Baby Boomers To Hit Retirement Savings Milestone; Retirement Leader Cautions, ''Don't Touch That Nest Egg Yet''; The First Boomers Turn 59 1/2 on July 1.

DES MOINES, Iowa -- It's here. The first members of the baby boom generation soon will be eligible to tap into their Individual Retirement Account (IRA) nest eggs without penalty when they turn 59 1/2 on July 1. But with this milestone, the Principal Financial Group(R), the nation's 401(k) leader and total retirement solutions innovator, cautions boomers before they consider touching their retirement savings.

"This milestone represents a great opportunity for boomers to stop and review their retirement savings plans. We're urging people in this situation to sit down with their financial professionals and take time for a retirement check up," said Ron Danilson, senior vice president, Retirement & Investor Services, The Principal(R). "Some boomers may find themselves in a good position, but the majority will need to save more in order to live securely throughout retirement."

According to Danilson, the majority of boomers today could outlive their retirement savings due to a number of factors. Contrary to previous generations, many workers today do not have a defined benefit pension plan, and face rising health insurance costs as they move into retirement age. In addition, because nearly half of workers retire earlier than expected cutting their earning years, many are forced to stretch savings over a longer retirement period.

While IRAs are only one source of retirement savings, the ability to withdraw without penalty should not be taken lightly. Danilson says workers that are five or ten years away from retirement should consider increasing their savings and work with their advisors to develop a plan to turn their savings into a lifetime "paycheck."

The Principal urges boomers to take the following steps before they consider tapping into that IRA:

--Determine your desired retirement age and update retirement goals.

--Consider where you will live and lifestyle issues.

--Find out where you will get retirement income from and when it will start:

--Review your benefit statement from Social Security;

--Review retirement plans from previous employers;

--If you have a defined benefit plan, ask your employer for an estimate of benefits.

--Seek assistance from your financial professionals to:

--Determine your monthly income and expenses.

--Consider ways to fill gaps between expenses and income (by working longer, working part time in retirement, and/or saving more).

--Discuss the tax implications of taking withdrawals.

--Consider how your savings is invested and make sure the asset allocation is appropriate for you as you're nearing retirement.

Finally, Danilson says, "Boomers don't have to start taking withdrawals until they are age 70 1/2. By following these financial check-up steps, boomers may find they don't need that money just yet," he said.

About the Principal Financial Group

The Principal Financial Group(R) (The Principal (R))(1) is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance and banking through its diverse family of financial services companies. A member of the Fortune 500, the Principal Financial Group has $174.7 billion in assets under management(2) and serves some 14.9 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com

(1) "The Principal Financial Group" and "The Principal" are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.

(2) As of March 31, 2005