[SHIP LOGO VANGUARD /(R)/]

VANGUARD(R) TARGET RETIREMENT FUNDS
SUPPLEMENT TO THE PROSPECTUS DATED JUNE 7, 2006

NEW  TARGET  INDEX  FOR  ONE OF THE  UNDERLYING  FUNDS  OF THE  VANGUARD  TARGET
RETIREMENT FUNDS

Vanguard Emerging Markets Stock Index Fund, one of the underlying funds in which
the Vanguard  Target  Retirement  Funds invest,  has adopted the Morgan  Stanley
Capital  International/(R)/  (MSCI/(R)/)  Emerging  Markets  Index as its target
index,  after  approval  by the  Fund's  board  of  trustees.  The Fund had been
tracking the Select Emerging Markets Index, which was developed  exclusively for
Vanguard by MSCI and was designed to reduce risk by excluding  certain countries
because  of  concerns  about  illiquidity,  repatriation  of  capital,  or entry
barriers to those  markets.  Over time,  the former target index was adjusted to
reflect  changes  in the  world's  markets,  adding  countries  until it came to
reflect the  broader  MSCI  Emerging  Markets  Index,  thereby  eliminating  the
advantages of following the Select Emerging Markets Index.

The new index comprises more than 850 issues from 25 emerging markets. Like the
previous index, the MSCI Emerging Markets Index measures the performance of
stocks issued by companies located in emerging-market countries, so the
investment objective and risks described in the Fund's current prospectus have
not changed. That said, the new target index could provide different investment
returns (either lower or higher) or different levels of volatility from those of
the previous index.


The paragraph describing the Emerging Markets Stock Index Fund in the SECURITY
SELECTION section is replaced with the following text:


Vanguard Emerging Markets Stock Index Fund seeks to track the performance of the
MSCI Emerging  Markets  Index by investing in the common stocks  included in the
Index. This Index is made up of approximately 850 common stocks of companies
located in 25 emerging markets of Europe, Asia, Africa, and Latin America. The
Index is most heavily weighted in South Korea, Taiwan, Brazil, China, and
Russia.







Vanguard and the ship logo are trademarks of The Vanguard Group, Inc. The funds
or securities referred to herein that are offered by The Vanguard Group and
track an MSCI index are not sponsored, endorsed, or promoted by MSCI, and MSCI
bears no liability with respect to any such funds or securities. For such funds
or securities, the Statement of Additional Information contains a more detailed
description of the limited relationship MSCI has with The Vanguard Group.

(C)2006 The Vanguard Group, Inc. All rights reserved.
Vanguard Marketing Corporation, Distributor.                      PSD308 082006