or account has an advisory fee that is
based on the performance of the fund or account.
3 Represents funds advised or sub-advised by Capital Research and Management
Company and sold outside the United States and/ or fixed-income assets in
institutional accounts managed by investment adviser subsidiaries of Capital
Group International, Inc., an affiliate of Capital Research and Management
Company. Assets noted are the total net assets of the funds or accounts and are
not indicative of the total assets managed by the individual, which is a
substantially lower amount. No fund or account has an advisory fee that is
based on the performance of the fund or account.
4 Reflects other professionally managed accounts held at companies affiliated
with Capital Research and Management Company. Personal brokerage accounts of
portfolio counselors and their families are not reflected.

INVESTMENT ADVISORY AND SERVICE AGREEMENT -- The Investment Advisory and Service
Agreement (the "Agreement") between the series and the investment adviser will
continue in effect until DATE, unless sooner terminated, and may be renewed from
year to year thereafter, provided that any such renewal has been specifically
approved at least annually by (a) the board of directors, or by the vote of a
majority (as defined in the 1940 Act) of the outstanding voting securities of
the series, and (b) the vote of a majority of directors who are not parties to
the

American Funds Target Retirement Series -- Page 22
<PAGE>

Agreement or interested persons (as defined in the 1940 Act) of any such party,
cast in person at a meeting called for the purpose of voting on such approval.
The Agreement provides that the investment adviser has no liability to the
series for its acts or omissions in the performance of its obligations to the
series not involving willful misconduct, bad faith, gross negligence or reckless
disregard of its obligations under the Agreement. The Agreement also provides
that either party has the right to terminate it, without penalty, upon 60 days'
written notice to the other party, and that the Agreement automatically
terminates in the event of its assignment (as defined in the 1940 Act).

In addition to providing investment advisory services, the investment adviser
furnishes the services and pays the compensation and travel expenses of persons
to perform the series' executive, administrative, clerical and bookkeeping
functions, and provides suitable office space, necessary small office equipment
and utilities, general purpose accounting forms, supplies and postage used at
the series' offices. The series will pay all expenses not assumed by the
investment adviser, including, but not limited to, custodian, stock transfer and
dividend disbursing fees and expenses; shareholder recordkeeping and
administrative expenses; costs of the designing, printing and mailing of
reports, prospectuses, proxy statements and notices to its shareholders; taxes;
expenses of the issuance and redemption of fund shares (including stock
certificates, registration and qualification fees and expenses); expenses
pursuant to the series' plans of distribution (described below); legal and
auditing expenses; compensation, fees and expenses paid to independent
directors; association dues; costs of stationery and forms prepared exclusively
for the fund; and costs of assembling and storing shareholder account data.

As described in the prospectus, the investment adviser is not currently charging
a management fee. However, the investment advisory and services agreement
authorizes the adviser to be paid a fee up to XX%. The investment adviser may
begin charging a management fee in consultation with the series' board, but no
management fee will be charged until further review. The Series' investment
adviser and board intend to review the management fee as circumstances warrant.

Since each fund pursues its investment objective by investing in other mutual
funds, you will bear your proportionate share of a fund's operating expenses and
also, indirectly, the operating expenses of the underlying funds in which the
fund invests.

The following table provides the effective annual fee rates for each of the
underlying funds.

UNDERLYING AMERICAN FUNDS ANNUAL FEE RATE
-----------------------------------------------------------------------------

AMCAP Fund X.XX%
-----------------------------------------------------------------------------
The Growth Fund of America X.XX
-----------------------------------------------------------------------------
The New Economy Fund X.XX
-----------------------------------------------------------------------------
EuroPacific Growth Fund X.XX
-----------------------------------------------------------------------------
New Perspective Fund X.XX
-----------------------------------------------------------------------------
New World Fund X.XX
-----------------------------------------------------------------------------
SMALLCAP World Fund X.XX
-----------------------------------------------------------------------------
American Mutual Fund X.XX
-----------------------------------------------------------------------------
Capital World Growth and Income Fund X.XX
-----------------------------------------------------------------------------
Fundamental Investors X.XX
-----------------------------------------------------------------------------
The Investment Company of America X.XX
-----------------------------------------------------------------------------
Washington Mutual Investors Fund X.XX
-----------------------------------------------------------------------------
Capital Income Builder X.XX
-----------------------------------------------------------------------------
The Income Fund of America X.XX
-----------------------------------------------------------------------------
American Balanced Fund X.XX
-----------------------------------------------------------------------------
American High-Income Trust X.XX
-----------------------------------------------------------------------------
The Bond Fund of America X.XX
-----------------------------------------------------------------------------
Capital World Bond Fund X.XX
-----------------------------------------------------------------------------
Intermediate Bond Fund of America X.XX
-----------------------------------------------------------------------------
Short-Term Bond Fund of America X.XX
-----------------------------------------------------------------------------
U.S. Government Securities Fund X.XX
-----------------------------------------------------------------------------

American Funds Target Retirement Series -- Page 23
<PAGE>

ADMINISTRATIVE SERVICES AGREEMENT -- The Administrative Services Agreement (the
"Administrative Agreement") between the series and the investment adviser
relating to the series' Class A and R shares will continue in effect until DATE,
unless sooner terminated, and may be renewed from year to year thereafter,
provided that any such renewal has been specifically approved at least annually
by the vote of a majority of directors who are not parties to the Administrative
Agreement or interested persons (as defined in the 1940 Act) of any such party,
cast in person at a meeting called for the purpose of voting on such approval.
The series may terminate the Administrative Agreement at any time by vote of a
majority of independent directors. The investment adviser has the right to
terminate the Administrative Agreement upon 60 days' written notice to the
series. The Administrative Agreement automatically terminates in the event of
its assignment (as defined in the 1940 Act).

Under the Administrative Agreement, the investment adviser provides certain
transfer agent and administrative services for shareholders of each fund's Class
A and all Class R shares. The investment adviser contracts with third parties,
including American Funds Service Company, the series' Transfer Agent, to provide
these services. Services include, but are not limited to, shareholder account
maintenance, transaction processing, tax information reporting and shareholder
and fund communications. In addition, the investment adviser monitors,
coordinates and oversees the activities performed by third parties providing
such services. For Class R-1 and R-2 shares, the investment adviser has agreed
to pay a portion of the fees payable under the Administrative Agreement that
would otherwise have been paid by the series.

As compensation for its services, the investment adviser receives transfer agent
fees for transfer agent services provided to each fund's Class A and R shares.
Transfer agent fees are paid monthly according to a fee schedule contained in a
Shareholder Services Agreement between the series and American Funds Service
Company. The investment adviser also receives an administrative services fee at
the annual rate of up to XX% of the average daily net assets for Class R
(excluding Class R-5 shares) for administrative services provided to these share
classes. Administrative services fees are paid monthly and accrued daily. The
investment adviser uses a portion of this fee to compensate third parties for
administrative services provided to the fund. Of the remainder, the investment
adviser does not retain more than XX% of the average daily net assets for each
applicable share class. For Class R-5 shares, the administrative services fee is
calculated at the annual rate of up to XX% of the average daily net assets. This
fee is subject to the same uses and limitations described above.

PRINCIPAL UNDERWRITER AND PLANS OF DISTRIBUTION -- American Funds Distributors,
Inc. (the "Principal Underwriter") is the principal underwriter of the series'
shares. The Principal

American Funds Target Retirement Series -- Page 24
<PAGE>

Underwriter is located at 333 South Hope Street, Los Angeles, CA 90071; 135
South State College Boulevard, Brea, CA 92821; 15370 Barranca Parkway, Irvine,
CA 92618; 3500 Wiseman Boulevard, San Antonio, TX 78251; 8332 Woodfield Crossing
Boulevard, Indianapolis, IN 46240; and 5300 Robin Hood Road, Norfolk, VA 23513.

The Principal Underwriter receives revenues from sales of the funds' shares. For
Class A shares, the Principal Underwriter receives commission revenue consisting
of that portion of the Class A sales charge remaining after the allowances by
the Principal Underwriter to investment dealers. For Class R-1, R-2, R-3 and R-4
shares, the fund pays the Principal Underwriter for advancing the immediate
service fees paid to qualified dealers and advisers who sell Class R-1, R-2, R-3
and R-4 shares.

The series has adopted plans of distribution (the "Plans") pursuant to rule
12b-1 under the 1940 Act. The Principal Underwriter receives amounts payable
pursuant to the Plans (see below). As required by rule 12b-1 and the 1940 Act,
the Plans (together with the Principal Underwriting Agreement) have been
approved by the full board of directors and separately by a majority of the
independent directors of the series who have no direct or indirect financial
interest in the operation of the Plans or the Principal Underwriting Agreement.
Potential benefits of the Plans to the series include quality shareholder
services; savings to the series in transfer agency costs; and benefits to the
investment process from growth or stability of assets. The selection and
nomination of independent directors are committed to the discretion of the
independent directors during the existence of the Plans. The Plans may not be
amended to increase materially the amount spent for distribution without
shareholder approval. Plan expenses are reviewed quarterly and the Plans must be
renewed annually by the board of directors.

Under the Plans, the series may annually expend the following amounts to finance
any activity primarily intended to result in the sale of fund shares, provided
the fund's board of directors has approved the category of expenses for which
payment is being made: (a) for Class A shares of each fund, up to .25% of the
average daily net assets attributable to Class A shares of such fund; (b) for
Class R-1 shares of each fund, up to 1.00% of the average daily net assets
attributable to Class R-1 shares of such fund; (c) for Class R-2 shares of each
fund, up to 1.00% of the average daily net assets attributable to Class R-2
shares; (d) for Class R-3 shares of each fund, up to .75% of the average daily
net assets attributable to Class R-3 shares; and (e) for Class R-4 shares of
each fund, up to .50% of the average daily net assets attributable to Class R-4
shares of such fund. The fund has not adopted a Plan for Class R-5 shares;
accordingly, no 12b-1 fees are paid from Class R-5 share assets.

For Class A shares: (a) up to .25% is reimbursed to the Principal Underwriter
for paying service-related expenses, including paying service fees to qualified
dealers, and (b) up to the amount allowable under the fund's Class A 12b-1 limit
is reimbursed to the Principal Underwriter for paying distribution-related
expenses, including for Class A shares dealer commissions and wholesaler
compensation paid on sales of shares of $1 million or more purchased without a
sales charge (including purchases by employer-sponsored defined
contribution-type retirement plans investing $1 million or more or with 100 or
more eligible employees, and retirement plans, endowments and foundations with
$50 million or more in assets -- "no load purchases"). Commissions on no load
purchases of Class A shares in excess of the Class A limitations not reimbursed
to the Principal Underwriter during the most recent fiscal quarter are
recoverable for five quarters, provided that such commissions do not exceed the
annual expense limit. After five quarters, these commissions are not
recoverable.

American Funds Target Retirement Series -- Page 25
<PAGE>

For Class R-1 shares: (a) up to 0.25% is paid to the Principal Underwriter for
paying service-related expenses, including paying service fees to qualified
dealers, and (b) up to 0.50% is paid to the Principal Underwriter for
distribution-related expenses, including commissions paid to qualified dealers.

For Class R-2 shares: currently (a) up to 0.25% is paid to the Principal
Underwriter for paying service-related expenses, including paying service fees
to qualified dealers, and (b) up to 0.50% is paid to the Principal Underwriter
for paying distribution-related expenses, including commissions paid to
qualified dealers.

For Class R-3 shares: currently (a) up to 0.25% is paid to the Principal
Underwriter for paying service-related expenses, including paying service fees
to qualified dealers, and (b) up to 0.25% is paid to the Principal Underwriter
for paying distribution-related expenses, including commissions paid to
qualified dealers.

For Class R-4 shares: currently up to 0.25% is paid to the Principal Underwriter
for paying service-related expenses, including paying service fees to qualified
dealers or advisers.

OTHER COMPENSATION TO DEALERS -- As of January 2006, the top dealers (or their
affiliates) that American Funds Distributors anticipates will receive additional
compensation (as described in the prospectus) include:

A. G. Edwards & Sons, Inc.
AIG Advisors Group:
Advantage Capital
AIG Financial Advisors
FSC
Royal Alliance
American General Securities Inc.
Ameritas Investment Corp.
AXA Advisors, LLC
Cadaret, Grant & Co., Inc.
Cambridge Investment Research, Inc.
Capital Analysts, Inc.
Commonwealth Financial Network
Cuna Brokerage Services, Inc.
Deutsche Bank Securities Inc.
Edward Jones
Ferris, Baker Watts, Inc.
Genworth Financial Securities Corp.
Hefren-Tillotson, Inc.
Hornor, Townsend & Kent, Inc.
ING Advisors Network Inc.:
Bancnorth Investment Group
Financial Network
ING Financial Advisors
ING Financial Partners
Multi - Financial
Primevest
InterSecurities, Inc./Transamerica Financial Advisors, Inc.

American Funds Target Retirement Series -- Page 26
<PAGE>

Investacorp, Inc.
Janney Montgomery Scott LLC
Jefferson Pilot Securities Corporation
JJB Hilliard, WL Lyons, Inc./PNC Bank
Legg Mason Wood Walker, Inc.
Lincoln Financial Advisors Corporation
McDonald Investments Inc./Society National Bank
Merrill Lynch, Pierce, Fenner & Smith Inc.
Metlife Enterprises
MML Investors Services, Inc.
Morgan Keegan & Company, Inc.
Morgan Stanley DW
NatCity Investment, Inc.
National Planning Holdings Inc.:
Invest
Investment Centers of America
National Planning Corp
SII Investments
NFP Securities, Inc.
Northwestern Mutual Investment Services, LLC.
Pacific Select Group, LLC:
Associated Securities
Contemporary Financial
Mutual Service Corporation
United Planners
Waterstone
Park Avenue Securities LLC
Piper Jaffray & Co.
Princor Financial Services
ProEquities, Inc.
Raymond James Financial Services/Raymond James & Associates
RBC Dain Rauscher Inc.
Robert W. Baird & Co. Inc.
Securian Financial Services/C.R.I. Securities Inc.
Securities Service Network Inc.
Signator Investors, Inc.
Smith Barney
Stifel, Nicolaus & Company, Inc.
The O.N. Equity Sales Company
UBS Financial Services Inc.
US Bancorp Investments, Inc.
Wachovia Securities

EXECUTION OF PORTFOLIO TRANSACTIONS

The series does not incur any brokerage commissions for purchasing shares in the
underlying funds. However, the series may incur brokerage commissions and/or
investment dealer concessions when purchasing short-term debt securities for the
funds. Portfolio transactions for the Series may be executed as part of
concurrent authorizations to purchase or sell the same security for other funds
served by the investment adviser, or for trusts or other accounts served

American Funds Target Retirement Series -- Page 27
<PAGE>

by affiliated companies of the investment adviser. When such concurrent
authorizations occur, the objective is to allocate the executions in an
equitable manner.

The series is required to disclose information regarding investments in the
securities of its "regular" broker-dealers (or parent companies of its regular
broker-dealers) that derive more than 15% of their revenue from broker-dealer,
underwriter or investment adviser activities. A regular broker-dealer is (a) one
of the 10 broker-dealers that received from the series the largest amount of
brokerage commissions by participating, directly or indirectly, in the series'
portfolio transactions during the series' most recent fiscal year; (b) one of
the 10 broker-dealers that engaged as principal in the largest dollar amount of
portfolio transactions of the Series during the series' most recent fiscal year;
or (c) one of the 10 broker-dealers that sold the largest amount of securities
of the series during the series' most recent fiscal year.

DISCLOSURE OF PORTFOLIO HOLDINGS

The series' investment adviser, on behalf of the funds, has adopted policies and
procedures with respect to the disclosure of information about the funds'
portfolio securities. These policies and procedures have been reviewed by the
series' board of directors and compliance will be periodically assessed by the
board in connection with reporting from the series' Chief Compliance Officer.
These policies and procedures are similar to those adopted by the underlying
funds.

Under these policies and procedures, each fund's complete list of portfolio
holdings available for public disclosure, dated as of the end of each calendar
quarter, is permitted to be posted on the American Funds Retirement website no
earlier than the tenth day after such calendar quarter. In practice, the public
portfolio typically is posted on the website approximately 45 days after the end
of the calendar quarter. Such portfolio holdings information may then be
disclosed to any person pursuant to an ongoing arrangement to disclose portfolio
holdings information to such person no earlier than one day after the day on
which the information is posted on the American Funds website. The fund's
custodian, outside counsel and auditor, each of which require portfolio holdings
information for legitimate business and fund oversight purposes, may receive the
information earlier. Information regarding the portfolio holdings of the
underlying funds will be available on the American Funds website.

Affiliated persons of the series as described above who receive portfolio
holdings information are subject to restrictions and limitations on the use and
handling of such information pursuant to applicable codes of ethics, including
requirements to maintain the confidentiality of such information, preclear
securities trades and report securities transactions activity, as applicable.
Third party service providers of the series receiving such information are
subject to confidentiality obligations. When portfolio holdings information is
disclosed other than through the American Funds website and/or the American
Funds Retirement website to persons not affiliated with the series (which, as
described above, would typically occur no earlier than one day after the day on
which the information is posted on the American Funds website and/or the
American Funds Retirement website), such persons may be bound by agreements
(including confidentiality agreements) that restrict and limit their use of the
information to legitimate business uses only. Neither the series nor its
investment adviser or any affiliate thereof receives compensation or other
consideration in connection with the disclosure of information about portfolio
securities.

Subject to board policies, the authority to disclose a fund's portfolio
holdings, and to establish policies with respect to such disclosure, resides
with the appropriate investment-related

American Funds Target Retirement Series -- Page 28
<PAGE>

committees of the series' investment adviser. In exercising their authority, the
committees determine whether disclosure of information about the funds'
portfolio securities is appropriate and in the best interest of series
shareholders. The investment adviser has implemented policies and procedures to
address conflicts of interest that may arise from the disclosure of fund
holdings. For example, the investment adviser's code of ethics specifically
requires, among other things, the safeguarding of information about fund
holdings and contains prohibitions designed to prevent the personal use of
confidential, proprietary investment information in a way that would conflict
with fund transactions. In addition, the investment adviser believes that its
current policy of not selling portfolio holdings information and not disclosing
such information to unaffiliated third parties until such holdings have been
made public on the American Funds website and/or the American Funds Retirement
website (other than to certain series service providers for legitimate business
and series oversight purposes) helps reduce potential conflicts of interest
between series shareholders and the investment adviser and its affiliates.

PRICE OF SHARES

Shares are purchased at the offering price or sold at the net asset value price
next determined after the purchase or sell order is received and accepted by the
series or the Transfer Agent; the offering or net asset value price is effective
for orders received prior to the time of determination of the net asset value
and, in the case of orders placed with dealers or their authorized designees,
accepted by the Principal Underwriter, the Transfer Agent, a dealer or any of
their designees. In the case of orders sent directly to the fund or the Transfer
Agent, an investment dealer should be indicated. The dealer is responsible for
promptly transmitting purchase and sell orders to the Principal Underwriter.

Orders received by the investment dealer or authorized designee, the Transfer
Agent or the series after the time of the determination of the net asset value
will be entered at the next calculated offering price. Note that investment
dealers or other intermediaries may have their own rules about share
transactions and may have earlier cut-off times than those of the fund. For more
information about how to purchase through your intermediary, contact your
intermediary directly.

Prices that appear in the newspaper do not always indicate prices at which you
will be purchasing and redeeming shares of each fund, since such prices
generally reflect the previous day's closing price, while purchases and
redemptions are made at the next calculated price. The price you pay for shares,
the offering price, is based on the net asset value per share, which is
calculated once daily as of approximately 4:00 p.m. New York time, which is the
normal close of trading on the New York Stock Exchange, each day the Exchange is
open. If, for example, the Exchange closes at 1:00 p.m., each fund's share price
would still be determined as of 4:00 p.m. New York time. The New York Stock
Exchange is currently closed on weekends and on the following holidays: New
Year's Day; Martin Luther King, Jr. Day; Presidents' Day; Good Friday; Memorial
Day; Independence Day; Labor Day; Thanksgiving; and Christmas Day. Each share
class of the fund has a separately calculated net asset value (and share price).

As noted in the prospectus, the principal assets of the funds consist of
investments in the underlying funds. All portfolio securities of the funds are
valued, and the net asset values per share for each share class are determined,
as indicated below. The funds follows standard industry practice by typically
reflecting changes in its holdings of portfolio securities on the first business
day following a portfolio trade:

American Funds Target Retirement Series -- Page 29
<PAGE>

1. Underlying funds are priced based on the net asset value of each fund,
calculated as of approximately 4:00 p.m. New York time each day the New York
Stock Exchange is open. Equity securities, including depositary receipts, are
valued at the official closing price of, or the last reported sale price on, the
exchange or market on which such securities are traded, as of the close of
business on the day the securities are being valued or, lacking any sales, at
the last available bid price. Prices for each security are taken from the
principal exchange or market in which the security trades. Fixed-income
securities are valued at prices obtained from an independent pricing service,
when such prices are available; however, in circumstances where the investment
adviser deems it appropriate to do so, such securities will be valued at the
mean quoted bid and asked prices (or bid prices, if asked prices are not
available) or at prices for securities of comparable maturity, quality and type.
The pricing services base bond prices on, among other things, an evaluation of
the yield curve as of approximately 3:00 p.m. New York time. The fund's
investment adviser performs certain checks on these prices prior to calculation
of the underlying fund's net asset value.

Securities with both fixed-income and equity characteristics (e.g., convertible
bonds, preferred stocks, units comprised of more than one type of security,
etc.), or equity securities traded principally among fixed-income dealers, are
valued in the manner described above for either equity or fixed-income
securities, depending on which method is deemed most appropriate by the
investment adviser.

Securities with original maturities of one year or less having 60 days or less
to maturity are amortized to maturity based on their cost if acquired within 60
days of maturity, or if already held on the 60th day, based on the value
determined on the 61st day. Forward currency contracts are valued at the mean of
representative quoted bid and asked prices.

Assets or liabilities initially expressed in terms of non-U.S. currencies are
translated prior to the next determination of the net asset value of the fund's
shares into U.S. dollars at the prevailing market rates.

Securities and assets for which market quotations are not readily available or
are considered unreliable are valued at fair value as determined in good faith
under policies approved by the underlying fund's board. Subject to board
oversight, the fund's board has delegated the obligation to make fair valuation
determinations to a valuation committee established by the fund's investment
adviser. The board receives regular reports describing fair-valued securities
and the valuation methods used.

The valuation committee has adopted guidelines and procedures (consistent with
SEC rules and guidance) to ensure that certain basic principles and factors are
considered when making all fair value determinations. As a general principle,
securities lacking readily available market quotations, or that have quotations
that are considered unreliable by the investment adviser, are valued in good
faith by the valuation committee based upon what the fund might reasonably
expect to receive upon their current sale. The valuation committee considers all
indications of value available to it in determining the fair value to be
assigned to a particular security, including, without limitation, the type and
cost of the security, contractual or legal restrictions on resale of the
security, relevant financial or business developments of the issuer, actively
traded similar or related securities, conversion or exchange rights on the
security, related corporate actions, significant events occurring after the
close of trading in the security and changes in overall market conditions. The
valuation committee employs additional fair value procedures to address issues
related to investing substantial portions of applicable fund portfolios outside
the United

American Funds Target Retirement Series -- Page 30
<PAGE>

States. Securities owned by these funds trade in markets that open and close at
different times, reflecting time zone differences. If significant events occur
after the close of a market (and before these fund's net asset values are next
determined) which affect the value of portfolio securities, appropriate
adjustments from closing market prices may be made to reflect these events.
Events of this type could include, for example, earthquakes and other natural
disasters or significant price changes in other markets (e.g., U.S. stock
markets). The series follows standard industry practice by typically reflecting
changes in its holdings of portfolio securities on the first business day
following a portfolio trade.

2. Each class of shares represents interests in the same portfolio of
investments and is identical in all respects to each other class, except for
differences relating to distribution, service and other charges and expenses,
certain voting rights, differences relating to eligible investors, the
designation of each class of shares, conversion features and exchange
privileges. Expenses attributable to the fund, but not to a particular class of
shares, are borne by each class pro rata based on relative aggregate net assets
of the classes. Expenses directly attributable to a class of shares are borne by
that class of shares. Liabilities, including accruals of taxes and other expense
items attributable to particular share classes, are deducted from total assets
attributable to such share classes.

3. Net assets so obtained for each share class are then divided by the total
number of shares outstanding of that share class, and the result, rounded to the
nearer cent, is the net asset value per share for that share class.

TAXES AND DISTRIBUTIONS

FUND TAXATION -- Each fund has elected to be treated as a regulated investment
company under Subchapter M of the Internal Revenue Code (the "Code"). A
regulated investment company qualifying under Subchapter M of the Code is
required to distribute to its shareholders at least 90% of its investment
company taxable income (including the excess of net short-term capital gain over
net long-term capital losses) and generally is not subject to federal income tax
to the extent that it distributes annually 100% of its investment company
taxable income and net realized capital gains in the manner required under the
Code. Each fund intends to distribute annually all of its investment company
taxable income and net realized capital gains and therefore does not expect to
pay federal income tax, although in certain circumstances, a fund may determine
that it is in the interest of shareholders to distribute less than that amount.

To be treated as a regulated investment company under Subchapter M of the Code,
each fund must also (a) derive at least 90% of its gross income from dividends,
interest, payments with respect to securities loans, net income from certain
publicly traded partnerships and gains from the sale or other disposition of
securities or foreign currencies, or other income (including, but not limited
to, gains from options, futures or forward contracts) derived with respect to
the business of investing in such securities or currencies, and (b) diversify
its holdings so that, at the end of each fiscal quarter, (i) at least 50% of the
market value of the fund's assets is represented by cash, U.S. government
securities and securities of other regulated investment companies, and other
securities (for purposes of this calculation, generally limited in respect of
any one issuer, to an amount not greater than 5% of the market value of the
fund's assets and 10% of the outstanding voting securities of such issuer) and
(ii) not more than 25% of the value of its assets is invested in the securities
of (other than U.S. government securities or the securities of other regulated
investment companies) any one issuer; two or more issuers which the fund
controls and which

American Funds Target Retirement Series -- Page 31
<PAGE>

are determined to be engaged in the same or similar trades or businesses; or the
securities of certain publicly traded partnerships.

Under the Code, a nondeductible excise tax of 4% is imposed on the excess of a
regulated investment company's "required distribution" for the calendar year
ending within the regulated investment company's taxable year over the
"distributed amount" for such calendar year. The term "required distribution"
means the sum of (a) 98% of ordinary income (generally net investment income)
for the calendar year, (b) 98% of capital gain (both long-term and short-term)
for the one-year period ending on October 31 (as though the one-year period
ending on October 31 were the regulated investment company's taxable year) and
(c) the sum of any untaxed, undistributed net investment income and net capital
gains of the regulated investment company for prior periods. The term
"distributed amount" generally means the sum of (a) amounts actually distributed
by each fund from its current year's ordinary income and capital gain net income
and (b) any amount on which the fund pays income tax during the periods
described above. Although each fund intends to distribute its net investment
income and net capital gains so as to avoid excise tax liability, the fund may
determine that it is in the interest of shareholders to distribute a lesser
amount.

The following information may not apply to you if you hold fund shares in a
tax-deferred account, such as a retirement plan. Please see your tax adviser
for more information.

DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS -- Dividends and capital gain
distributions on fund shares generally will be reinvested in shares of the fund
of the same class.

Distributions of investment company taxable income and net realized capital
gains to shareholders will be taxable whether received in shares or in cash,
unless such shareholders are exempt from taxation. Shareholders electing to
receive distributions in the form of additional shares will have a cost basis
for federal income tax purposes in each share so received equal to the net asset
value of that share on the reinvestment date. Dividends and capital gain
distributions by each fund to a tax-deferred retirement plan account are not
taxable currently.

DIVIDENDS -- Each fund intends to follow the practice of distributing
substantially all of its investment company taxable income. Investment
company taxable income generally includes dividends, interest, net
short-term capital gains in excess of net long-term capital losses, and
certain foreign currency gains, if any, less expenses and certain foreign
currency losses. To the extent each fund invests in stock of domestic and
certain foreign corporations and meets the applicable holding period
requirement, it may receive "qualified dividends". Each fund will designate
the amount of "qualified dividends" to its shareholders in a notice sent
within 60 days of the close of its fiscal year and will report "qualified
dividends" to shareholders on Form 1099-DIV.

Dividends from domestic corporations are expected to comprise some portion
of the fund's gross income. To the extent that such dividends constitute
any of the fund's gross income, a portion of the income distributions of
the fund may be eligible for the deduction for dividends received by
corporations. Corporate shareholders will be informed of the portion of
dividends that so qualifies. The dividends-received deduction is reduced to
the extent that either the fund shares, or the underlying shares of stock
held by the fund, with respect to which dividends are received, are treated
as debt-financed under federal income tax law, and is eliminated if the
shares are deemed to have been held by the

American Funds Target Retirement Series -- Page 32
<PAGE>

shareholder or the fund, as the case may be, for less than 46 days during
the 90-day period beginning on the date that is 45 days before the date on
which the shares become ex-dividend. Capital gain distributions are not
eligible for the dividends-received deduction.

A portion of the difference between the issue price of zero coupon
securities and their face value (original issue discount) is considered to
be income to a fund or underlying fund each year, even though the funds
will not receive cash interest payments from these securities. This
original issue discount (imputed income) will comprise a part of the
investment company taxable income of the fund or underlying fund that
must be distributed to shareholders in order to maintain the qualification
of the fund as a regulated investment company and to avoid federal income
taxation at the level of the fund or underlying fund.

The price of a bond purchased after its original issuance may reflect
market discount which, depending on the particular circumstances, may
affect the tax character and amount of income required to be recognized by
a fund or underlying fund holding the bond. In determining whether a bond
is purchased with market discount, certain de minimis rules apply.

CAPITAL GAIN DISTRIBUTIONS -- The funds also intend to follow the practice
of distributing the entire excess of net realized long-term capital gains
over net realized short-term capital losses. Net capital gains for a fiscal
year are computed by taking into account any capital loss carry forward of
the funds.

If any net long-term capital gains in excess of net short-term capital
losses are retained by each fund for reinvestment, requiring federal income
taxes to be paid thereon by the fund, the fund intends to elect to treat
such capital gains as having been distributed to shareholders.

Shareholders should consult their tax advisers about the application of federal,
state and local tax law in light of their particular situation.

American Funds Target Retirement Series -- Page 33
<PAGE>

PURCHASES BY EMPLOYER-SPONSORED RETIREMENT PLANS

As noted in the prospectus, participants in an eligible retirement plan should
contact their plans' administrator or recordkeeper for information regarding
purchases, sales and exchanges.

PURCHASE AND EXCHANGE OF SHARES

PURCHASES BY INDIVIDUAL-TYPE RETIREMENT ACCOUNTS -- As described in the
prospectus, you may generally open an account and purchase fund shares by
contacting a financial adviser or investment dealer authorized to sell the
fund's shares. You may make investments by any of the following means:

CONTACTING YOUR FINANCIAL ADVISER -- Deliver or mail a check to your
financial adviser.

BY MAIL -- for initial investments, you may mail a check, made payable to
the fund, directly to the address indicated on the account application.
Please indicate an investment dealer on the account application. You may
make additional investments by filling out the "Account Additions" form at
the bottom of a recent account statement and mailing the form, along with a
check made payable to the fund, using the envelope provided with your
account statement.

The amount of time it takes for us to receive regular U.S. postal mail may
vary and there is no assurance that we will receive such mail on the day
you expect. Mailing addresses for regular U.S. postal mail can be found in
the prospectus. To send investments or correspondence to us via overnight
mail or courier service, use any of the following addresses:

American Funds
8332 Woodfield Crossing Blvd.
Indianapolis, IN 46240-2482

American Funds
3500 Wiseman Blvd.
San Antonio, TX 78251-4321

American Funds
5300 Robin Hood Rd.
Norfolk, VA 23513-2407

BY TELEPHONE -- using the American FundsLine. Please see the "Shareholder
account services and privileges" section of this document for more
information regarding this service.

BY INTERNET -- using americanfunds.com. Please see the "Shareholder account
services and privileges" section of this document for more information
regarding this service.

BY WIRE -- If you are making a wire transfer, instruct your bank to wire
funds to:

Wells Fargo Bank
ABA Routing No. 121000248
Account No. 4600-076178

American Funds Target Retirement Series -- Page 34
<PAGE>

Your bank should include the following information when wiring funds:

For credit to the account of:
American Funds Service Company
(fund's name)

For further credit to:
(shareholder's fund account number)
(shareholder's name)

You may contact American Funds Service Company at 800/421-0180 if you have
questions about making wire transfers.

The Principal Underwriter will not knowingly sell shares of the fund directly or
indirectly to any person or entity, where, after the sale, such person or entity
would own beneficially directly or indirectly more than XX% of the outstanding
shares of the fund without the consent of a majority of the fund's board.

PURCHASE MINIMUMS AND MAXIMUMS FOR INDIVIDUAL-TYPE RETIREMENT ACCOUNTS -- All
investments are subject to the purchase minimums and maximums described in the
prospectus. As noted in the prospectus, purchase minimums may be waived or
reduced in certain cases.

In the case of American Funds non-tax-exempt funds, the initial purchase minimum
of $25 may be waived for the following account types:

. Payroll deduction retirement plan accounts (such as, but not limited
to, 403(b), 401(k), SIMPLE IRA, SARSEP and deferred compensation plan
accounts).

The following account types may be established without meeting the initial
purchase minimum:

. Retirement accounts that are funded with employer contributions; and

. Accounts that are funded with monies set by court decree.

The following account types may be established without meeting the initial
purchase minimum, but shareholders wishing to invest in two or more funds must
meet the normal initial purchase minimum of each fund:

. Accounts that are funded with (a) transfers of assets, (b) rollovers
from retirement plans or (c) required minimum distribution automatic
exchanges.

Certain accounts held on the series' books, known as omnibus accounts, contain
multiple underlying accounts that are invested in shares of the series. These
underlying accounts are maintained by entities such as financial intermediaries
and are subject to the applicable initial purchase minimums as described in the
prospectus and statement of additional information. However, in the case where
the entity maintaining these accounts aggregates the accounts' purchase orders
for fund shares, such accounts are not required to meet the minimum amount for
subsequent purchases.

American Funds Target Retirement Series -- Page 35
<PAGE>

EXCHANGES -- Shares of the series generally may be exchanged into shares of the
same class of other funds in the American Funds. Exchange purchases are subject
to the minimum investment requirements of the fund purchased and no sales charge
generally applies. However, exchanges of Class A shares from the money market
funds purchased without a sales charge generally will be subject to the
appropriate sales charge, unless the money market fund shares were acquired by
an exchange from a fund having a sales charge.

Shares may be exchanged into other American Funds by contacting your plan
administrator or recordkeeper. Shares held in corporate-type retirement plans
for which Capital Bank and Trust Company serves as trustee may not be exchanged
by telephone, internet, fax or telegraph. Exchange redemptions and purchases are
processed simultaneously at the share prices next determined after the exchange
order is received.

FREQUENT TRADING OF FUND SHARES -- As noted in the prospectus, certain
redemptions may trigger a purchase block lasting 30 calendar days under the
series' "purchase blocking policy." Under this policy, systematic redemptions
will not trigger a purchase block and systematic purchases will not be
prevented. For purposes of this policy, systematic redemptions include, for
example, regular periodic automatic redemptions and statement of intention
escrow share redemptions. Systematic purchases include, for example, regular
periodic automatic purchases and automatic reinvestments of dividends and
capital gain distributions.

OTHER POTENTIALLY ABUSIVE ACTIVITY -- In addition to implementing purchase
blocks, American Funds Service Company will monitor for other types of activity
that could potentially be harmful to the American Funds - for example,
short-term trading activity in multiple funds. When identified, American Funds
Service Company will request that the shareholder discontinue the activity. If
the activity continues, American Funds Service Company will freeze the
shareholder account to prevent all activity other than redemptions of fund
shares.

SALES CHARGES

CLASS A PURCHASES

PURCHASES BY CERTAIN 403(B) PLANS

Individual 403(b) plans may be treated similarly to employer-sponsored
plans for Class A sales charge purposes (i.e., individual participant
accounts are eligible to be aggregated together) if: (a) the American Funds
are principal investment options; (b) the employer facilitates the
enrollment process by, for example, allowing for onsite group enrollment
meetings held during working hours; and (c) there is only one dealer firm
assigned to the plans.

OTHER PURCHASES

Pursuant to a determination of eligibility by a vice president or more
senior officer of the Capital Research and Management Company Fund
Administration Unit, or by his or her designee, Class A shares of the
American Funds stock, stock/bond and bond funds may be sold at net asset
value to:

American Funds Target Retirement Series -- Page 36
<PAGE>

(1) current or retired directors, trustees, officers and advisory board
members of, and certain lawyers who provide services to, the funds
managed by Capital Research and Management Company, current or retired
employees of Washington Management Corporation, current or retired
employees and partners of The Capital Group Companies, Inc. and its
affiliated companies, certain family members and employees of the
above persons, and trusts or plans primarily for such persons;

(2) currently registered representatives and assistants directly employed
by such representatives, retired registered representatives with
respect to accounts established while active, or full-time employees
(collectively, "Eligible Persons") (and their (a) spouses or
equivalents if recognized under local law, (b) parents and children,
including parents and children in step and adoptive relationships,
sons-in-law and daughters-in-law, and (c) parents-in-law, if the
Eligible Persons or the spouses, children or parents of the Eligible
Persons are listed in the account registration with the
parents-in-law) of dealers who have sales agreements with the
Principal Underwriter (or who clear transactions through such
dealers), plans for the dealers, and plans that include as
participants only the Eligible Persons, their spouses, parents and/or
children;

(3) currently registered investment advisers ("RIAs") and assistants
directly employed by such RIAs, retired RIAs with respect to accounts
established while active, or full-time employees (collectively,
"Eligible Persons") (and their (a) spouses or equivalents if
recognized under local law, (b) parents and children, including
parents and children in step and adoptive relationships, sons-in-law
and daughters-in-law and (c) parents-in-law, if the Eligible Persons
or the spouses, children or parents of the Eligible Persons are listed
in the account registration with the parents-in-law) of RIA firms that
are authorized to sell shares of the funds, plans for the RIA firms,
and plans that include as participants only the Eligible Persons,
their spouses, parents and/or children;

(4) companies exchanging securities with the fund through a merger,
acquisition or exchange offer;

(5) insurance company separate accounts;

(6) accounts managed by subsidiaries of The Capital Group Companies, Inc.;

(7) The Capital Group Companies, Inc., its affiliated companies and
Washington Management Corporation;

(8) an individual or entity with a substantial business relationship with
The Capital Group Companies, Inc. or its affiliates, or an individual
or entity related or relating to such individual or entity;

(9) wholesalers and full-time employees directly supporting wholesalers
involved in the distribution of insurance company separate accounts
whose underlying investments are managed by any affiliate of The
Capital Group Companies, Inc.; and

(10) full-time employees of banks that have sales agreements with the
Principal Underwriter, who are solely dedicated to directly supporting
the sale of mutual funds.

American Funds Target Retirement Series -- Page 37
<PAGE>

Shares are offered at net asset value to these persons and organizations
due to anticipated economies in sales effort and expense. Once an account
is established under this net asset value privilege, additional investments
can be made at net asset value for the life of the account.

DEALER COMMISSIONS AND COMPENSATION -- Commissions (up to 1.00%) are paid to
dealers who initiate and are responsible for certain Class A share purchases not
subject to sales charges. Purchases by employer-sponsored defined
contribution-type retirement plans investing $1 million or more or with 100 or
more eligible employees, and purchases made at net asset value by certain
retirement plans with assets of $50 million or more. Commissions on such
investments (other than IRA rollover assets that roll over at no sales charge
under the fund's IRA rollover policy as described in the prospectus) are paid to
dealers at the following rates: 1.00% on amounts to $4 million, 0.50% on amounts
over $4 million to $10 million and 0.25% on amounts over $10 million.
Commissions are based on cumulative investments and are not annually reset.

A dealer concession of up to 1% may be paid by the series under its Class A plan
of distribution to reimburse the Principal Underwriter in connection with dealer
and wholesaler compensation paid by it with respect to investments made with no
initial sales charge.

SALES CHARGE REDUCTIONS AND WAIVERS

REDUCING YOUR CLASS A SALES CHARGE -- As described in the prospectus, there are
various ways to reduce your sales charge when purchasing Class A shares.
Additional information about Class A sales charge reductions is provided below.

STATEMENT OF INTENTION -- By establishing a statement of intention (the
"Statement"), you enter into a nonbinding commitment to purchase shares of
American Funds non-money market funds over a 13-month period and receive
the same sales charge (expressed as a percentage of your purchases) as if
all shares had been purchased at once.

The market value of your existing holdings eligible to be aggregated (see
below) as of the day immediately before the start of the Statement period
may be credited toward satisfying the Statement.

The Statement may be revised upward at any time during the Statement
period, and such a revision will be treated as a new Statement, except that
the Statement period during which the purchases must be made will remain
unchanged. Purchases made from the date of revision will receive the
reduced sales charge, if any, resulting from the revised Statement.

The Statement will be considered completed if the shareholder dies within
the 13-month Statement period. Commissions to dealers will not be adjusted
or paid on the difference between the Statement amount and the amount
actually invested before the shareholder's death.

When a shareholder elects to use a Statement, shares equal to 5% of the
dollar amount specified in the Statement may be held in escrow in the
shareholder's account out of the initial purchase (or subsequent purchases,
if necessary) by the Transfer Agent. All dividends and any capital gain
distributions on shares held in escrow will be credited to the
shareholder's account in shares (or paid in cash, if requested). If the
intended investment

American Funds Target Retirement Series -- Page 38
<PAGE>

is not completed within the specified Statement period, the purchaser may
be required to remit to the Principal Underwriter the difference between
the sales charge actually paid and the sales charge which would have been
paid if the total of such purchases had been made at a single time. Any
dealers assigned to the shareholder's account at the time a purchase was
made during the Statement period will receive a corresponding commission
adjustment if appropriate. If the difference is not paid by the close of
the Statement period, the appropriate number of shares held in escrow will
be redeemed to pay such difference. If the proceeds from this redemption
are inadequate, the purchaser may be liable to the Principal Underwriter
for the balance still outstanding.

Certain payroll deduction retirement plans purchasing Class A shares under
a Statement on or before November 12, 2006, may continue to purchase Class
A shares at the sales charge determined by that particular Statement until
the plans' values reach the amounts specified in their Statements. Upon
reaching such amounts, the Statements for these plans will be deemed
completed and will terminate at that time. After such termination, these
plans are eligible for additional sales charge reductions by meeting the
criteria under the fund's rights of accumulation policy.

Shareholders purchasing shares at a reduced sales charge under a Statement
indicate their acceptance of these terms and those in the prospectus with
their first purchase.

AGGREGATION -- Qualifying investments for aggregation include those made by
you and your "immediate family" as defined in the prospectus, if all
parties are purchasing shares for their own accounts and/or:

. individual-type employee benefit plans, such as an IRA, individual
403(b) plan (see exception in "Purchases by certain 403(b) plans"
under "Sales charges") or single-participant Keogh-type plan;

. business accounts solely controlled by you or your immediate family
(for example, you own the entire business);

. trust accounts established by you or your immediate family (for trusts
with only one primary beneficiary, upon the trustor's death the trust
account may be aggregated with such beneficiary's own accounts; for
trusts with multiple primary beneficiaries, upon the trustor's death
the trustees of the trust may instruct American Funds Service Company
to establish separate trust accounts for each primary beneficiary;
each primary beneficiary's separate trust account may then be
aggregated with such beneficiary's own accounts);

. endowments or foundations established and controlled by you or your
immediate family; or

. 529 accounts, which will be aggregated at the account owner level
(Class 529-E accounts may only be aggregated with an eligible employer
plan).

Individual purchases by a trustee(s) or other fiduciary(ies) may also be
aggregated if the investments are:

. for a single trust estate or fiduciary account, including employee
benefit plans other than the individual-type employee benefit plans
described above;

American Funds Target Retirement Series -- Page 39
<PAGE>

. made for two or more employee benefit plans of a single employer or of
affiliated employers as defined in the 1940 Act, excluding the
individual-type employee benefit plans described above;

. for a diversified common trust fund or other diversified pooled
account not specifically formed for the purpose of accumulating fund
shares;

. for nonprofit, charitable or educational organizations, or any
endowments or foundations established and controlled by such
organizations, or any employer-sponsored retirement plans established
for the benefit of the employees of such organizations, their
endowments, or their foundations; or

. for individually established participant accounts of a 403(b) plan
that is treated similarly to an employer-sponsored plan for sales
charge purposes (see "Purchases by certain 403(b) plans" under "Sales
charges" above), or made for two or more such 403(b) plans that are
treated similarly to employer-sponsored plans for sales charge
purposes, in each case of a single employer or affiliated employers as
defined in the 1940 Act.

Purchases made for nominee or street name accounts (securities held in the
name of an investment dealer or another nominee such as a bank trust
department instead of the customer) may not be aggregated with those made
for other accounts and may not be aggregated with other nominee or street
name accounts unless otherwise qualified as described above.

CONCURRENT PURCHASES -- As described in the prospectus, you may reduce your
Class A sales charge by combining purchases of all classes of shares in the
American Funds, as well as individual holdings in Endowments, (American
Legacy variable annuity contracts and variable life insurance policies).
Shares of money market funds purchased through an exchange, reinvestment or
cross-reinvestment from a fund having a sales charge also qualify. However,
direct purchases of American Funds money market funds are excluded.

RIGHTS OF ACCUMULATION -- Subject to the limitations described in the
aggregation policy, you may take into account your accumulated holdings in
all share classes of the American Funds, as well as your holdings in
Endowments, to determine your sales charge on investments in accounts
eligible to be aggregated. Subject to your investment dealer's or
recordkeeper's capabilities, your accumulated holdings will be calculated
as the higher of (a) the current value of your existing holdings (the
"market value") or (b) the amount you invested (including reinvested
dividends and capital gains, but excluding capital appreciation) less any
withdrawals (the "cost value"). Depending on the entity on whose books your
account is held, the value of your holdings in that account may not be
eligible for calculation at cost value. For example, accounts held in
nominee or street name are not eligible for calculation at cost value and
instead will be calculated at market value for purposes of rights of
accumulation.

The value of all of your holdings in accounts established in calendar year
2005 or earlier will be assigned an initial cost value equal to the market
value of those holdings as of the last business day of 2005. Thereafter,
the cost value of such accounts will increase or decrease according to
actual investments or withdrawals. You must contact your financial adviser
or American Funds Service Company if you have additional information that
is relevant to the calculation of the value of your holdings.

American Funds Target Retirement Series -- Page 40
<PAGE>

An employer-sponsored retirement plan may also take into account the market
value of its investments in American Legacy Retirement Investment Plans.
Direct purchases of American Funds money market funds are excluded.

CDSC WAIVERS FOR CLASS A SHARES -- As noted in the prospectus, a contingent
deferred sales charge ("CDSC") may be waived for redemptions due to death or
postpurchase disability of a shareholder (this generally excludes accounts
registered in the names of trusts and other entities).

In addition, a CDSC may be waived for the following types of transactions, if
together they do not exceed 12% of the value of an "account" (defined below)
annually (the "12% limit"):

. Required minimum distributions taken from retirement accounts upon the
shareholder's attainment of age 70-1/2 (required minimum distributions
that continue to be taken by the beneficiary(ies) after the account
owner is deceased also qualify for a waiver).

. Redemptions through a systematic withdrawal plan (SWP) (see "Automatic
withdrawals" under "Shareholder account services and privileges"
below). For each SWP payment, assets that are not subject to a CDSC,
such as appreciation on shares and shares acquired through
reinvestment of dividends and/or capital gain distributions, will be
redeemed first and will count toward the 12% limit. If there is an
insufficient amount of assets not subject to a CDSC to cover a
particular SWP payment, shares subject to the lowest CDSC will be
redeemed next until the 12% limit is reached. Any dividends and/or
capital gain distributions taken in cash by a shareholder who receives
payments through a SWP will also count toward the 12% limit. In the
case of a SWP, the 12% limit is calculated at the time a systematic
redemption is first made, and is recalculated at the time each
additional systematic redemption is made. Shareholders who establish a
SWP should be aware that the amount of a payment not subject to a CDSC
may vary over time depending on fluctuations in the value of their
accounts. This privilege may be revised or terminated at any time.

For purposes of this paragraph, "account" means:

. in the case of Class A shares, your investment in Class A shares of
all American Funds (investments representing direct purchases of
American Funds money market funds are excluded).

CDSC waivers are allowed only in the cases listed here and in the prospectus.

For information regarding the sale of shares, please refer to the prospectus.

American Funds Target Retirement Series -- Page 41
<PAGE>

SELLING SHARES

EMPLOYER-SPONSORED RETIREMENT ACCOUNTS -- Shares of the series may be sold by
contacting your plan administrator or recordkeeper.

FOR INDIVIDUAL-TYPE RETIREMENT ACCOUNTS --

The methods for selling (redeeming) shares are described more fully in the
prospectus. If you wish to sell your shares by contacting American Funds
Service Company directly, any such request must be signed by the registered
shareholders. To contact American Funds Service Company via overnight mail
or courier service, see "Purchase and exchange of shares."

A signature guarantee may be required for certain redemptions. In such an
event, your signature may be guaranteed by a domestic stock exchange or the
National Association of Securities Dealers, Inc., bank, savings association
or credit union that is an eligible guarantor institution. The Transfer
Agent reserves the right to require a signature guarantee on any
redemptions.

Additional documentation may be required for sales of shares held in
corporate, partnership or fiduciary accounts. You must include with your
written request any shares you wish to sell that are in certificate form.

If you sell Class A shares and request a specific dollar amount to be sold,
we will sell sufficient shares so that the sale proceeds, after deducting
any applicable CDSC, equals the dollar amount requested.

Redemption proceeds will not be mailed until sufficient time has passed to
provide reasonable assurance that checks or drafts (including certified or
cashier's checks) for shares purchased have cleared (which may take up to 10
business days from the purchase date). Except for delays relating to clearance
of checks for share purchases or in extraordinary circumstances (and as
permissible under the 1940 Act), sale proceeds will be paid on or before the
seventh day following receipt and acceptance of an order. Interest will not
accrue or be paid on amounts that represent uncashed distribution or redemption
checks.

SHAREHOLDER ACCOUNT SERVICES AND PRIVILEGES

The following services and privileges are generally available to all
shareholders.

AUTOMATIC INVESTMENT PLAN -- An automatic investment plan enables you to make
monthly or quarterly investments in the American Funds through automatic debits
from your bank account. To set up a plan, you must fill out an account
application and specify the amount that you would like to invest ($50 minimum
per fund) and the date on which you would like your investments to occur. The
plan will begin within 30 days after your account application is received.
Your bank account will be debited on the day or a few days before your
investment is made, depending on the bank's capabilities. The Transfer Agent
will then invest your money into the fund you specified on or around the date
you specified. If the date you specified falls on a weekend or holiday, your
money will be invested on the following business day. However, if the
following business day falls in the next month, your money will be invested
on the business day immediately preceding the weekend or holiday. If

American Funds Target Retirement Series -- Page 42
<PAGE>

your bank account cannot be debited due to insufficient funds, a stop-payment or
the closing of the account, the plan may be terminated and the related
investment reversed. You may change the amount of the investment or discontinue
the plan at any time by contacting the Transfer Agent.

AUTOMATIC REINVESTMENT -- Dividends and capital gain distributions are
reinvested in additional shares of the same class and fund at net asset value
unless you indicate otherwise on the account application. You also may elect to
have dividends and/or capital gain distributions paid in cash by informing the
fund, the Transfer Agent or your investment dealer. Dividends and capital gain
distributions paid to retirement plan shareholders will be automatically
reinvested.

If you have elected to receive dividends and/or capital gain distributions in
cash, and the postal or other delivery service is unable to deliver checks to
your address of record, or you do not respond to mailings from American Funds
Service Company with regard to uncashed distribution checks, your distribution
option will automatically be converted to having all dividends and other
distributions reinvested in additional shares.

CROSS-REINVESTMENT OF DIVIDENDS AND DISTRIBUTIONS -- For all share classes, you
may cross-reinvest dividends and capital gains (distributions) into other
American Funds in the same share class at net asset value, subject to the
following conditions:

(1) the aggregate value of your account(s) in the fund(s) paying distributions
equals or exceeds $5,000 (this is waived if the value of the account in the fund
receiving the distributions equals or exceeds that fund's minimum initial
investment requirement);

(2) if the value of the account of the fund receiving distributions is below
the minimum initial investment requirement, distributions must be automatically
reinvested; and

(3) if you discontinue the cross-reinvestment of distributions, the value of
the account of the fund receiving distributions must equal or exceed the minimum
initial investment requirement. If you do not meet this requirement within 90
days of notification, the fund has the right to automatically redeem the
account.

AUTOMATIC EXCHANGES -- For all share classes, you may automatically exchange
shares of the same class in amounts of $50 or more among any of the American
Funds on any day (or preceding business day if the day falls on a nonbusiness
day) of each month you designate.

AUTOMATIC WITHDRAWALS -- You may automatically withdraw Class A shares from any
of the funds. You can make automatic withdrawals of $50 or more as often as you
wish if your account is worth at least $10,000, or up to four times a year for
an account worth at least $5,000. You can designate the day of each period for
withdrawals and request that checks be sent to you or someone else. Withdrawals
may also be electronically deposited to your bank account. The Transfer Agent
will withdraw your money from the fund you specify on or around the date you
specify. If the date you specified falls on a weekend or holiday, the redemption
will take place on the previous business day. However, if the previous business
day falls in the preceding month, the redemption will take place on the
following business day after the weekend or holiday.

Withdrawal payments are not to be considered as dividends, yield or income.
Automatic investments may not be made into a shareholder account from which
there are automatic withdrawals. Withdrawals of amounts exceeding reinvested
dividends and distributions and

American Funds Target Retirement Series -- Page 43
<PAGE>

increases in share value would reduce the aggregate value of the shareholder's
account. The Transfer Agent arranges for the redemption by the fund of
sufficient shares, deposited by the shareholder with the Transfer Agent, to
provide the withdrawal payment specified.

ACCOUNT STATEMENTS -- Your account is opened in accordance with your
registration instructions. Transactions in the account, such as additional
investments, will be reflected on regular confirmation statements from the
Transfer Agent. Dividend and capital gain reinvestments, purchases through
automatic investment plans and certain retirement plans, as well as automatic
exchanges and withdrawals will be confirmed at least quarterly.

AMERICAN FUNDSLINE AND AMERICANFUNDS.COM -- You may check your share balance,
the price of your shares or your most recent account transaction; redeem shares
(up to $75,000 per American Funds shareholder each day) from nonretirement plan
accounts; or exchange shares around the clock with American FundsLine or using
americanfunds.com. To use American FundsLine, call 800/325-3590 from a
TouchTone(TM) telephone. Redemptions and exchanges through American FundsLine
and americanfunds.com are subject to the conditions noted above and in
"Telephone and Internet purchases, redemptions and exchanges" below. You will
need your fund number (see the list of the American Funds under "General
information -- fund numbers"), personal identification number (generally the
last four digits of your Social Security number or other tax identification
number associated with your account) and account number.

Generally, all shareholders are automatically eligible to use these services.
However, if you are not currently authorized to do so, you may complete an
American FundsLink Authorization Form. Once you establish this privilege, you,
your financial adviser or any person with your account information may use these
services.

TELEPHONE AND INTERNET PURCHASES, REDEMPTIONS AND EXCHANGES -- By using the
telephone (including American FundsLine) or the Internet (including
americanfunds.com), or fax purchase, redemption and/or exchange options, you
agree to hold the series, the Transfer Agent, any of its affiliates or mutual
funds managed by such affiliates, and each of their respective directors,
trustees, officers, employees and agents harmless from any losses, expenses,
costs or liability (including attorney fees) that may be incurred in connection
with the exercise of these privileges. Generally, all shareholders are
automatically eligible to use these services. However, you may elect to opt out
of these services by writing the Transfer Agent (you may also reinstate them at
any time by writing the Transfer Agent). If the Transfer Agent does not employ
reasonable procedures to confirm that the instructions received from any person
with appropriate account information are genuine, it and/or the series may be
liable for losses due to unauthorized or fraudulent instructions. In the event
that shareholders are unable to reach the series by telephone because of
technical difficulties, market conditions or a natural disaster, redemption and
exchange requests may be made in writing only.

SHARE CERTIFICATES -- Shares are credited to your account and certificates are
not available.

GENERAL INFORMATION

CUSTODIAN OF ASSETS -- Securities and cash owned by all funds, including
proceeds from the sale of shares of the funds and of securities in the funds'
portfolio, are held by XX, as Custodian.

American Funds Target Retirement Series -- Page 44
<PAGE>

If the funds hold non-U.S. securities, the Custodian may hold these securities
pursuant to subcustodial arrangements in non-U.S. banks or non-U.S. branches of
U.S. banks.

TRANSFER AGENT -- American Funds Service Company, a wholly owned subsidiary of
the investment adviser, maintains the records of shareholder accounts, processes
purchases and redemptions of the funds' shares, acts as dividend and capital
gain distribution disbursing agent, and performs other related shareholder
service functions. The principal office of American Funds Service Company is
located at 135 South State College Boulevard, Brea, CA 92821-5823. American
Funds Service Company is also compensated for certain transfer agency services
provided to all other share classes from the administrative services fees paid
to Capital Research and Management Company, as described under "Administrative
services agreement."

In the case of certain shareholder accounts, third parties who may be
unaffiliated with the investment adviser provide transfer agency and shareholder
services in place of American Funds Service Company. These services are rendered
under agreements with American Funds Service Company or its affiliates and the
third parties receive compensation according to such agreements. Compensation
for transfer agency and shareholder services, whether paid to American Funds
Service Company or such third parties, is ultimately paid from fund assets and
is reflected in the expenses of the funds as disclosed in the prospectus.

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM -- XX, XX, serves as the series'
independent registered public accounting firm, providing audit services,
preparation of tax returns and review of certain documents to be filed with the
Securities and Exchange Commission. The selection of the series' independent
registered public accounting firm is reviewed and determined annually by the
board of directors.

INDEPENDENT LEGAL COUNSEL -- XX, XX, serves as counsel for the series and for
independent directors in their capacities as such. Counsel does not provide
legal services to the series' investment adviser or any of its affiliated
companies. A determination with respect to the independence of the series'
"independent legal counsel" will be made at least annually by the independent
directors of the series, as prescribed by the 1940 Act and related rules.

PROSPECTUSES, REPORTS TO SHAREHOLDERS AND PROXY STATEMENTS -- The series' fiscal
year ends on DATE. Shareholders are provided updated prospectuses annually and
at least semiannually with reports showing the funds' investment portfolio or
summary investment portfolio, financial statements and other information. The
series' annual financial statements are audited by the independent registered
public accounting firm, XX. (In addition, shareholders may also receive proxy
statements for each fund.) In an effort to reduce the volume of mail
shareholders receive from the fund when a household owns more than one account,
the Transfer Agent has taken steps to eliminate duplicate mailings of
prospectuses, shareholder reports and proxy statements. To receive additional
copies of a prospectus, report or proxy statement, shareholders should contact
the Transfer Agent.

CODES OF ETHICS -- Capital Research and Management Company and its affiliated
companies, including the fund's Principal Underwriter, have adopted codes of
ethics that allow for personal investments. These codes include a ban on
acquisitions of securities pursuant to an initial public offering; restrictions
on acquisitions of private placement securities; preclearance and reporting
requirements; review of duplicate confirmation statements; annual
recertification of compliance with codes of ethics; blackout periods on personal
investing for certain investment personnel; ban

American Funds Target Retirement Series -- Page 45
<PAGE>

on short-term trading profits for investment personnel; limitations on service
as a director of publicly traded companies; and disclosure of personal
securities transactions.

LEGAL PROCEEDINGS -- On February 16, 2005, the NASD filed an administrative
complaint against the Principal Underwriter. The complaint alleges violations of
certain NASD rules by the Principal Underwriter with respect to the selection of
broker-dealer firms that buy and sell securities for mutual fund investment
portfolios. The complaint seeks sanctions, restitution and disgorgement. On
August 30, 2006, the NASD Hearing Panel ruled against the Principal Underwriter
and imposed a $5 million fine. The Principal Underwriter is appealing this
decision to the NASD's National Adjudicatory Council.

On March 24, 2005, the investment adviser and Principal Underwriter filed a
complaint against the Attorney General of the State of California in Los Angeles
County Superior Court. The complaint alleged that the Attorney General
threatened to take enforcement actions against the investment adviser and
Principal Underwriter that are without merit and preempted by federal law. On
the same day, following the filing of the investment adviser's and Principal
Underwriter's complaint, the Attorney General of the State of California filed a
complaint against the Principal Underwriter and investment adviser. Filed in Los
Angeles County Superior Court, the Attorney General's complaint alleged
violations of certain sections of the California Corporations Code with respect
to so-called "revenue sharing" disclosures in mutual fund prospectuses and
statements of additional information. On November 22, 2005, the Los Angeles
Superior Court dismissed the Attorney General's complaint. The Attorney General
is appealing the Superior Court's decision to California's Court of Appeal for
the Second Appellate District.

The investment adviser and Principal Underwriter believe that the likelihood
that these matters could have a material adverse effect on the series or on the
ability of the investment adviser or Principal Underwriter to perform their
contracts with the series is remote. The SEC is conducting a related
investigation as of the date of this statement of additional information. The
investment adviser and Principal Underwriter are cooperating fully. In addition,
a class action lawsuit has been filed in the U.S. District Court, Central
District of California, relating to these matters. Although most of the claims
in the suit were dismissed with prejudice, an amended complaint relating to
management fees has been filed. The investment adviser believes that this suit
is without merit and will defend itself vigorously. Further updates on these
issues will be available on the American Funds website (americanfunds.com) under
"American Funds regulatory matters."

American Funds Target Retirement Series -- Page 46
<PAGE>

FUND NUMBERS -- Here are the fund numbers for use with our automated telephone
line, American FundsLine/(R)/, or when making share transactions:

FUND NUMBERS
-----------------------------------------------------
CLASS CLASS CLASS CLASS CLASS
FUND CLASS A R-1 R-2 R-3 R-4 R-5
-------------------------------------------------------------------------------

STOCK AND STOCK/BOND
FUNDS
AMCAP Fund . . . . . . 002 2102 2202 2302 2402 2502
American Balanced Fund 011 2111 2211 2311 2411 2511
American Mutual Fund . 003 2103 2203 2303 2403 2503
Capital Income Builder 012 2112 2212 2312 2412 2512
Capital World Growth and
Income Fund . . . . . . 033 2133 2233 2333 2433 2533
EuroPacific Growth Fund 016 2116 2216 2316 2416 2516
Fundamental Investors . 010 2110 2210 2310 2410 2510
The Growth Fund of
America . . . . . . . . 005 2105 2205 2305 2405 2505
The Income Fund of
America . . . . . . . . 006 2106 2206 2306 2406 2506
The Investment Company
of America . . . . . . 004 2104 2204 2304 2404 2504
The New Economy Fund . 014 2114 2214 2314 2414 2514
New Perspective Fund . 007 2107 2207 2307 2407 2507
New World Fund . . . . 036 2136 2236 2336 2436 2536
SMALLCAP World Fund . . 035 2135 2235 2335 2435 2535
Washington Mutual
Investors Fund . . . . 001 2101 2201 2301 2401 2501
BOND FUNDS
American High-Income
Municipal Bond Fund . . 040 N/A N/A N/A N/A 2540
American High-Income
Trust . . . . . . . . . 021 2121 2221 2321 2421 2521
The Bond Fund of America 008 2108 2208 2308 2408 2508
Capital World Bond Fund 031 2131 2231 2331 2431 2531
Intermediate Bond Fund
of America . . . . . . 023 2123 2223 2323 2423 2523
Limited Term Tax-Exempt
Bond Fund of America . 043 N/A N/A N/A N/A 2543
Short-Term Bond Fund of
America . . . . . . . . 048 2148 2248 2348 2448 2548
The Tax-Exempt Bond Fund
of America . . . . . . 019 N/A N/A N/A N/A 2519
The Tax-Exempt Fund of
California* . . . . . . 020 N/A N/A N/A N/A 2520
The Tax-Exempt Fund of
Maryland* . . . . . . . 024 N/A N/A N/A N/A 2524
The Tax-Exempt Fund of
Virginia* . . . . . . . 025 N/A N/A N/A N/A 2525
U.S. Government
Securities Fund . . . . 022 2122 2222 2322 2422 2522
MONEY MARKET FUNDS
The Cash Management
Trust of America . . . 009 2109 2209 2309 2409 2509
The Tax-Exempt Money
Fund of America 039 N/A N/A N/A N/A 2539
The U.S. Treasury Money
Fund of America . . . . 049 2149 2249 2349 2449 2549
AMERICAN FUNDS TARGET DATE RETIREMENT
SERIES
American Funds Target
Date Retirement Fund
2010 . . . . . . . . . XX XX XX XX XX XX
American Funds Target
Date Retirement Fund
2015 . . . . . . . . . XX XX XX XX XX XX
American Funds Target
Date Retirement Fund
2020 . . . . . . . . . XX XX XX XX XX XX
American Funds Target
Date Retirement Fund
2025 . . . . . . . . . XX XX XX XX XX XX
American Funds Target
Date Retirement Fund
2030 . . . . . . . . . XX XX XX XX XX XX
American Funds Target
Date Retirement Fund
2035 . . . . . . . . . XX XX XX XX XX XX
American Funds Target
Date Retirement Fund
2040 . . . . . . . . . XX XX XX XX XX XX
American Funds Target
Date Retirement Fund
2045 . . . . . . . . . XX XX XX XX XX XX
American Funds Target
Date Retirement Fund
2050 . . . . . . . . . XX XX XX XX XX XX
___________
*Qualified for sale only in certain
jurisdictions.. . . . .

American Funds Target Retirement Series -- Page 47
<PAGE>

[This page is intentionally left blank for this filing.]

American Funds Target Retirement Series -- Page 48
<PAGE>

APPENDIX

The following descriptions of debt security ratings are based on information
provided by Moody's Investors Service and Standard & Poor's Corporation.

DESCRIPTION OF BOND RATINGS

MOODY'S
LONG-TERM RATING DEFINITIONS

Aaa
Obligations rated Aaa are judged to be of the highest quality, with minimal
credit risk.

Aa
Obligations rated Aa are judged to be of high quality and are subject to very
low credit risk.

A
Obligations rated A are considered upper-medium grade and are subject to low
credit risk.

Baa
Obligations rated Baa are subject to moderate credit risk. They are considered
medium-grade and as such may possess certain speculative characteristics.

Ba
Obligations rated Ba are judged to have speculative elements and are subject to
substantial credit risk.

B
Obligations rated B are considered speculative and are subject to high credit
risk.

Caa
Obligations rated Caa are judged to be of poor standing and are subject to very
high credit risk.

Ca
Obligations rated Ca are highly speculative and are likely in, or very near,
default, with some prospect of recovery of principal and interest.

C
Obligations rated C are the lowest rated class of bonds and are typically in
default, with little prospect for recovery of principal or interest.

NOTE: Moody's appends numerical modifiers 1, 2, and 3 to each generic rating
classification from Aa through Caa. The modifier 1 indicates that the obligation
ranks in the higher end of its generic rating category; the modifier 2 indicates
a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of
that generic rating category.

American Funds Target Retirement Series -- Page 49
<PAGE>

STANDARD & POOR'S
LONG-TERM ISSUE CREDIT RATINGS

AAA
An obligation rated AAA has the highest rating assigned by Standard & Poor's.
The obligor's capacity to meet its financial commitment on the obligation is
extremely strong.

AA
An obligation rated AA differs from the highest-rated obligations only in small
degree. The obligor's capacity to meet its financial commitment on the
obligation is very strong.

A
An obligation rated A is somewhat more susceptible to the adverse effects of
changes in circumstances and economic conditions than obligations in
higher-rated categories. However, the obligor's capacity to meet its financial
commitment on the obligation is still strong.

BBB
An obligation rated BBB exhibits adequate protection parameters. However,
adverse economic conditions or changing circumstances are more likely to lead to
a weakened capacity of the obligor to meet its financial commitment on the
obligation.

BB, B, CCC, CC, AND C
Obligations rated BB, B, CCC, CC, and C are regarded as having significant
speculative characteristics. BB indicates the least degree of speculation and C
the highest. While such obligations will likely have some quality and protective
characteristics, these may be outweighed by large uncertainties or major
exposures to adverse conditions.

BB
An obligation rated BB is less vulnerable to nonpayment than other speculative
issues. However, it faces major ongoing uncertainties or exposure to adverse
business, financial, or economic conditions which could lead to the obligor's
inadequate capacity to meet its financial commitment on the obligation.

B
An obligation rated B is more vulnerable to nonpayment than obligations rated
BB, but the obligor currently has the capacity to meet its financial commitment
on the obligation. Adverse business, financial, or economic conditions will
likely impair the obligor's capacity or willingness to meet its financial
commitment on the obligation.

CCC
An obligation rated CCC is currently vulnerable to nonpayment and is dependent
upon favorable business, financial, and economic conditions for the obligor to
meet its financial commitment on the obligation. In the event of adverse
business, financial, or economic conditions, the obligor is not likely to have
the capacity to meet its financial commitment on the obligation.

CC
An obligation rated CC is currently highly vulnerable to nonpayment.

American Funds Target Retirement Series -- Page 50
<PAGE>

C
The C rating may be used to cover a situation where a bankruptcy petition has
been filed or similar action has been taken, but payments on this obligation are
being continued.

D
An obligation rated D is in payment default. The D rating category is used when
payments on an obligation are not made on the date due even if the applicable
grace period has not expired, unless Standard & Poor's believes that such
payments will be made during such grace period. The D rating also will be used
upon the filing of a bankruptcy petition or the taking of a similar action if
payments on an obligation are jeopardized.

PLUS (+) OR MINUS (-)
The ratings from AA to CCC may be modified by the addition of a plus or minus
sign to show relative standing within the major rating categories.

FITCH
LONG-TERM CREDIT RATINGS

AAA
Highest credit quality. 'AAA' ratings denote the lowest expectation of credit
risk. They are assigned only in case of exceptionally strong capacity for
payment of financial commitments. This capacity is highly unlikely to be
adversely affected by foreseeable events.

AA
Very high credit quality. 'AA' ratings denote expectations of very low credit
risk. They indicate very strong capacity for payment of financial commitments.
This capacity is not significantly vulnerable to foreseeable events.

A
High credit quality. 'A' ratings denote expectations of low credit risk. The
capacity for payment of financial commitments is considered strong. This
capacity may, nevertheless, be more vulnerable to changes in circumstances or in
economic conditions than is the case for higher ratings.

BBB
Good credit quality. 'BBB' ratings indicate that there is currently expectations
of low credit risk. The capacity for payment of financial commitments is
considered adequate but adverse changes in circumstances and economic conditions
are more likely to impair this capacity. This is the lowest investment grade
category.

BB
Speculative. 'BB' ratings indicate that there is a possibility of credit risk
developing, particularly as the result of adverse economic change over time;
however, business or financial alternatives may be available to allow financial
commitments to be met. Securities rated in this category are not investment
grade.

B
Highly speculative.
. For issuers and performing obligations, 'B' ratings indicate that
significant credit risk is present, but a limited margin of safety remains.
Financial commitments are currently

American Funds Target Retirement Series -- Page 51
<PAGE>

being met; however, capacity for continued payment is contingent upon a
sustained, favorable business and economic environment.
. For individual obligations, may indicate distressed or defaulted
obligations with potential for extremely high recoveries. Such obligations
would possess a Recovery Rating of 'R1' (outstanding).

CCC
. For issuers and performing obligations, default is a real possibility.
Capacity for meeting financial commitments is solely reliant upon
sustained, favorable business or economic conditions.
. For individual obligations, may indicate distressed or defaulted
obligations with potential for average to superior levels of recovery.
Differences in credit quality may be denoted by plus/minus distinctions.
Such obligations typically would possess a Recovery Rating of 'R2'
(superior), or 'R3' (good) or 'R4' (average).

CC
. For issuers and performing obligations, default of some kind appears
probable.
. For individual obligations, may indicate distressed or defaulted
obligations with a Recovery Rating of 'R4' (average) or 'R5' (below
average).

C
. For issuers and performing obligations, default is imminent.
. For individual obligations, may indicate distressed or defaulted
obligations with potential for below-average to poor recoveries. Such
obligations would possess a Recovery Rating of 'R6' (poor).

RD
Indicates an entity that has failed to make due payments (within the applicable
grace period) on some but not all material financial obligations, but continues
to honor other classes of obligations.

D
Indicates an entity or sovereign that has defaulted on all of its financial
obligations. Default generally is defined as the following:

The modifiers "+" or "-" may be appended to a rating to denote relative
status within major rating categories. Such suffixes are not added to the
'AAA' Long-term rating category, to categories below 'CCC', or to
Short-term ratings other than 'F1'. (The +/- modifiers are only used to
denote issues within the CCC category, whereas issuers are only rated CCC
without the use of modifiers.

American Funds Target Retirement Series -- Page 52
<PAGE>

DESCRIPTION OF COMMERCIAL PAPER RATINGS

MOODY'S
COMMERCIAL PAPER RATINGS (HIGHEST THREE RATINGS)

P-1
Issuers (or supporting institutions) rated Prime-1 have a superior ability to
repay short-term debt obligations.

P-2
Issuers (or supporting institutions) rated Prime-2 have a strong ability to
repay short-term debt obligations.

P-3
Issuers (or supporting institutions) rated Prime-3 have an acceptable ability to
repay short-term obligations.

STANDARD & POOR'S
COMMERCIAL PAPER RATINGS (HIGHEST THREE RATINGS)

A-1
A short-term obligation rated A-1 is rated in the highest category by Standard &
Poor's. The obligor's capacity to meet its financial commitment on the
obligation is strong. Within this category, certain obligations are designated
with a plus sign (+). This indicates that the obligor's capacity to meet its
financial commitment on these obligations is extremely strong.

A-2
A short-term obligation rated A-2 is somewhat more susceptible to the adverse
effects of changes in circumstances and economic conditions than obligations in
higher rating categories. However, the obligor's capacity to meet its financial
commitment on the obligation is satisfactory.

A-3
A short-term obligation rated A-3 exhibits adequate protection parameters.
However, adverse economic conditions or changing circumstances are more likely
to lead to a weakened capacity of the obligor to meet its financial commitment
on the obligation.

American Funds Target Retirement Series -- Page 53

L	Business Address, 333 South Hope Street, Los Angeles, CA 90071
LW	Business Address, 11100 Santa Monica Blvd., 15th Floor, Los Angeles, CA 90025
B	Business Address, 135 South State College Boulevard, Brea, CA 92821
S	Business Address, 3500 Wiseman Boulevard, San Antonio, TX 78251
SF	Business Address, One Market, Steuart Tower, Suite 1800, San Francisco, CA 94105-1016
H	Business Address, 5300 Robin Hood Road, Norfolk, VA 23513
I	Business Address, 8332 Woodfield Crossing Blvd., Indianapolis, IN 46240
N	Business Address, 630 Fifth Avenue, 36^th Floor, New York, NY10111
D	Business Address, 3000 K Street N.W., Suite 230, Washington, DC 20007-5140
G1	Business Address, 3 Place des Bergues, 1201 Geneva, Switzerland

.	AMERICAN FUNDS TARGET DATE RETIREMENT SERIES, INC

ATTEST:

Steven I. Koszalka, Secretary	Michael J. Downer, Chairman

	Signature	Title

	Michael J. Downer	Chairman

	Steven I. Koszalka	Secretary

	(1) Name and Principal Business Address	(2) Positions and Offices with Underwriter	(3) Positions and Offices with Registrant
	David L. Abzug P.O. Box 2248 Agoura Hills, CA 91376	Vice President	None
	William C. Anderson 7780 Boylston Court Dublin, OH 43016	Regional Vice President	None
	Robert B. Aprison 2983 Bryn Wood Drive Madison, WI 53711	Senior Vice President	None
	T. Patrick Bardsley 36 East Woodward Blvd. Tulsa, OK 74114	Regional Vice President	None
	Shakeel A. Barkat 982 Wayson Way Davidsonville, MD 21035	Regional Vice President	None
	Steven L. Barnes 7490 Clubhouse Road Suite 100 Boulder, CO 80301	Senior Vice President	None
	Thomas M. Bartow 20 Cerchio Alto Henderson, NV 89011	Vice President	None
B	Carl R. Bauer	Vice President	None
	Michelle A. Bergeron 4160 Gateswalk Drive Smyrna, GA 30080	Senior Vice President	None
	J. Walter Best, Jr. 7003 Chadwick Drive, Suite 355 Brentwood, TN 37027	Vice President	None
	John A. Blanchard 576 Somerset Lane Northfield, IL 60093	Senior Vice President	None
	Ian B. Bodell 7003 Chadwick Drive, Suite 355 Brentwood, TN 37027	Senior Vice President	None
	Jonathan W. Botts 2231 Garden View Lane Weddington, NC 28104	Regional Vice President	None
	Bill Brady 646 Somerset Drive Indianapolis, IN 46260	Regional Vice President	None
	Mick L. Brethower 510 Cimmaron Hills Trail W. Georgetown, TX 78628	Senior Vice President	None
	C. Alan Brown 7424 Somerset Avenue St. Louis, MO 63105	Vice President	None
L	Sheryl M. Burford	Assistant Vice President	None
B	J. Peter Burns	Vice President	None
	Steven Calabria 161 Bay Avenue Huntington Bay, NY 11743	Regional Vice President	None
S	Kathleen D. Campbell	Assistant Vice President	None
	Matthew C. Carlisle 100 Oakmont Lane, #409 Belleair, FL 33756	Vice President	None
	Damian F. Carroll 40 Ten Acre Road New Britain, CT 06052	Vice President	None
	James D. Carter 560 Valley Hill Lane Knoxville, TN 37922	Regional Vice President	None
	Brian C. Casey 8002 Greentree Road Bethesda, MD 20817	Senior Vice President	None
	Victor C. Cassato 999 Green Oaks Drive Greenwood Village, CO 80121	Senior Vice President	None
	Christopher J. Cassin 120 E. Ogden Ave., Suite 106 Hinsdale, IL 60521	Senior Vice President	None
L	Denise M. Cassin	Director, Senior Vice President	None
L	David D. Charlton	Director, Senior Vice President	None
	Thomas M. Charon 262 Mulberry Drive Delafield, WI 53018	Regional Vice President	None
L	Wellington Choi	Assistant Vice President	None
	Paul A. Cieslik 90 Northington Drive Avon, CT 06001	Regional Vice President	None
L	Larry P. Clemmensen	Director	None
L	Kevin G. Clifford	Director, President and Co-Chief Executive Officer	None
H	Cheri Coleman	Vice President	None
	Ruth M. Collier 106 Central Park South, #10K New York, NY 10019	Senior Vice President	None
S	David Coolbaugh	Vice President	None
	Carlo O. Cordasco 4036 Ambassador Circle Williamsburg, VA 23188	Regional Vice President	None
B	Josie Cortez	Assistant Vice President	None
	Charles H. Cote 305 Edgeworth Lane Sewickley, PA 15143	Regional Vice President	None
	Thomas E. Cournoyer 2333 Granada Blvd. Coral Gables, FL 33134	Vice President	None
L	Michael D. Cravotta	Assistant Vice President	None
	Joseph G. Cronin 1281 Fiore Drive Lake Forest, IL 60045	Vice President	None
	William F. Daugherty 1213 Redwood Hills Circle Carlisle, PA 17015	Vice President	None
	Guy E. Decker 2990 Topaz Lane Carmel, IN 46032	Vice President	None
	Daniel J. Delianedis Edina Executive Plaza 5200 Willson Road, Suite 150 Edina, MN 55424	Senior Vice President	None
L	James W. DeLouise	Assistant Vice President	None
	James A. DePerno, Jr. 1 Nehercrest Lane Orchard Park, NY 14127	Vice President	None
L	Bruce L. DePriester	Director, Senior Vice President, Treasurer and Controller	None
	Lori A. Deuberry 130 Aurora Street Hudson, OH 44236	Regional Vice President	None
L	Dianne M. Dexter	Assistant Vice President	None
	Thomas J. Dickson 108 Wilmington Court Southlake, TX 76092	Vice President	None
	Michael A. DiLella 22 Turner’s Lake Drive Mahwah, NJ 07430	Senior Vice President	None
	G. Michael Dill 505 E. Main Street Jenks, OK 74037	Senior Vice President	None
N	Dean M. Dolan	Vice President	None
L	Hedy B. Donahue	Assistant Vice President	None
L	Michael J. Downer	Director	None
	Craig A. Duglin 4170 Vanetta Drive Studio City, CA 91604	Regional Vice President	None
	Michael J. Dullaghan 5040 Plantation Grove Lane Roanoke, VA 24012	Regional Vice President	None
I	Lloyd G. Edwards	Senior Vice President	None
	Timothy L. Ellis 1700 Lelia Drive, Suite 105 Jackson, MS 39216	Senior Vice President	None
	Kristopher A. Feldmeyer 787 Jackson Road Greenwood, IN 46142	Regional Vice President	None
L	Lorna Fitzgerald	Vice President	None
	William F. Flannery 29 Overlook Road Hopkinton, MA 01748	Regional Vice President	None
	John R. Fodor 15 Latisquama Road Southborough, MA 01772	Senior Vice President	None
L	Charles L. Freadhoff	Vice President	None
	Daniel B. Frick 845 Western Avenue Glen Ellyn, IL 60137	Vice President	None
L	Linda S. Gardner	Vice President	None
	Keith R. George 3835 East Turtle Hatch Road Springfield, MO 65809	Regional Vice President	None
L	J. Christopher Gies	Senior Vice President	None
B	Lori A. Giacomini	Assistant Vice President	None
L	David M. Givner	Secretary	None
B	Evelyn K. Glassford	Vice President	None
	Jack E. Goldin 3424 Belmont Terrace Davie, FL 33328	Regional Vice President	None
L	Earl C. Gottschalk	Vice President	None
	Jeffrey J. Greiner 8250-A Estates Parkway Plain City, OH 43064	Senior Vice President	None
	Eric M. Grey 601 Fisher Road N. Dartmouth, MA 02747	Regional Vice President	None
B	Mariellen Hamann	Vice President	None
	Derek S. Hansen 13033 Ridgedale Drive, #147 Minnetonka, MN 55305	Vice President	None
	David E. Harper 5400 Russell Cave Road Lexington, KY 40511	Senior Vice President	None
	Calvin L. Harrelson, III 2048 Kings Manor Drive Weddington, NC 28104	Regional Vice President	None
	Robert J. Hartig, Jr. 13563 Marjac Way McCordsville, IN 46055	Vice President	None
L	Linda M. Hines	Vice President	None
	Steven J. Hipsley 44 Tyler Drive Saratoga Springs, NY 12866	Regional Vice President	None
L	Russell K. Holliday	Vice President	None
	Heidi Horwitz 5 Christopher Hill Road Weston, CT 06883	Regional Vice President	None
L	Kevin B. Hughes	Vice President	None
	Ronald R. Hulsey 6202 Llano Dallas, TX 75214	Senior Vice President	None
	Marc Ialeggio 13 Prince Royal Passage Corte Madera, CA 94925	Regional Vice President	None
	Robert S. Irish 1225 Vista Del Mar Drive Delray Beach, FL 33483	Senior Vice President	None
L	Linda Johnson	Assistant Vice President	None
G1	Joanna F. Jonsson	Director	None
B	Damien M. Jordan	Senior Vice President	None
L	Marc J. Kaplan	Assistant Vice President	None
	John P. Keating 1576 Sandy Springs Dr. Orange Park, FL 32003	Vice President	None
	Brian G. Kelly 76 Daybreak Road Southport, CT 06890	Regional Vice President	None
	Andrew J. Kilbride 3080 Tuscany Court Ann Arbor, MI 48103	Regional Vice President	None
N	Dorothy Klock	Vice President	None
	Dianne L. Koske 6 Black Oak Court Poquoson, VA 23662	Assistant Vice President	None
B	Elizabeth K. Koster	Vice President	None
	Christopher F. Lanzafame 19365 Lovall Valley Court Sonoma, CA 95476	Regional Vice President	None
	Patricia D. Lathrop 822 Monterey Blvd., NE St. Petersburg, FL 33704	Regional Vice President	None
	R. Andrew LeBlanc 78 Eton Road Garden City, NY 11530	Vice President	None
	T. Blake Liberty 5506 East Mineral Lane Littleton, CO 80122	Vice President	None
	Mark J. Lien 1103 Tulip Tree Lane West Des Moines, IA 50266	Vice President	None
L	Lorin E. Liesy	Vice President	None
I	Kelle Lindenberg	Assistant Vice President	None
	Louis K. Linquata 5214 Cass Street Omaha, NE 68132	Vice President	None
	Brendan T. Mahoney 1 Union Avenue, Suite One Sudbury, MA 01776	Vice President	None
	Nathan G. Mains 7711 S. Columbine Street Centennial, CO 80122	Regional Vice President	None
	Stephen A. Malbasa 13405 Lake Shore Blvd. Cleveland, OH 44110	Director, Senior Vice President	None
	Steven M. Markel 5241 South Race Street Greenwood Village, CO 80121	Senior Vice President	None
L	Paul R. Mayeda	Assistant Vice President	None
L	Eleanor P. Maynard	Vice President	None
L	Christopher McCarthy	Vice President	None
	James R. McCrary 28812 Crestridge Rancho Palos Verdes, CA 90275	Vice President	None
L	Will McKenna	Vice President	None
S	John V. McLaughlin	Senior Vice President	None
	Terry W. McNabb 2002 Barrett Station Road St. Louis, MO 63131	Senior Vice President	None
L	Katharine McRoskey	Assistant Vice President	None
	Scott M. Meade 41 South Road Rye Beach, NH 03871	Vice President	None
	Charles L. Mitsakos 3017 11^th Avenue West Seattle, WA 98119	Regional Vice President	None
	Monty L. Moncrief 55 Chandler Creek Court The Woodlands, TX 77381	Regional Vice President	None
	David H. Morrison 7021 North Stratton Court Peoria, IL 61615	Regional Vice President	None
	Andrew J. Moscardini 832 Coldwater Creek Circle Niceville, FL 32578	Regional Vice President	None
	William E. Noe 3600 Knollwood Road Nashville, TN 37215	Senior Vice President	None
L	Heidi J. Novaes	Vice President	None
	Eric P. Olson 27 Main Street, Suite 200 Topsfield, MA 01983	Senior Vice President	None
	Jeffrey A. Olson 2708 88^th St. Court, NW Gig Harbor, WA 98332	Regional Vice President	None
	Thomas A. O’Neil 4 Hillcrest Avenue Eastborough, KS 67208	Regional Vice President	None
	Michael W. Pak 13929 SE 92^nd Street Newcastle, WA 98059	Regional Vice President	None
	W. Burke Patterson, Jr. 1643 Richland Avenue Baton Rouge, LA 70808	Regional Vice President	None
	Gary A. Peace 291 Kaanapali Drive Napa, CA 94558	Vice President	None
	Samuel W. Perry 4340 East Indian School Road Suite 21 Phoenix, AZ 85018	Regional Vice President	None
	Raleigh G. Peters 1439 Byrd Drive Berwyn, PA 19312	Regional Vice President	None
	David K. Petzke 4016 Saint Lucia Street Boulder, CO 80301	Vice President	None
	Fredric Phillips 175 Highland Avenue, 4th Floor Needham, MA 02494	Senior Vice President	None
	John Pinto 226 Country Club Drive Lansdale, PA 19446	Regional Vice President	None
	Carl S. Platou 7455 80th Place, S.E. Mercer Island, WA 98040	Senior Vice President	None
	Charles R. Porcher One Glenlake Pkwy., Suite 700 Atlanta, GA 30328	Regional Vice President	None
S	Richard P. Prior	Vice President	None
	Mike Quinn 1035 Vintage Club Drive Duluth, GA 30097	Regional Vice President	None
	John W. Rankin 1725 Centennial Club Drive Conway, AR 72034	Regional Vice President	None
	Jennifer D. Rasner 11940 Baypoint Drive Burnsville, MN 55337	Regional Vice President	None
	James P. Rayburn 3108 Roxbury Road Homewood, AL 35209	Regional Vice President	None
	Mark S. Reischmann 4125 Hermitage Drive Colorado Springs, CO 80906	Regional Vice President	None
	Steven J. Reitman 212 The Lane Hinsdale, IL 60521	Senior Vice President	None
	Brian A. Roberts 209-A 60^th Street Virginia Beach, VA 23451	Vice President	None
	Jeffrey Robinson 7 Waterville Lane Shrewsbury, MA 01545	Regional Vice President	None
L	James F. Rothenberg	Director	None
	Romolo D. Rottura 233 Glenhaven Court Swedesboro, NJ 08085	Vice President	None
	Douglas F. Rowe 414 Logan Ranch Road Georgetown, TX 78628	Vice President	None
	William M. Ryan 1408 Cortland Drive Manasquan, NJ 08736	Regional Vice President	None
L	Dean B. Rydquist	Director, Senior Vice President, Chief Compliance Officer	None
	Richard A. Sabec, Jr. 6868 Meadow Glen Drive Westerville, OH 43082	Regional Vice President	None
	Richard R. Samson 4604 Glencoe Avenue, #4 Marina del Rey, CA 90292	Senior Vice President	None
	Paul V. Santoro 28 State Street, Suite 1100 Boston, MA 02109	Vice President	None
H	Diane Sawyer	Senior Vice President	None
	Joseph D. Scarpitti 31465 St. Andrews Westlake, OH 44145	Senior Vice President	None
	Shane D. Schofield 201 McIver Street Greenville, SC 29601	Vice President	None
	Mark A. Seaman 645 Baltimore Annapolis Blvd Suite 220 Severna Park, MD 21146	Vice President	None
S	Sherrie L. Senft	Vice President	None
	James J. Sewell III 415 East Holyoke Place Claremont, CA 91711	Regional Vice President	None
	Arthur M. Sgroi 76 Fields End Drive Glenmont, NY 12077	Regional Vice President	None
L	R. Michael Shanahan	Director	None
L	Michael J. Sheldon	Vice President	None
	Frederic J. Shipp 1352 Sanjo Farms Drive Chesapeake, VA 23320	Regional Vice President	None
	Daniel S. Shore 3734 North Greenview Avenue Chicago, IL 60613	Vice President	None
	Brad Short 1601 Seal Way Seal Beach, CA 90740	Vice President	None
	David W. Short 1000 RIDC Plaza, Suite 212 Pittsburgh, PA 15238	Chairman of the Board and Co-Chief Executive Officer	None
	Nathan W. Simmons 496 Dogwood Trail Quincy, FL 32352	Regional Vice President	None
	William P. Simon, Jr. 237 Lancaster Avenue, Suite 207 Devon, PA 19333	Director, Senior Vice President	None
L	Connie F. Sjursen	Vice President	None
	Jerry L. Slater 1820 38^th Ave. E Seattle, WA 98112	Senior Vice President	None
LW	John H. Smet	Director	None
	Rodney G. Smith 15851 Dallas Parkway, Suite 500 Addison, TX 75001-6016	Senior Vice President	None
	J. Eric Snively 2548 Violet Street Glenview, IL 60025	Regional Vice President	None
	Anthony L. Soave 3780 Foxglove Court NE Grand Rapids, MI 49525	Vice President	None
L	Therese L. Soullier	Vice President	None
	Nicholas D. Spadaccini 855 Markley Woods Way Cincinnati, OH 45230	Senior Vice President	None
L	Kristen J. Spazafumo	Vice President	None
	Mark D. Steburg 12508 160^th Avenue Southeast Renton, WA 98059	Regional Vice President	None
	Michael P. Stern 213 Aptos Place Danville, CA 94526	Regional Vice President	None
	Brad Stillwagon 2438 Broadmeade Road Louisville, KY 40205	Vice President	None
	Thomas A. Stout 1004 Ditchley Road Virginia Beach, VA 23451	Vice President	None
	Craig R. Strauser 175 Berwick Lake Oswego, OR 97034	Senior Vice President	None
L	Libby J. Syth	Vice President	None
L	Drew W. Taylor	Assistant Vice President	None
L	Larry I. Thatt	Assistant Vice President	None
	Gary J. Thoma 401 Desnoyer Kaukauna, WI 54130	Regional Vice President	None
	Cynthia M. Thompson 4 Franklin Way Ladera Ranch, CA 92694	Regional Vice President	None
	David Tippets 15 Player Green Place The Woodlands, TX 77382	Regional Vice President	None
L	James P. Toomey	Vice President	None
I	Christopher E. Trede	Vice President	None
	George F. Truesdail 400 Abbotsford Court Charlotte, NC 28270	Senior Vice President	None
	Scott W. Ursin-Smith 103 E. Blithedale Avenue, Suite 1 Mill Valley, CA 94941	Senior Vice President	None
S	Cindy Vaquiax	Assistant Vice President	None
	J. David Viale 39 Old Course Drive Newport Beach, CA 92660	Vice President	None
D	Bradley J. Vogt	Director	None
L	A. Jordan Wallens 1501 Maple Avenue, #602 Evanston, IL 60201	Regional Vice President	None
	Thomas E. Warren 119 Faubel St. Sarasota, FL 34242	Vice President	None
L	J. Kelly Webb	Senior Vice President	None
	Gregory J. Weimer 206 Hardwood Drive Venetia, PA 15367	Director, Senior Vice President	None
B	Timothy W. Weiss	Director	None
SF	Gregory W. Wendt	Director	None
	George J. Wenzel 261 Barden Road Bloomfield Hills, MI 48304	Vice President	None
	Brian E. Whalen 4072 Yellow Ginger Glen Norcross, GA 30092	Regional Vice President	None
L	N. Dexter Williams, Jr.	Senior Vice President	None
L	Alan J. Wilson	Director	None
	Andrew L. Wilson 11163 Rich Meadow Drive Great Falls, VA 22066	Vice President	None
	Steven C. Wilson 7529 Summit Ridge Road Middleton, WI 53562	Regional Vice President	None
	Timothy J. Wilson 501 Valley Brook Road, Suite 204 McMurray, PA 15317	Vice President	None
B	Laura L. Wimberly	Vice President	None
	Marshall D. Wingo Promenade Two, 25^th Floor 1230 Peachtree Street, N.E. Atlanta, GA 30309	Director, Senior Vice President	None
	Kurt A. Wuestenberg 975 Arboretum Drive Saline, MI 48176	Vice President	None
	William R. Yost 9463 Olympia Drive Eden Prairie, MN 55347	Senior Vice President	None
	Jason P. Young 11141 Whitetail Lane Olathe, KS 66061	Regional Vice President	None
	Jonathan A. Young 2145 Hickory Forrest Chesapeake, VA 23322	Regional Vice President	None
	Scott D. Zambon 2178 Pieper Lane Tustin, CA 92782	Regional Vice President	None