Prospectus Supplement 39858
1/98
dated January 12, 1998 to:
_________________________________________________________________
_____________
PUTNAM BALANCED RETIREMENT FUND (the "fund")
Prospectuses dated February 28, 1997
The third paragraph under the heading "How the fund is managed"
is replaced with the following:
The following officers of Putnam Investment Management, Inc.
("Putnam Management") have had primary responsibility for the day-
to-day management of the fund's portfolio since the years stated
below:
Business experience
Year (at least 5 years)
------- -------------------------
Edward P. Bousa 1992 Employed as an investment
Senior Vice President professional by Putnam
Management since 1992.
Jeffrey J. Kobylarz 1998 Employed as an investment
Senior Vice President professional by
Putnam Management since
May, 1993. Prior to May,
1993, Mr. Kobylarz was an
Assistant Vice President
and analyst at Dean
Witter Intercapital.
Robert M. Paine 1997 Employed as an investment
Senior Vice President professional by Putnam
Management since 1987.
Charles G. Pohl 1996 Employed as an investment
Senior Vice President professional by Putnam
Management since 1983.
Kenneth J. Taubes 1994 Employed as an investment
Senior Vice President professional by Putnam
Management since 1991.
Rosemary H. Thomsen 1995 Employed as an investment
Senior Vice President professional by Putnam
Management since 1986.
