N-CSR 1 a_retirementready.htm PUTNAM RETIREMENTREADY FUNDS a_retirementready.htm
UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549 
 
FORM N-CSR 
 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED 
MANAGEMENT INVESTMENT COMPANIES 
 
Investment Company Act file number: (811- 21598)   
 
Exact name of registrant as specified in charter: Putnam RetirementReady Funds 
 
Address of principal executive offices: One Post Office Square, Boston, Massachusetts 02109 
 
Name and address of agent for service:  Beth S. Mazor, Vice President 
  One Post Office Square 
  Boston, Massachusetts 02109 
 
Copy to:  John W. Gerstmayr, Esq. 
  Ropes & Gray LLP 
  One International Place 
  Boston, Massachusetts 02110 
 
Registrant’s telephone number, including area code:  (617) 292-1000 
   
Date of fiscal year end: July 31, 2008     
 
Date of reporting period: August 1, 2007— July 31, 2008 

Item 1. Report to Stockholders:

The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940:


What makes
Putnam different?

A time-honored tradition in money management

Since 1937, our values have been rooted in a profound sense of responsibility for the money entrusted to us.

A prudent approach to investing

We use a research-driven team approach to seek consistent, dependable, superior investment results over time, although there is no guarantee a fund will meet its objectives.

Funds for every investment goal

We offer a broad range of mutual funds and other financial products so investors and their financial representatives can build diversified portfolios.

A commitment to doing what’s right for investors

With a focus on investment performance, below-average expenses, and in-depth information about our funds, we put the interests of investors first and seek to set the standard for integrity and service.

Industry-leading service

We help investors, along with their financial representatives, make informed investment decisions with confidence.


In 1830, Massachusetts Supreme Judicial Court Justice Samuel Putnam established The Prudent Man Rule, a legal foundation for responsible money management.

THE PRUDENT MAN RULE

All that can be required of a trustee to invest is that he shall conduct himself faithfully and exercise a sound discretion. He is to observe how men of prudence, discretion, and intelligence manage their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income, as well as the probable safety of the capital to be invested.

Putnam
RetirementReady®
Funds

7 | 31 | 08
Annual Report

Message from the Trustees  1 
About the fund  2 
Performance snapshot  4 
Interview with your fund’s Portfolio Leader  5 
Underlying investments  7 
Performance in depth.  9 
Expenses  19 
Your fund’s management.  22 
Terms and definitions  23 
Trustee approval of management contract  24 
Other information for shareholders.  28 
Financial statements  29 
Federal tax information  80 
Brokerage commissions.  80 
About the Trustees  81 
Officers  84 

Message from the Trustees

Dear Fellow Shareholder:

The past 12 months have presented the economy with a growing set of challenges, and financial markets have responded with losses across a wide range of sectors globally. It is always unsettling to see the markets and one’s invest ment returns declining. Times like these are a reminder of why it is important to keep a long-term perspective, to ensure that your portfolio is well diversified, and to seek the counsel of your financial representative.

At Putnam, we continually strive to offer the best investment returns, innovative products, and award-winning service to our shareholders. In keeping with this tradition, we are pleased to announce that Robert L. Reynolds, a well-known leader and visionary in the mutual fund industry, has joined the Putnam leadership team as President and Chief Executive Officer of Putnam Investments, effective July 1, 2008. Charles E. Haldeman, Jr., former President and CEO, has taken on the role of Chairman of Putnam Investment Management, LLC, the firm’s fund management company.

Mr. Reynolds brings to Putnam substantial industry experience and an outstanding record of success, including serving as Vice Chairman and Chief Operating Officer at Fidelity Investments from 2000 to 2007. We look forward to working with Bob as we continue our goal to position Putnam to exceed our shareholders’ expectations.

We would also like to take this opportunity to welcome new shareholders to the fund and to thank all of our investors for your continued confidence in Putnam.


About the fund
Offering one-step diversification that adjusts automatically over time

Unpredictable markets and the demands of a busy life can make it a challenge to monitor your retirement investments. Using a mix of investments can help you reduce risk and increase your exposure to opportunities in different markets — but it adds to the challenge of keeping your portfolio on track. Putnam RetirementReady Funds provide a one-step approach to investment diversification that gradually shifts toward a more income-oriented strategy to keep your risk exposure appropriate to your investment time horizon.

Each RetirementReady Fund invests in a combination of Putnam mutual funds to provide you with exposure to a variety of asset classes and investment styles. RetirementReady Funds also have different target dates, indicating when investors expect to retire or otherwise begin withdrawing assets. Each fund’s asset allocation generally changes annually to become more focused on income generation over time. The funds focus more heavily on aggressive, higher-risk investments when their target dates are far off, and emphasize more conservative, lower-risk investments when their target dates are near. Putnam RetirementReady Maturity Fund will change its target allocations until 2010. Thereafter, it will have a constant allocation focused primarily on bonds and money market instruments. The fund is designed for investors who are already retired or who expect to use the invested assets in the near future.

While diversification can help protect your returns from excessive volatility, it cannot protect against market losses. However, by choosing a RetirementReady Fund based on the year you plan to start withdrawing assets — typically in retirement — you can get the advantages of diversification and pursue maximum returns while seeking to maintain a level of risk you are comfortable with — all in one convenient investment.

The underlying Putnam funds can invest in international investments, which involve risks such as currency fluctuations, economic instability, and political developments. Additional risks may be associated with emerging-market securities, including illiquidity and volatility. The underlying Putnam funds can invest some or all of their assets in small and/or midsize companies and such investments increase the risk of fluctuations in the value of your investment. The underlying Putnam funds can also have a significant portion of their holdings in bonds. Mutual funds that invest in bonds are subject to certain risks, including interest-rate risk, credit risk, and inflation risk. As interest rates rise, the prices of bonds fall. Long-term bonds have more exposure to interest-rate risk than short-term bonds. Lower-rated bonds may offer higher yields in return for more risk. Unlike bonds, bond funds have ongoing fees and expenses. These risks apply to any underlying Putnam fund with a significant portion of its assets invested in bonds. Please see the prospectus for additional information about investment strategies and related risks of the underlying funds.

Money market funds are not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other governmental agency. Although Putnam Money Market Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.


Performance snapshot

Average annual total return (%) comparison as of 7/31/08

Fund returns for class A shares before sales charges

  2050 Fund  2045 Fund  2040 Fund  2035 Fund 
  NAV  NAV  NAV  NAV 
Life of fund*  4.70%  5.26%  5.18%  4.97% 
3 years  2.22  2.52  2.46  2.39 
1 year  –14.25  –13.88  –13.48  –12.79 
  
  2030 Fund  2025 Fund  2020 Fund  2015 Fund 
  NAV  NAV  NAV  NAV 
Life of fund*  4.83%  4.72%  4.17%  3.82% 
3 years  2.41  2.47  2.14  2.19 
1 year  –12.03  –11.07  –9.55  –6.78 
 
  2010 Fund  Maturity Fund     
      Lehman Aggregate 
  NAV  NAV  S&P 500 Index  Bond Index 
 
Life of fund*  3.03%  2.59%  5.08%  3.94% 
3 years  1.95  1.87  2.85  4.37 
1 year  –4.40  –3.37  –11.09  6.15 

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will fluctuate, and you may have a gain or a loss when you sell your shares. Performance of class A shares assumes reinvestment of distributions and does not account for taxes. Fund returns in the chart do not reflect a sales charge. See pages 5 and 9–18 for additional performance information. For a portion of the periods, these funds may have limited expenses, without which returns would have been lower. A 1% short-term trading fee may apply. To obtain the most recent month-end performance, visit www.putnam.com.

* With the exception of the 2050 Fund (inception: 5/2/05), the inception date of all share classes of the RetirementReady Funds is 11/1/04.

“We view the funds as lifelong investments
that help people accumulate assets while they
are working and then protect those assets
during retirement.”

Jeffrey Knight, Portfolio Leader, Putnam RetirementReady Funds

4


Jeff, financial markets have been turbulent over the past year. Can you put the year in perspective for shareholders?

Yes. There is no question that we have seen a downturn in both the financial markets and the economy in the past year. Even at the beginning of the fund’s fiscal year in August 2007, the problems that had begun with subprime mortgages in the bond market were spreading to the stock market. The financials sector was hit hard as banks and brokerages reported losses on their investments in mortgage-backed securities, but stocks in general, both in the United States and internationally, have fallen to lower levels. The credit crunch has been compounded by a steep rise in commodity prices, particularly for food and energy, which has caused economic growth in many regions of the world to stall.

Fortunately, bond markets have offered some refuge. For most of the period, bonds with high credit quality have generated positive returns. While concerns about inflation have caused temporary setbacks, the disappointing results in fixed-income markets have been limited to specific areas, including some mortgage-backed and Nhigh-yield securities. International bonds have struggled as the U.S. dollar began to rally late in the fiscal year.

To sum up, it has been a difficult year for investors who have a majority of their assets in stocks. We are not out of the woods because housing prices continue to decline and the economy is flirting with recession. On a positive note, actions by the Federal Reserve and the Treasury Department to shore up the financials sector, particularly the large mortgage companies Fannie Mae and Freddie Mac, have been helpful. It’s a situation where we need to have a heightened awareness of risks as we research opportunities.

How has built-in diversification served Putnam RetirementReady Funds?

We view the funds as lifelong investment vehicles that help investors accumulate assets while they are working and then protect those assets during retirement. Each fund has allocations to stock funds, bond funds, and money market funds because the ups and downs of stock market cycles can undercut long-term growth. When stocks underperform, bonds and cash often lend some stability and keep the funds on track toward investors’

Broad market index and fund performance

This comparison shows the performance of broad market indexes for the 12 months ended 7/31/08. See the previous page and pages 9–18 for additional fund performance information. Index descriptions can be found on page 23.


5

goals. Also, we make sure that the mix of investments is more conservative for those investors who are in or near retirement in order to further protect their savings. We regard our approach as prudent, with a generous allocation to bond funds at each time frame, unlike others in the industry that have increased allocations to stocks.

I also want to mention that early in this fiscal year we took steps to enhance diversification by adding more underlying funds to the mix, while keeping the stock, bond, and cash weightings of each fund the same. For example, we added funds to target mid-cap growth stocks and mid-cap value stocks, and added income funds to gain exposure to a wider range of corporate and mortgage-backed bonds. We also added funds that target growth and value style stocks in international markets. This change allows us to capture the wider range of investment opportunities that we see in markets today.

Did the increased diversification help fund performance?

Yes, it has, though the initial benefits were uneven. For example, we increased exposure to mid-cap stocks, which have performed better than stocks of large companies. On the other hand, funds with positions in some mortgage-backed securities and international bonds have not helped performance, because they have lagged high-quality U.S. bonds.

The inclusion of a greater number — and wider variety —of funds has allowed us to pursue opportunities created by recent financial market turmoil in a more comprehensive way. Today, we can find assets that we believe to be undervalued across all areas of the capital markets. The increased diversification of these funds has allowed us to position assets for a recovery in these investments, particularly within fixed-income holdings.

What is your outlook for financial markets in the coming year?

We remain in a bear market whose duration is, of course, uncertain. Weak economic growth and higher inflation create a difficult environment for stocks in the United States and internationally. High energy prices may cause a consumer recession that could hurt the retail, manufacturing, food, and transportation industries, in particular. It will be difficult for the economy to recover while the credit crunch continues. Volatility may persist, emphasizing the importance of diversification once again. We expect that bonds will continue to perform better than stocks. During the summer, we saw some easing in food and energy prices, and as these declines work through the economy, bonds sensitive to inflation may perform better.

In addition to the benefits of diversification, we think it’s important to remember that bear markets come to an end. Now is a good time to accumulate assets. Stock market averages have remained roughly unchanged in real terms over the past decade, but profits are much higher than they were, making stocks more attractive. For those investing with a steady plan for retirement, the stock market today offers a chance to invest money for long-term capital appreciation.

Jeff, thanks for talking with us today.

The views expressed in this report are exclusively those of Putnam Management. They are not meant as investment advice.

I N  T H E  N E W S

In early September, the U.S. government announced plans to take over the Federal National Mortgage Association (Fannie Mae) and the Federal Home Mortgage Corporation (Freddie Mac), the companies that play key roles in the U.S. home mortgage market. Created by Congress as “government-sponsored enterprises,” Fannie Mae and Freddie Mac are publicly traded companies with a mandate to foster a liquid mortgage market by acting as reliable purchasers of mortgage loans, which they repackage and sell as mortgage-backed securities. Under the plan, the U.S. Treasury will buy $1 billion of preferred shares in each company and place both companies under the control of the Federal Housing Finance Authority. The government also has pledged to provide up to $200 billion to the companies as they cope with heavy losses resulting from rising home mortgage defaults and falling real estate prices.

6

Composition of the funds’
underlying investments

Each Putnam RetirementReady Fund invests, to varying degrees, in a variety of Putnam mutual funds. Effective September 2007, the assets of the funds are allocated among 15 Putnam funds. This section describes the goals and strategies of the underlying Putnam funds.

Putnam Voyager Fund

The fund seeks capital appreciation by investing primarily in growth stocks of midsize and large U.S. companies. Growth stocks are issued by companies that Putnam believes are fast-growing and whose earnings Putnam believes are likely to increase over time. Growth in earnings may lead to an increase in the price of the stock. Although the fund invests mainly in midsize and large companies, it can invest in companies of any size.

The Putnam Fund for Growth and Income

The fund seeks capital growth and current income by investing primarily in common stocks of large U.S. companies, with a focus on value stocks that offer the potential for capital growth, current income, or both. Value stocks are stocks that Putnam believes are currently undervalued by the market. The fund’s management team looks for companies undergoing positive change. If the team is correct and other investors recognize the value of the company, the price of the stock may rise.

Putnam Equity Income Fund

The fund seeks to invest in undervalued stocks of mid-and large-cap companies that are poised to experience positive change that may improve financial performance. The fund targets stocks of mature companies that pay above-average dividend yields.

Putnam Investors Fund

The fund seeks long-term growth of capital and any increased income that results from this growth by investing primarily in large-cap stocks of well-established U.S. companies. The fund targets companies whose business worth is believed to be more than their current stock prices indicate, whether the stock is considered growth or value.

Putnam Vista Fund

The fund seeks capital appreciation by investing mainly in midsize companies across a wide range of industry sectors. The fund targets relatively well-established companies that may have higher growth rates than larger, mature companies, but offer a greater degree of stability than smaller, less mature companies.

Putnam Mid Cap Value Fund

The fund seeks capital appreciation by employing a strategy of identifying undervalued, high-quality companies among the market’s mid-capitalization offerings. The fund targets smaller companies that have recently grown to midsize and larger companies in industries that have recently fallen out of favor.

Putnam Capital Opportunities Fund

The fund seeks long-term growth of capital by investing primarily in common stocks of small and midsize U.S. companies that Putnam believes have favorable investment potential. For example, the fund may purchase stocks of companies whose stock price is lower than the value Putnam places on the company. The fund may also consider other factors that Putnam believes will cause the stock price to rise.

Putnam International Equity Fund

The fund seeks capital appreciation by investing primarily in common stocks of companies outside the United States that Putnam believes have favorable investment potential. For example, the fund may purchase stocks of companies whose stock price is lower than the value Putnam places on the company. The fund may also consider other factors that Putnam believes will cause the stock price to rise. The fund invests mainly in midsize and large companies, although it can invest in companies of any size. Although the fund emphasizes

7

investments in developed countries, it may also invest in companies located in emerging markets.

Putnam International New Opportunities Fund

The fund invests mainly in companies outside the United States that Putnam believes are experiencing rapid earnings, sales, or business unit growth, and have the potential for positive earnings surprises. The fund primarily targets large and midsize growth companies with superior competitive positions within their industries.

Putnam International Growth and Income Fund

The fund invests primarily in stocks of mid- and large-cap foreign companies that the management team believes are undervalued. It seeks capital growth, with current income as a secondary objective.

Putnam Income Fund

The fund seeks high current income consistent with what Putnam believes to be prudent risk. The fund invests mainly in bonds that are obligations of companies and governments worldwide denominated in U.S. dollars, are either investment grade or below investment grade (sometimes referred to as “junk bonds”), and have intermediate- to long-term maturities (three years or longer).

Putnam Diversified Income Trust

The fund seeks high current income consistent with preservation of capital by investing in investment-grade, high-yield, and non-U.S. fixed-income securities. Fund holdings and sector classifications reflect the diversification of the fixed-income market.

Putnam High Yield Advantage Fund

The fund seeks high current income and, as a secondary objective, capital growth, by investing in a diversified portfolio of high-yield bonds that includes a broad range of industries and issuers.

Putnam Income Strategies Fund

The fund seeks current income consistent with what Putnam Management considers to be prudent risk, with capital appreciation as a secondary objective, by investing in a diversified portfolio of investment-grade and below-investment-grade bonds, equities, and other investments selected for yield and moderate risk levels.

Putnam Money Market Fund

The fund seeks as high a rate of current income as Putnam Management believes is consistent with preservation of capital and maintenance of liquidity. The fund invests mainly in instruments that are high quality and have short-term maturity.

Money market funds are not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other governmental agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.

Allocations by fund as of 7/31/08

Percentages based on market value. Portfolio composition will vary over time. Due to rounding, percentages may not equal 100%.

                  Putnam  Putnam           
    The              Inter-  Inter-           
    Putnam          Putnam  Putnam  national  national    Putnam       
    Fund for  Putnam      Putnam  Capital  Inter-  New  Growth    Diver-  Putnam  Putnam  Putnam 
  Putnam  Growth  Equity  Putnam  Putnam  Mid Cap  Opport-  national  Opport-  and  Putnam  sified  High Yield  Income  Money 
RetirementReady  Voyager  and  Income  Investors  Vista  Value  unities  Equity  unities  Income  Income  Income  Advantage  Strategies  Market 
Fund  Fund  Income  Fund  Fund  Fund  Fund  Fund  Fund  Fund  Fund  Fund  Trust  Fund  Fund  Fund 
2050 Fund  15.5%  7.8%  7.9%  15.3%  3.6%  3.7%  11.6%  9.9%  9.8%  9.9%  2.0%  0.0%  2.0%  0.0%  1.0% 
2045 Fund  15.2%  7.8%  7.8%  15.1%  3.4%  3.5%  11.2%  9.9%  9.7%  9.8%  2.3%  0.9%  2.0%  0.0%  1.5% 
2040 Fund  14.8%  7.4%  7.5%  14.7%  3.3%  3.3%  10.5%  9.1%  9.1%  9.1%  3.5%  2.9%  2.3%  0.0%  2.5% 
2035 Fund  14.3%  7.1%  7.3%  14.2%  3.2%  3.2%  9.9%  8.2%  8.4%  8.5%  4.7%  4.6%  3.4%  0.0%  3.0% 
2030 Fund  13.3%  6.8%  6.8%  13.2%  2.9%  2.9%  8.7%  8.2%  7.8%  7.9%  6.3%  6.6%  4.5%  0.0%  3.8% 
2025 Fund  12.9%  6.4%  6.6%  12.8%  2.6%  2.6%  8.1%  6.7%  6.8%  6.8%  8.7%  8.5%  5.0%  0.0%  5.7% 
2020 Fund  11.7%  5.8%  6.0%  11.6%  2.4%  2.4%  7.7%  4.0%  4.5%  4.5%  11.4%  11.1%  5.0%  3.5%  8.2% 
2015 Fund  8.4%  4.5%  4.3%  8.4%  1.2%  1.2%  6.8%  2.9%  1.5%  1.5%  12.5%  16.1%  5.0%  13.9%  12.0% 
2010 Fund  5.4%  1.9%  3.0%  5.3%  0.0%  0.0%  5.2%  2.1%  0.0%  0.0%  10.5%  20.5%  4.9%  24.1%  17.2% 
Maturity Fund  3.4%  0.0%  7.0%  3.4%  0.0%  0.0%  3.2%  0.0%  0.0%  0.0%  4.8%  17.7%  5.0%  35.4%  20.2% 

8

Your fund’s performance

This section shows your fund’s performance, price, and distribution information for periods ended July 31, 2008, the end of its most recent fiscal year. In accordance with regulatory requirements for mutual funds, we also include performance as of the most recent calendar quarter-end and expense information taken from the fund’s current prospectus. Performance should always be considered in light of a fund’s investment strategy. Data represents past performance. Past performance does not guarantee future results. More recent returns may be less or more than those shown. Investment return and principal value will fluctuate, and you may have a gain or a loss when you sell your shares. Performance information does not reflect any deduction for taxes a shareholder may owe on fund distributions or on the redemption of fund shares. For the most recent month-end performance, please visit the Individual Investors section of www.putnam.com or call Putnam at 1-800-225-1581. Class Y shares are generally only available to corporate and institutional clients and clients in other approved programs. See the Terms and Definitions section in this report for definitions of the share classes offered by your fund.

Fund performance Total return for periods ended 7/31/08

    Class A  Class B  Class C  Class M  Class R  Class Y 
(inception dates)  (11/1/04)  (11/1/04)  (11/1/04)  (11/1/04)  (11/1/04)  (11/1/04) 
    NAV  POP  NAV  CDSC  NAV  CDSC  NAV  POP  NAV  NAV 
2050 Fund*  Life of fund  16.14%  9.46%  13.31%  10.48%  13.34%  13.34%  14.18%  10.20%  15.14%  17.06% 
  Annual average  4.70  2.82  3.91  3.11  3.92  3.92  4.16  3.03  4.43  4.96 
 
  3 year  6.82  0.67  4.43  1.83  4.47  4.47  5.18  1.50  5.98  7.63 
  Annual average  2.22  0.22  1.46  0.61  1.47  1.47  1.70  0.50  1.95  2.48 
 
  1 year  –14.25  –19.18  –14.91  –18.64  –14.90  –15.64  –14.69  –17.68  –14.47  –14.04 
2045 Fund†  Life of fund  21.23  14.24  17.85  15.49  17.86  17.86  19.01  14.84  20.17  22.37 
  Annual average  5.26  3.61  4.47  3.91  4.47  4.47  4.74  3.75  5.01  5.52 
 
  3 year  7.74  1.55  5.36  3.23  5.33  5.33  6.17  2.46  6.99  8.55 
  Annual average  2.52  0.51  1.76  1.07  1.75  1.75  2.02  0.81  2.28  2.77 
 
  1 year  –13.88  –18.82  –14.52  –17.71  –14.52  –15.16  –14.29  –17.28  –14.08  –13.66 
2040 Fund†  Life of fund  20.87  13.93  17.53  15.11  17.58  17.58  18.64  14.49  19.82  22.01 
  Annual average  5.18  3.53  4.39  3.82  4.41  4.41  4.66  3.67  4.93  5.44 
 
  3 year  7.56  1.38  5.18  2.99  5.21  5.21  5.97  2.26  6.80  8.38 
  Annual average  2.46  0.46  1.70  0.99  1.71  1.71  1.95  0.75  2.22  2.72 
 
  1 year  –13.48  –18.45  –14.12  –17.44  –14.11  –14.77  –13.90  –16.92  –13.68  –13.26 
2035 Fund  Life of fund  19.96  13.06  16.64  14.27  16.71  16.71  17.75  13.63  18.74  21.08 
  Annual average  4.97  3.32  4.18  3.62  4.20  4.20  4.45  3.46  4.68  5.23 
 
  3 year  7.33  1.17  4.95  2.80  5.00  5.00  5.75  2.04  6.42  8.14 
  Annual average  2.39  0.39  1.62  0.92  1.64  1.64  1.88  0.68  2.10  2.64 
 
  1 year  –12.79  –17.81  –13.46  –16.80  –13.45  –14.12  –13.23  –16.27  –13.01  –12.61 
2030 Fund  Life of fund  19.38  12.51  16.05  13.66  16.03  16.03  17.13  13.03  18.22  20.44 
  Annual average  4.83  3.19  4.04  3.47  4.04  4.04  4.30  3.32  4.56  5.08 
 
  3 year  7.40  1.23  4.99  2.82  4.98  4.98  5.77  2.06  6.55  8.18 
  Annual average  2.41  0.41  1.64  0.93  1.63  1.63  1.89  0.68  2.14  2.66 
 
  1 year  –12.03  –17.08  –12.70  –16.08  –12.72  –13.39  –12.49  –15.56  –12.28  –11.84 
2025 Fund  Life of fund  18.89  12.07  15.61  13.24  15.60  15.60  16.68  12.60  17.79  20.02 
  Annual average  4.72  3.08  3.94  3.37  3.94  3.94  4.19  3.21  4.46  4.98 
 
  3 year  7.58  1.38  5.19  3.02  5.20  5.20  5.95  2.25  6.78  8.39 
  Annual average  2.47  0.46  1.70  1.00  1.70  1.70  1.95  0.74  2.21  2.72 
 
  1 year  –11.07  –16.18  –11.74  –15.16  –11.74  –12.43  –11.53  –14.62  –11.30  –10.85 
2020 Fund  Life of fund  16.59  9.89  13.33  10.86  13.34  13.34  14.41  10.40  15.59  17.68 
  Annual average  4.17  2.54  3.39  2.78  3.39  3.39  3.65  2.67  3.93  4.43 
 
  3 year  6.57  0.43  4.18  1.90  4.18  4.18  4.97  1.30  5.80  7.37 
  Annual average  2.14  0.14  1.37  0.63  1.37  1.37  1.63  0.43  1.90  2.40 
 
  1 year  –9.55  –14.75  –10.26  –13.92  –10.24  –10.98  –10.03  –13.18  –9.78  –9.33 
2015 Fund  Life of fund  15.12  8.51  11.96  9.40  11.97  11.97  13.04  9.08  14.16  16.22 
  Annual average  3.82  2.20  3.05  2.42  3.06  3.06  3.32  2.34  3.59  4.08 
 
  3 year  6.70  0.57  4.35  1.95  4.33  4.33  5.14  1.45  5.96  7.52 
  Annual average  2.19  0.19  1.43  0.65  1.42  1.42  1.68  0.48  1.95  2.45 
 
  1 year  –6.78  –12.14  –7.48  –11.48  –7.47  –8.27  –7.24  –10.48  –7.02  –6.54 

9

Fund performance Total return for periods ended 7/31/08 cont.

    Class A  Class B  Class C  Class M  Class R  Class Y 
(inception dates)  (11/1/04)  (11/1/04)  (11/1/04)  (11/1/04)  (11/1/04)  (11/1/04) 
    NAV  POP  NAV  CDSC  NAV  CDSC  NAV  POP  NAV  NAV 
2010 Fund  Life of fund  11.86%  5.44%  8.77%  6.09%  8.77%  8.77%  9.81%  5.97%  10.89%  12.91% 
  Annual average  3.03  1.42  2.26  1.59  2.26  2.26  2.52  1.56  2.79  3.29 
 
  3 year  5.98  –0.11  3.62  1.06  3.61  3.61  4.39  0.75  5.20  6.75 
  Annual average  1.95  –0.04  1.19  0.35  1.19  1.19  1.44  0.25  1.70  2.20 
 
  1 year  –4.40  –9.90  –5.11  –9.43  –5.11  –5.97  –4.87  –8.20  –4.63  –4.16 
Maturity  Life of fund  10.09  3.75  7.00  4.29  7.11  7.11  8.04  4.26  9.08  11.11 
Fund  Annual average  2.59  0.99  1.82  1.12  1.85  1.85  2.08  1.12  2.34  2.85 
 
  3 year  5.70  –0.38  3.33  0.68  3.39  3.39  4.13  0.46  4.90  6.50 
  Annual average  1.87  –0.13  1.10  0.23  1.12  1.12  1.36  0.15  1.61  2.12 
 
  1 year  –3.37  –8.94  –4.12  –8.56  –4.06  –4.95  –3.87  –7.24  –3.62  –3.12 

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. After sales charge returns (public offering price, or POP) for class A and M shares reflect a maximum 5.75% and 3.50% load, respectively, as of 1/2/08. Class B share returns reflect the applicable contingent deferred sales charge (CDSC), which is 5% in the first year, declining to 1% in the sixth year, and is eliminated thereafter. Class C shares reflect a 1% CDSC for the first year that is eliminated thereafter. Class R and Y shares have no initial sales charge or CDSC. Performance for class B, C, M, R, and Y shares before their inception is derived from the historical performance of class A shares, adjusted for the applicable sales charge (or CDSC) and, except for class Y shares, the higher operating expenses for such shares.

For a portion of the periods, these funds limited expenses, without which returns would have been lower.

A 1% short-term trading fee may be applied to shares exchanged or sold within 7 days of purchase.

* The inception date of Putnam RetirementReady 2050 Fund is 5/2/05 for all share classes.

† Because no class R shares of the fund were outstanding on 12/20/05 and 12/21/05, class R performance for the period from 12/19/05 to 12/21/05 is based on class A performance, adjusted for the applicable sales charge and the higher operating expenses for class R shares.

Change in the value of a $10,000 investment ($9,425 after sales charge)

Cumulative total return from 5/2/05 to 7/31/08

Putnam RetirementReady 2050 Fund

Past performance does not indicate future results. At the end of the same time period, a $10,000 investment in the fund’s class B shares would have been valued at $11,048 with the contingent deferred sales charges. A $10,000 investment in the fund’s class C shares would have been valued at $11,334 and no contingent deferred sales charges would apply. A $10,000 investment in the fund’s class M shares ($9,650 after sales charge) would have been valued at $11,020 at public offering price. A $10,000 investment in the fund’s class R and class Y shares would have been valued at $11,514 and $11,706, respectively. See first page of performance section for performance calculation method.

10

Change in the value of a $10,000 investment ($9,425 after sales charge)

Cumulative total return from 11/1/04 to 7/31/08

Putnam RetirementReady 2045 Fund

Past performance does not indicate future results. At the end of the same time period, a $10,000 investment in the fund’s class B shares would have been valued at $11,549 with the contingent deferred sales charges. A $10,000 investment in the fund’s class C shares would have been valued at $11,786 and no contingent deferred sales charges would apply. A $10,000 investment in the fund’s class M shares ($9,650 after sales charge) would have been valued at $11,484 at public offering price. A $10,000 investment in the fund’s class R and class Y shares would have been valued at $12,017 and $12,237, respectively. See first page of performance section for performance calculation method.

Change in the value of a $10,000 investment ($9,425 after sales charge)

Cumulative total return from 11/1/04 to 7/31/08

Putnam RetirementReady 2040 Fund

 

Past performance does not indicate future results. At the end of the same time period, a $10,000 investment in the fund’s class B shares would have been valued at $11,511 with the contingent deferred sales charges. A $10,000 investment in the fund’s class C shares would have been valued at $11,758 and no contingent deferred sales charges would apply. A $10,000 investment in the fund’s class M shares ($9,650 after sales charge) would have been valued at $11,449 at public offering price. A $10,000 investment in the fund’s class R and class Y shares would have been valued at $11,982 and $12,201, respectively. See first page of performance section for performance calculation method.

11

Change in the value of a $10,000 investment ($9,425 after sales charge)

Cumulative total return from 11/1/04 to 7/31/08

Putnam RetirementReady 2035 Fund

Past performance does not indicate future results. At the end of the same time period, a $10,000 investment in the fund’s class B shares would have been valued at $11,427 with the contingent deferred sales charges. A $10,000 investment in the fund’s class C shares would have been valued at $11,671 and no contingent deferred sales charges would apply. A $10,000 investment in the fund’s class M shares ($9,650 after sales charge) would have been valued at $11,363 at public offering price. A $10,000 investment in the fund’s class R and class Y shares would have been valued at $11,874 and $12,108, respectively. See first page of performance section for performance calculation method.

Change in the value of a $10,000 investment ($9,425 after sales charge)

Cumulative total return from 11/1/04 to 7/31/08

Putnam RetirementReady 2030 Fund

Past performance does not indicate future results. At the end of the same time period, a $10,000 investment in the fund’s class B shares would have been valued at $11,366 with the contingent deferred sales charges. A $10,000 investment in the fund’s class C shares would have been valued at $11,603 and no contingent deferred sales charges would apply. A $10,000 investment in the fund’s class M shares ($9,650 after sales charge) would have been valued at $11,303 at public offering price. A $10,000 investment in the fund’s class R and class Y shares would have been valued at $11,822 and $12,044, respectively. See first page of performance section for performance calculation method.

12

Change in the value of a $10,000 investment ($9,425 after sales charge)

Cumulative total return from 11/1/04 to 7/31/08

Putnam RetirementReady 2025 Fund

 

Past performance does not indicate future results. At the end of the same time period, a $10,000 investment in the fund’s class B shares would have been valued at $11,324 with the contingent deferred sales charges. A $10,000 investment in the fund’s class C shares would have been valued at $11,560 and no contingent deferred sales charges would apply. A $10,000 investment in the fund’s class M shares ($9,650 after sales charge) would have been valued at $11,260 at public offering price. A $10,000 investment in the fund’s class R and class Y shares would have been valued at $11,779 and $12,002, respectively. See first page of performance section for performance calculation method.

Change in the value of a $10,000 investment ($9,425 after sales charge)

Cumulative total return from 11/1/04 to 7/31/08

Putnam RetirementReady 2020 Fund

 

Past performance does not indicate future results. At the end of the same time period, a $10,000 investment in the fund’s class B shares would have been valued at $11,086 with the contingent deferred sales charges. A $10,000 investment in the fund’s class C shares would have been valued at $11,334 and no contingent deferred sales charges would apply. A $10,000 investment in the fund’s class M shares ($9,650 after sales charge) would have been valued at $11,040 at public offering price. A $10,000 investment in the fund’s class R and class Y shares would have been valued at $11,559 and $11,768 respectively. See first page of performance section for performance calculation method.

13

Change in the value of a $10,000 investment ($9,425 after sales charge)

Cumulative total return from 11/1/04 to 7/31/08

Putnam RetirementReady 2015 Fund

 

Past performance does not indicate future results. At the end of the same time period, a $10,000 investment in the fund’s class B shares would have been valued at $10,940 with the contingent deferred sales charges. A $10,000 investment in the fund’s class C shares would have been valued at $11,197 and no contingent deferred sales charges would apply. A $10,000 investment in the fund’s class M shares ($9,650 after sales charge) would have been valued at $10,908 at public offering price. A $10,000 investment in the fund’s class R and class Y shares would have been valued at $11,416 and $11,622, respectively. See first page of performance section for performance calculation method.

Change in the value of a $10,000 investment ($9,425 after sales charge)

Cumulative total return from 11/1/04 to 7/31/08

Putnam RetirementReady 2010 Fund

 

Past performance does not indicate future results. At the end of the same time period, a $10,000 investment in the fund’s class B shares would have been valued at $10,609 with the contingent deferred sales charges. A $10,000 investment in the fund’s class C shares would have been valued at $10,877 and no contingent deferred sales charges would apply. A $10,000 investment in the fund’s class M shares ($9,650 after sales charge) would have been valued at $11,020 at public offering price. A $10,000 investment in the fund’s class R and class Y shares would have been valued at $11,089 and $11,291, respectively. See first page of performance section for performance calculation method.

14

Change in the value of a $10,000 investment ($9,425 after sales charge)

Cumulative total return from 11/1/04 to 7/31/08

Putnam RetirementReady Maturity Fund

Past performance does not indicate future results. At the end of the same time period, a $10,000 investment in the fund’s class B shares would have been valued at $10,429 with the contingent deferred sales charges. A $10,000 investment in the fund’s class C shares would have been valued at $10,711 and no contingent deferred sales charges would apply. A $10,000 investment in the fund’s class M shares ($9,650 after sales charge) would have been valued at $10,426 at public offering price. A $10,000 investment in the fund’s class R and class Y shares would have been valued at $10,908 and $11,111, respectively. See first page of performance section for performance calculation method.

Comparative index returns For periods ended 7/31/08

    Lehman Aggregate 
  S&P 500 Index  Bond Index 
Life of fund*  20.43%  15.64% 
Annual average  5.08  3.94 
3 year  8.81  13.71 
Annual average  2.85  4.37 
1 year  –11.09  6.15 

Index results should be compared to fund performance at net asset value.

* Life-of-fund period begins at 11/1/04, the inception date of all the Putnam RetirementReady Funds with the exception of the 2050 Fund (inception: 5/2/05)

Fund price and distribution information For the 12-month period ended 7/31/08

2050 Fund  Distributions  Class A  Class B  Class C  Class M  Class R  Class Y 
 
  Number  1  1  1  1  1  1 
 
  Income  $1.5257  $1.0747  $1.3677  $1.3417  $1.4977  $1.6857 
 
  Capital gains — Long-term  1.9750  1.9750  1.9750  1.9750  1.9750  1.9750 
 
  Capital gains — Short-term  4.6263  4.6263  4.6263  4.6263  4.6263  4.6263 
 
  Total  $8.1270  $7.6760  $7.9690  $7.9430  $8.0990  $8.2870 
 
  Share value  NAV  POP  NAV  NAV  NAV  POP  NAV  NAV 
 
  7/31/07  $63.60  $67.48*  $63.12  $63.43  $63.41  $65.71*  $63.42  $63.84 
 
  7/31/08  47.53  50.43  47.12  47.14  47.27  48.98  47.27  47.72 
     
 
2045 Fund  Distributions  Class A  Class B  Class C  Class M  Class R  Class Y 
 
  Number  1  1  1  1  1  1 
  Income  $2.7902  $2.3832  $2.4002  $1.0442  $2.7772  $3.0242 
 
  Capital gains — Long-term  12.6560  12.6560  12.6560  12.6560  12.6560  12.6560 
 
  Capital gains — Short-term  4.1018  4.1018  4.1018  4.1018  4.1018  4.1018 
 
  Total  $19.5480  $19.1410  $19.1580  $17.8020  $19.5350  $19.7820 
 
  Share value  NAV  POP  NAV  NAV  NAV  POP  NAV  NAV 
 
  7/31/07  $79.24  $84.07*  $76.34  $76.85  $77.20  $80.00*  $80.59  $87.06 
 
  7/31/08  51.35  54.48  48.79  49.21  50.83  52.67  52.38  58.05 

15

Fund price and distribution information For the 12-month period ended 7/31/08 cont.

2040 Fund  Distributions  Class A  Class B  Class C  Class M  Class R  Class Y 
 
  Number  1  1  1  1  1  1 
  Income  $2.7938  $2.2478  $2.5788  $2.2908  $2.8138  $3.0098 
 
  Capital gains — Long-term  12.2760  12.2760  12.2760  12.2760  12.2760  12.2760 
 
  Capital gains — Short-term  2.4922  2.4922  2.4922  2.4922  2.4922  2.4922 
 
  Total  $17.5620  $17.0160  $17.3470  $17.0590  $17.5820  $17.7780 
 
  Share value  NAV  POP  NAV  NAV  NAV  POP  NAV  NAV 
 
  7/31/07  $78.37  $83.15*  $75.43  $75.69  $75.81  $78.56*  $79.90  $85.80 
 
  7/31/08  52.56  55.77  50.07  50.01  50.50  52.33  53.72  58.96 
  
 
2035 Fund  Distributions  Class A  Class B  Class C  Class M  Class R  Class Y 
 
  Number  1  1  1  1  1  1 
  Income  $2.8134  $2.3774  $2.4524  $2.4864  $2.7874  $3.0194 
 
  Capital gains — Long-term  12.1000  12.1000  12.1000  12.1000  12.1000  12.1000 
 
  Capital gains — Short-term  1.9266  1.9266  1.9266  1.9266  1.9266  1.9266 
 
  Total  $16.8400  $16.4040  $16.4790  $16.5130  $16.8140  $17.0460 
 
  Share value  NAV  POP  NAV  NAV  NAV  POP  NAV  NAV 
 
  7/31/07  $75.48  $80.08*  $72.25  $72.42  $72.84  $75.48*  $74.06  $82.84 
 
  7/31/08  51.10  54.22  48.25  48.34  48.81  50.58  49.75  57.48 
   
 
2030 Fund  Distributions  Class A  Class B  Class C  Class M  Class R  Class Y 
 
  Number  1  1  1  1  1  1 
  Income  $2.8203  $2.3303  $2.4343  $2.4933  $2.8303  $3.0263 
 
  Capital gains — Long-term  12.3470  12.3470  12.3470  12.3470  12.3470  12.3470 
 
  Capital gains — Short-term  1.4307  1.4307  1.4307  1.4307  1.4307  1.4307 
 
  Total  $16.5980  $16.1080  $16.2120  $16.2710  $16.6080  $16.8040 
 
  Share value  NAV  POP  NAV  NAV  NAV  POP  NAV  NAV 
 
  7/31/07  $74.13  $78.65*  $71.81  $72.17  $71.92  $74.53*  $72.08  $80.65 
 
  7/31/08  50.59  53.68  48.57  48.78  48.65  50.41  48.63  56.28 
 
2025 Fund  Distributions  Class A  Class B  Class C  Class M  Class R  Class Y 
 
  Number  1  1  1  1  1  1 
  Income  $2.9071  $2.4351  $2.4761  $2.5551  $2.8911  $3.1251 
 
  Capital gains — Long-term  12.7660  12.7660  12.7660  12.7660  12.7660  12.7660 
 
  Capital gains — Short-term  1.3249  1.3249  1.3249  1.3249  1.3249  1.3249 
 
  Total  $16.9980  $16.5260  $16.5670  $16.6460  $16.9820  $17.2160 
 
  Share value  NAV  POP  NAV  NAV  NAV  POP  NAV  NAV 
 
  7/31/07  $77.02  $81.72*  $73.72  $73.99  $74.22  $76.91*  $74.22  $77.39 
 
  7/31/08  53.39  56.65  50.45  50.65  50.92  52.77  50.77  53.67 
    
 
2020 Fund  Distributions  Class A  Class B  Class C  Class M  Class R  Class Y 
 
  Number  1  1  1  1  1  1 
  Income  $2.6782  $2.2532  $2.3022  $2.4342  $2.6392  $2.8762 
 
  Capital gains — Long-term  9.3080  9.3080  9.3080  9.3080  9.3080  9.3080 
 
  Capital gains — Short-term  0.7978  0.7978  0.7978  0.7978  0.7978  0.7978 
 
  Total  $12.7840  $12.3590  $12.4080  $12.5400  $12.7450  $12.9820 
 
  Share value  NAV  POP  NAV  NAV  NAV  POP  NAV  NAV 
 
  7/31/07  $69.20  $73.42*  $67.43  $67.77  $67.79  $70.25*  $67.88  $74.57 
 
  7/31/08  51.07  54.19  49.43  49.70  49.73  51.53  49.77  55.90 

16

Fund price and distribution information For the 12-month period ended 7/31/08 cont.

2015 Fund  Distributions  Class A  Class B  Class C  Class M  Class R  Class Y 
 
  Number  1  1  1  1  1  1 
  Income  $2.7851  $2.2881  $2.2161  $2.4971  $2.7631  $2.9741 
 
  Capital gains — Long-term  6.3180  6.3180  6.3180  6.3180  6.3180  6.3180 
 
  Capital gains — Short-term  0.4249  0.4249  0.4249  0.4249  0.4249  0.4249 
 
  Total  $9.5280  $9.0310  $8.9590  $9.2400  $9.5060  $9.7170 
 
  Share value  NAV  POP  NAV  NAV  NAV  POP  NAV  NAV 
 
  7/31/07  $67.89  $72.03*  $66.22  $66.35  $66.75  $69.17*  $66.79  $68.18 
 
  7/31/08  54.46  57.78  52.94  53.13  53.39  55.33  53.31  54.71 
  
 
2010 Fund  Distributions  Class A  Class B  Class C  Class M  Class R  Class Y 
 
  Number  1  1  1  1  1  1 
  Income  $2.7279  $2.3249  $2.3779  $2.3889  $2.6409  $2.8879 
 
  Capital gains — Long-term    2.6886  2.6886  2.6886    2.6886  2.6886  2.6886 
 
  Capital gains — Short-term    0.2195  0.2195  0.2195    0.2195  0.2195  0.2195 
 
  Total  $5.6360  $5.2330  $5.2860  $5.2970  $5.5490  $5.7960 
 
  Share value  NAV  POP  NAV  NAV  NAV  POP  NAV  NAV 
 
  7/31/07  $59.21  $62.82*  $57.84  $57.67  $57.85  $59.95*  $58.00  $62.15 
 
  7/31/08  51.26  54.39  49.94  49.73  50.02  51.83  50.06  54.06 
   
 
Maturity Fund  Distributions  Class A  Class B  Class C  Class M  Class R  Class Y 
 
  Number  12  12  12  12  12  12 
  Income  $2.3309  $1.8719  $1.8949  $2.0709  $2.2019  $2.4699 
 
  Capital gains — Long-term  2.1580  2.1580  2.1580  2.1580  2.1580  2.1580 
 
  Capital gains — Short-term  0.2871  0.2871  0.2871  0.2871  0.2871  0.2871 
 
  Total  $4.7760  $4.3170  $4.3400  $4.5160  $4.6470  $4.9150 
 
  Share value  NAV  POP  NAV  NAV  NAV  POP  NAV  NAV 
 
  7/31/07  $57.13  $60.62*  $57.17  $57.27  $57.27  $59.35*  $57.15  $57.27 
 
  7/31/08  50.60  53.69  50.68  50.78  50.72  52.56  50.61  50.74 
 

* Reflects an increase in sales charges that took effect on 1/2/08.

Fund performance for most recent calendar year Total return for periods ended 6/30/08

    Class A  Class B  Class C  Class M  Class R  Class Y 
(inception dates)  (11/1/04)  (11/1/04)  (11/1/04)  (11/1/04)  (11/1/04)  (11/1/04) 
    NAV  POP  NAV  CDSC  NAV  CDSC  NAV  POP  NAV  NAV 
2050 Fund*  Life of fund  18.36%  11.55%  15.57%  12.69%  15.58%  15.58%  16.43%  12.36%  17.36%  19.27% 
  Annual average  5.46  3.51  4.67  3.84  4.67  4.67  4.92  3.75  5.18  5.72 
 
  3 years  13.08  6.59  10.55  7.79  10.56  10.56  11.33  7.43  12.15  13.92 
  Annual average  4.18  2.15  3.40  2.53  3.40  3.40  3.64  2.42  3.90  4.44 
 
  1 year  –16.25  –21.06  –16.86  –20.51  –16.88  –17.60  –16.66  –19.58  –16.46  –16.04 
2045 Fund†  Life of fund  23.52  16.40  20.15  17.74  20.16  20.16  21.28  17.03  22.44  24.65 
  Annual average  5.93  4.23  5.13  4.55  5.13  5.13  5.40  4.38  5.67  6.19 
 
  3 years  14.00  7.44  11.46  9.21  11.46  11.46  12.33  8.39  13.17  14.87 
  Annual average  4.46  2.42  3.68  2.98  3.68  3.68  3.95  2.72  4.21  4.73 
 
  1 year  –15.89  –20.73  –16.52  –19.64  –16.52  –17.15  –16.33  –19.25  –16.10  –15.69 
2040 Fund†  Life of fund  23.08  16.01  19.76  17.29  19.79  19.79  20.85  16.62  22.03  24.20 
  Annual average  5.82  4.13  5.04  4.44  5.04  5.04  5.30  4.28  5.58  6.08 
 
  3 years  13.71  7.17  11.17  8.87  11.18  11.18  12.01  8.08  12.88  14.53 
  Annual average  4.38  2.34  3.59  2.87  3.60  3.60  3.85  2.62  4.12  4.63 
 
  1 year  –15.33  –20.20  –15.96  –19.21  –15.96  –16.61  –15.75  –18.70  –15.54  –15.13 
2035 Fund  Life of fund  22.05  15.03  18.77  16.36  18.84  18.84  19.85  15.66  20.84  23.19 
  Annual average  5.58  3.89  4.80  4.22  4.82  4.82  5.06  4.04  5.29  5.85 
 
  3 years  13.12  6.62  10.62  8.35  10.67  10.67  11.43  7.54  12.14  13.99 
  Annual average  4.19  2.16  3.42  2.71  3.44  3.44  3.67  2.45  3.89  4.46 
 
  1 year  –14.52  –19.43  –15.15  –18.42  –15.15  –15.80  –14.93  –17.90  –14.72  –14.30 

17

Fund performance for most recent calendar year Total return for periods ended 6/30/08 cont.

    Class A  Class B  Class C  Class M  Class R  Class Y 
(inception dates)  (11/1/04)  (11/1/04)  (11/1/04)  (11/1/04)  (11/1/04)  (11/1/04) 
    NAV  POP  NAV  CDSC  NAV  CDSC  NAV  POP  NAV  NAV 
2030 Fund  Life of fund  21.43%  14.44%  18.10%  15.67%  18.10%  18.10%  19.18%  15.00%  20.27%  22.47% 
  Annual average  5.43  3.74  4.64  4.05  4.64  4.64  4.90  3.88  5.16  5.68 
 
  3 years  12.88  6.40  10.33  8.05  10.35  10.35  11.16  7.27  11.97  13.68 
  Average annual  4.12  2.09  3.33  2.61  3.34  3.34  3.59  2.37  3.84  4.37 
 
  1 year  –13.55  –18.52  –14.22  –17.55  –14.23  –14.89  –14.01  –17.02  –13.79  –13.37 
2025 Fund  Life of fund  20.79  13.85  17.51  15.10  17.50  17.50  18.61  14.46  19.69  21.90 
  Annual average  5.28  3.60  4.50  3.91  4.49  4.49  4.76  3.75  5.02  5.55 
 
  3 years  12.68  6.20  10.16  7.89  10.16  10.16  11.00  7.11  11.83  13.52 
  Average annual  4.06  2.03  3.28  2.56  3.28  3.28  3.54  2.32  3.80  4.32 
 
  1 year  –12.50  –17.52  –13.16  –16.53  –13.15  –13.83  –12.93  –15.98  –12.71  –12.28 
2020 Fund  Life of fund  18.17  11.38  14.93  12.43  14.96  14.96  16.00  11.93  17.17  19.24 
  Annual average  4.66  2.98  3.87  3.24  3.87  3.87  4.13  3.12  4.41  4.91 
 
  3 years  10.94  4.56  8.44  6.06  8.47  8.47  9.27  5.44  10.13  11.75 
  Average annual  3.52  1.50  2.74  1.98  2.75  2.75  3.00  1.78  3.27  3.77 
 
  1 year  –10.84  –15.97  –11.53  –15.14  –11.51  –12.23  –11.30  –14.41  –11.07  –10.63 
2015 Fund  Life of fund  16.27  9.58  13.14  10.55  13.15  13.15  14.20  10.20  15.34  17.35 
  Annual average  4.19  2.52  3.42  2.77  3.42  3.42  3.68  2.68  3.97  4.46 
 
  3 years  10.07  3.73  7.63  5.15  7.62  7.62  8.44  4.64  9.29  10.91 
  Annual average  3.25  1.23  2.48  1.69  2.48  2.48  2.74  1.52  3.01  3.51 
 
  1 year  –7.80  –13.11  –8.48  –12.43  –8.47  –9.26  –8.24  –11.45  –8.02  –7.56 
2010 Fund  Life of fund  12.67  6.20  9.62  6.92  9.62  9.62  10.67  6.80  11.71  13.70 
  Annual average  3.30  1.65  2.53  1.84  2.53  2.53  2.80  1.81  3.06  3.56 
 
  3 years  8.06  1.85  5.64  3.04  5.64  5.64  6.48  2.76  7.29  8.87 
  Annual average  2.62  0.61  1.85  1.00  1.85  1.85  2.11  0.91  2.37  2.87 
 
  1 year  –4.67  –10.15  –5.39  –9.69  –5.40  –6.26  –5.13  –8.45  –4.90  –4.44 
Maturity  Life of fund  10.70  4.33  7.65  4.91  7.76  7.76  8.67  4.86  9.69  11.68 
Fund  Annual average  2.81  1.16  2.03  1.31  2.06  2.06  2.29  1.30  2.55  3.06 
 
  3 years  7.02  0.85  4.61  1.93  4.68  4.68  5.41  1.72  6.20  7.81 
  Annual average  2.29  0.28  1.51  0.64  1.54  1.54  1.77  0.57  2.03  2.54 
 
  1 year  –3.66  –9.21  –4.40  –8.82  –4.37  –5.26  –4.16  –7.52  –3.91  –3.44 
  
* The inception date of Putnam RetirementReady 2050 Fund is 5/2/05 for all share classes.

† Because no class R shares of the fund were outstanding on 12/20/05 and 12/21/05, class R performance for the period from 12/19/05 to 12/21/05 is based on class A performance, adjusted for the applicable sales charge and the higher operating expenses for class R shares.

18

Total annual operating expenses For the fiscal year ended 7/31/07

    Class A  Class B  Class C  Class M  Class R  Class Y 
2050 Fund  Net expense*  1.27%  2.02%  2.02%  1.77%  1.52%  1.02% 
  Total annual fund operating expense  1.31%  2.06%  2.06%  1.81%  1.56%  1.06% 
2045 Fund  Net expense*  1.26%  2.01%  2.01%  1.76%  1.51%  1.01% 
  Total annual fund operating expense  1.27%  2.02%  2.02%  1.77%  1.52%  1.02% 
2040 Fund  Net expense*  1.25%  2.00%  2.00%  1.75%  1.50%  1.00% 
  Total annual fund operating expense  1.26%  2.01%  2.01%  1.76%  1.51%  1.01% 
2035 Fund  Net expense*  1.24%  1.99%  1.99%  1.74%  1.49%  0.99% 
  Total annual fund operating expense  1.25%  2.00%  2.00%  1.75%  1.50%  1.00% 
2030 Fund  Net expense*  1.21%  1.96%  1.96%  1.71%  1.46%  0.96% 
  Total annual fund operating expense  1.22%  1.97%  1.97%  1.72%  1.47%  0.97% 
2025 Fund  Net expense*  1.19%  1.94%  1.94%  1.69%  1.44%  0.94% 
  Total annual fund operating expense  1.20%  1.95%  1.95%  1.70%  1.45%  0.95% 
2020 Fund  Net expense*  1.15%  1.90%  1.90%  1.65%  1.40%  0.90% 
  Total annual fund operating expense  1.16%  1.91%  1.91%  1.66%  1.41%  0.91% 
2015 Fund  Net expense*  1.07%  1.82%  1.82%  1.57%  1.32%  0.82% 
  Total annual fund operating expense  1.08%  1.83%  1.83%  1.58%  1.33%  0.83% 
2010 Fund  Net expense*  0.99%  1.74%  1.74%  1.49%  1.24%  0.74% 
  Total annual fund operating expense  1.01%  1.76%  1.76%  1.51%  1.26%  0.76% 
Maturity Fund  Total annual fund operating expense  0.97%  1.72%  1.72%  1.47%  1.22%  0.72% 

Expense information in this table is taken from the most recent prospectus, is subject to change, and may differ from that shown in the next section and in the financial highlights of this report. Expenses are shown as a percentage of average net assets.

* Reflects Putnam Management’s decision to contractually limit expenses through 7/31/08.

Your fund’s expenses

As a mutual fund investor, you pay ongoing expenses, such as management fees, distribution fees (12b-1 fees), and other expenses. In the most recent six-month period, your fund limited these expenses; had it not done so, expenses would have been higher. Using the following information, you can estimate how these expenses affect your investment and compare them with the expenses of other funds. You may also pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. Expense information also does not include the fees and expenses of the underlying Putnam mutual funds in which the RetirementReady Funds invest. For more information, see your fund’s prospectus or talk to your financial representative.

Review your fund’s expenses

The first table in this section shows the expenses you would have paid on a $1,000 investment in each of the Putnam RetirementReady Funds from February 1, 2008, to July 31, 2008. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses. You may use the information in this table to estimate the expenses that you paid over the period. Simply divide your account value by $1,000, and then multiply the result by the number in the first line (“Expenses paid per $1,000) for the class of shares you own.

19

    Class A  Class B  Class C  Class M  Class R  Class Y 
2050 Fund  Expenses paid per $1,000*  $1.69  $5.30  $5.30  $4.10  $2.90  $0.48 
  Ending value (after expenses)  $942.70  $939.00  $939.20  $940.30  $941.40  $943.80 
2045 Fund  Expenses paid per $1,000*  $1.69  $5.31  $5.31  $4.10  $2.90  $0.48 
  Ending value (after expenses)  $943.60  $940.10  $940.20  $941.50  $942.60  $945.00 
2040 Fund  Expenses paid per $1,000*  $1.69  $5.31  $5.31  $4.10  $2.90  $0.48 
  Ending value (after expenses)  $944.40  $941.00  $941.10  $942.20  $943.40  $945.60 
2035 Fund  Expenses paid per $1,000*  $1.69  $5.31  $5.31  $4.11  $2.90  $0.48 
  Ending value (after expenses)  $946.30  $942.80  $942.90  $943.90  $945.30  $947.40 
2030 Fund  Expenses paid per $1,000*  $1.70  $5.32  $5.32  $4.11  $2.90  $0.48 
  Ending value (after expenses)  $947.90  $944.60  $944.40  $945.60  $946.80  $949.00 
2025 Fund  Expenses paid per $1,000*  $1.70  $5.32  $5.32  $4.12  $2.91  $0.49 
  Ending value (after expenses)  $950.00  $946.30  $946.40  $947.40  $948.60  $951.10 
2020 Fund  Expenses paid per $1,000*  $1.70  $5.34  $5.34  $4.13  $2.91  $0.49 
  Ending value (after expenses)  $954.60  $950.90  $950.80  $952.10  $953.20  $955.70 
2015 Fund  Expenses paid per $1,000*  $1.71  $5.36  $5.36  $4.14  $2.93  $0.49 
  Ending value (after expenses)  $962.20  $958.70  $958.70  $960.10  $961.10  $963.50 
2010 Fund  Expenses paid per $1,000*  $1.72  $5.38  $5.38  $4.16  $2.94  $0.49 
  Ending value (after expenses)  $972.10  $968.40  $968.40  $969.70  $970.90  $973.20 
Maturity Fund  Expenses paid per $1,000*  $1.72  $5.40  $5.40  $4.17  $2.95  $0.49 
  Ending value (after expenses)  $977.70  $973.80  $974.00  $975.10  $976.30  $979.00 

* Expenses for each share class are calculated using the fund’s annualized expense ratio for each class, which represents the ongoing expenses as a percentage of net assets for the six months ended 7/31/08. The expense ratio may differ for each share class (see the next table in this section). Expenses are calculated by multiplying the expense ratio by the average account value for the period; then multiplying the result by the number of days in the period; and then dividing that result by the number of days in the year.

Compare expenses using the SEC’s method

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the following table shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total costs) of investing in the fund with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

    Class A  Class B  Class C  Class M  Class R  Class Y 
2050 Fund  Expenses paid per $1,000*  $1.76  $5.52  $5.52  $4.27  $3.02  $0.50 
  Ending value (after expenses)  $1,023.12  $1,019.39  $1,019.39  $1,020.64  $1,021.88  $1,024.37 
  Annualized expense ratio†  0.35%  1.10%  1.10%  0.85%  0.60%  0.10% 
  Lipper peer group             
  Average expense ratio‡  0.40%  1.15%  1.15%  0.90%  0.65%  0.15% 
2045 Fund  Expenses paid per $1,000*  $1.76  $5.52  $5.52  $4.27  $3.02  $0.50 
  Ending value (after expenses)  $1,023.12  $1,019.39  $1,019.39  $1,020.64  $1,021.88  $1,024.37 
  Annualized expense ratio†  0.35%  1.10%  1.10%  0.85%  0.60%  0.10% 
  Lipper peer group             
  Average expense ratio‡  0.47%  1.22%  1.22%  0.97%  0.72%  0.22% 
2040 Fund  Expenses paid per $1,000*  $1.76  $5.52  $5.52  $4.27  $3.02  $0.50 
  Ending value (after expenses)  $1,023.12  $1,019.39  $1,019.39  $1,020.64  $1,021.88  $1,024.37 
  Annualized expense ratio†  0.35%  1.10%  1.10%  0.85%  0.60%  0.10% 
  Lipper peer group             
  Average expense ratio‡  0.45%  1.20%  1.20%  0.95%  0.70%  0.20% 
2035 Fund  Expenses paid per $1,000*  $1.76  $5.52  $5.52  $4.27  $3.02  $0.50 
  Ending value (after expenses)  $1,023.12  $1,019.39  $1,019.39  $1,020.64  $1,021.88  $1,024.37 
  Annualized expense ratio†  0.35%  1.10%  1.10%  0.85%  0.60%  0.10% 
  Lipper peer group             
  Average expense ratio‡  0.49%  1.24%  1.24%  0.99%  0.74%  0.24% 

20

2030 Fund  Expenses paid per $1,000*  $1.76  $5.52  $5.52  $4.27  $3.02  $0.50 
  Ending value (after expenses)  $1,023.12  $1,019.39  $1,019.39  $1,020.64  $1,021.88  $1,024.37 
  Annualized expense ratio†  0.35%  1.10%  1.10%  0.85%  0.60%  0.10% 
  Lipper peer group             
  Average expense ratio‡  0.48%  1.23%  1.23%  0.98%  0.73%  0.23% 
2025 Fund  Expenses paid per $1,000*  $1.76  $5.52  $5.52  $4.27  $3.02  $0.50 
  Ending value (after expenses)  $1,023.12  $1,019.39  $1,019.39  $1,020.64  $1,021.88  $1,024.37 
  Annualized expense ratio†  0.35%  1.10%  1.10%  0.85%  0.60%  0.10% 
  Lipper peer group             
  Average expense ratio‡  0.47%  1.22%  1.22%  0.97%  0.72%  0.22% 
2020 Fund  Expenses paid per $1,000*  $1.76  $5.52  $5.52  $4.27  $3.02  $0.50 
  Ending value (after expenses)  $1,023.12  $1,019.39  $1,019.39  $1,020.64  $1,021.88  $1,024.37 
  Annualized expense ratio†  0.35%  1.10%  1.10%  0.85%  0.60%  0.10% 
  Lipper peer group             
  Average expense ratio‡  0.48%  1.23%  1.23%  0.98%  0.73%  0.23% 
2015 Fund  Expenses paid per $1,000*  $1.76  $5.52  $5.52  $4.27  $3.02  $0.50 
  Ending value (after expenses)  $1,023.12  $1,019.39  $1,019.39  $1,020.64  $1,021.88  $1,024.37 
  Annualized expense ratio†  0.35%  1.10%  1.10%  0.85%  0.60%  0.10% 
  Lipper peer group             
  Average expense ratio‡  0.50%  1.25%  1.25%  1.00%  0.75%  0.25% 
2010 Fund  Expenses paid per $1,000*  $1.76  $5.52  $5.52  $4.27  $3.02  $0.50 
  Ending value (after expenses)  $1,023.12  $1,019.39  $1,019.39  $1,020.64  $1,021.88  $1,024.37 
  Annualized expense ratio†  0.35%  1.10%  1.10%  0.85%  0.60%  0.10% 
  Lipper peer group             
  Average expense ratio‡  0.49%  1.24%  1.24%  0.99%  0.74%  0.24% 
Maturity Fund  Expenses paid per $1,000*  $1.76  $5.52  $5.52  $4.27  $3.02  $0.50 
  Ending value (after expenses)  $1,023.12  $1,019.39  $1,019.39  $1,020.64  $1,021.88  $1,024.37 
  Annualized expense ratio†  0.35%  1.10%  1.10%  0.85%  0.60%  0.10% 
  Lipper peer group             
  Average expense ratio‡  0.51%  1.26%  1.26%  1.01%  0.76%  0.26% 

* Expenses for each share class are calculated using the fund’s annualized expense ratio for each class, which represents the ongoing expenses as a percentage of net assets for the six months ended 7/31/08. The expense ratio may differ for each share class. Expenses are calculated by multiplying the expense ratio by the average account value for the period; then multiplying the result by the number of days in the period; and then dividing that result by the number of days in the year.

† For each fund’s most recent fiscal half year; may differ from expense ratios based on one-year data in the financial highlights.

‡ The Lipper category for each fund is specified in the following table. The peer group may include funds that are significantly larger than the fund, which may limit the comparability of the fund’s expenses to the simple average, which is typically higher than the asset-weighted average.

Putnam RetirementReady Fund  Lipper category 
RetirementReady 2050 Fund  Mixed-Asset Target 2050+ 
RetirementReady 2045 Fund  Mixed-Asset Target 2045 
RetirementReady 2040 Fund  Mixed-Asset Target 2040 
RetirementReady 2035 Fund  Mixed-Asset Target 2035 
RetirementReady 2030 Fund  Mixed-Asset Target 2030 
RetirementReady 2025 Fund  Mixed-Asset Target 2025 
RetirementReady 2020 Fund  Mixed-Asset Target 2020 
RetirementReady 2015 Fund  Mixed-Asset Target 2015 
RetirementReady 2010 Fund  Mixed-Asset Target 2010 
RetirementReady Maturity Fund  Mixed-Asset Target Allocation Conservative 

21

Your fund’s management

Your fund is managed by the members of the Global Asset Allocation Team. Jeffrey Knight is the Portfolio Leader, and Robert Kea and Robert Schoen are Portfolio Members. The Portfolio Leader and Portfolio Members coordinate the team’s management of the fund.

For a complete listing of the members of the Global Asset Allocation Team, including those who are not Portfolio Leaders or Portfolio Members of your fund, please visit the Individual Investors section of www.putnam.com.

Trustee and Putnam employee fund ownership

As of July 31, 2008, 10 of the 12 Trustees of the Putnam funds owned fund shares. The table below shows the approximate value of investments in the fund and all Putnam funds as of that date by the Trustees and Putnam employees. These amounts include investments by the Trustees’ and employees’ immediate family members and investments through retirement and deferred compensation plans.

  Assets in  Total assets in 
  the fund  all Putnam funds 
Trustees  $205,000 $76,000,000
Putnam employees  $11,177,000 $568,000,000

Other Putnam funds managed by the Portfolio Leader
and Portfolio Members

Jeffrey Knight is also a Portfolio Leader of the Putnam Asset Allocation Funds (Growth, Balanced, and Conservative Portfolios), Putnam Income Strategies Fund, Putnam Voyager Fund, and Putnam Growth Opportunities Fund, and a Portfolio Member of The George Putnam Fund of Boston and the Putnam Discovery Growth Fund.

Robert Kea is also a Portfolio Member of Putnam Asset Allocation Funds (Growth, Balanced, and Conservative Portfolios) and Putnam Income Strategies Fund.

Robert Schoen is also a Portfolio Leader of Putnam Voyager Fund and Putnam Growth Opportunities Fund, and a Portfolio Member of the Putnam Asset Allocation Funds (Growth, Balanced, and Conservative Portfolios), Putnam Income Strategies Fund, and Putnam Discovery Growth Fund.

Jeffrey Knight, Robert Kea, and Robert Schoen may also manage other accounts and variable trust funds advised by Putnam Management or an affiliate.

Investment team fund ownership

Your fund’s Portfolio Leader and Portfolio Members, as well as the members of Putnam’s Executive Board, each invest in one or more of the six mutual funds that underlie Putnam RetirementReady Funds.

Investment team fund ownership

The following table shows how much the fund’s current Portfolio Leader and Portfolio Members have invested in the fund and in all Putnam mutual funds (in dollar ranges). Information shown is as of July 31, 2008, and July 31, 2007.


22

Terms and definitions

Important terms

Total return shows how the value of the fund’s shares changed over time, assuming you held the shares through the entire period and reinvested all distributions in the fund.

Net asset value (NAV) is the price, or value, of one share of a mutual fund, without a sales charge. NAVs fluctuate with market conditions. NAV is calculated by dividing the net assets of each class of shares by the number of outstanding shares in the class.

Public offering price (POP) is the price of a mutual fund share plus the maximum sales charge levied at the time of purchase. POP performance figures shown here assume the 5.75% maximum sales charge for class A shares and 3.50% for class M shares.

Contingent deferred sales charge (CDSC) is generally a charge applied at the time of the redemption of class B or C shares and assumes redemption at the end of the period. Your fund’s class B CDSC declines from a 5% maximum during the first year to 1% during the sixth year. After the sixth year, the CDSC no longer applies. The CDSC for class C shares is 1% for one year after purchase.

Share classes

Class A shares are generally subject to an initial sales charge and no CDSC (except on certain redemptions of shares bought without an initial sales charge).

Class B shares are not subject to an initial sales charge. They may be subject to a CDSC.

Class C shares are not subject to an initial sales charge and are subject to a CDSC only if the shares are redeemed during the first year.

Class M shares have a lower initial sales charge and a higher 12b-1 fee than class A shares and no CDSC (except on certain redemptions of shares bought without an initial sales charge).

Class R shares are not subject to an initial sales charge or CDSC and are available only to certain defined contribution plans.

Class Y shares are not subject to an initial sales charge or CDSC, and carry no 12b-1 fee. They are generally only available to corporate and institutional clients and clients in other approved programs.

Comparative indexes

Lehman Aggregate Bond Index is an unmanaged index of U.S. investment-grade fixed-income securities.

Merrill Lynch 91-Day Treasury Bill Index is an unmanaged index that seeks to measure the performance of U.S. Treasury bills available in the marketplace.

Morgan Stanley Capital International (MSCI) EAFE Index is an unmanaged index of equity securities from developed countries in Western Europe, the Far East, and Australasia.

S&P 500 Index is an unmanaged index of common stock performance.

Indexes assume reinvestment of all distributions and do not account for fees. Securities and performance of a fund and an index will differ. You cannot invest directly in an index.

23

Trustee approval of management contract

General conclusions

The Board of Trustees of the Putnam funds oversees the management of each fund and, as required by law, determines annually whether to approve the continuance of your fund’s management contract with Putnam Investment Management (“Putnam Management”). In this regard, the Board of Trustees, with the assistance of its Contract Committee consisting solely of Trustees who are not “interested persons” (as such term is defined in the Investment Company Act of 1940, as amended) of the Putnam funds (the “Independent Trustees”), requests and evaluates all information it deems reasonably necessary under the circumstances. Over the course of several months ending in June 2008, the Contract Committee met several times to consider the information provided by Putnam Management and other information developed with the assistance of the Board’s independent counsel and independent staff. The Contract Committee reviewed and discussed key aspects of this information with all of the Independent Trustees. The Contract Committee recommended, and the Independent Trustees approved, the continuance of your fund’s management contract, effective July 1, 2008.

The Independent Trustees’ approval was based on the following conclusions:

• That the fee schedule in effect for your fund represented reasonable compensation in light of the nature and quality of the services being provided to the fund, the fees paid by competitive funds and the costs incurred by Putnam Management in providing such services, and

• That this fee schedule represented an appropriate sharing between fund shareholders and Putnam Management of such economies of scale as may exist in the management of the fund at current asset levels.

These conclusions were based on a comprehensive consideration of all information provided to the Trustees, were subject to the continued application of certain expense reductions and waivers and other considerations noted below, and were not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations and how the Trustees considered these factors are described below, although individual Trustees may have evaluated the information presented differently, giving different weights to various factors. It is also important to recognize that the fee arrangements for your fund and the other Putnam funds are the result of many years of review and discussion between the Independent Trustees and Putnam Management, that certain aspects of such arrangements may receive greater scrutiny in some years than others, and that the Trustees’ conclusions may be based, in part, on their consideration of these same arrangements in prior years.

Management fee schedules and categories; total expenses

The Trustees reviewed the management fee schedules in effect for all Putnam funds, including fee levels and breakpoints, and the assignment of funds to particular fee categories. In reviewing fees and expenses, the Trustees generally focused their attention on material changes in circumstances — for example, changes in a fund’s size or investment style, changes in Putnam Management’s operating costs or responsibilities, or changes in competitive practices in the mutual fund industry — that suggest that consideration of fee changes might be warranted. The Trustees concluded that the circumstances did not warrant changes to the management fee structure of your fund, which had been carefully developed over the years, re-examined on many occasions and adjusted where appropriate. In this regard, the Trustees also noted that shareholders of your fund voted in 2007 to approve new management contracts containing an identical fee structure. The Trustees focused on two areas of particular interest, as discussed further below:

•Competitiveness. The Trustees reviewed comparative fee and expense information for competitive funds, which indicated that, in a custom peer group of competitive funds selected by Lipper Inc., each fund ranked in the following percentiles in management fees and total expenses (less any applicable 12b-1 fees) as of December 31, 2007 (the first percentile being the least expensive funds and the 100th percentile being the most expensive funds).

Actual Management  Total Expenses 
  Fee (percentile)  (percentile) 
Putnam RetirementReady Maturity Fund  95th  15th 
Putnam RetirementReady 2010 Fund  99th  25th 
Putnam RetirementReady 2015 Fund  88th  50th 
Putnam RetirementReady 2020 Fund  89th  56th 
Putnam RetirementReady 2025 Fund  89th  56th 
Putnam RetirementReady 2030 Fund  89th  56th 
Putnam RetirementReady 2035 Fund  99th  56th 
Putnam RetirementReady 2040 Fund  99th  44th 
Putnam RetirementReady 2045 Fund  99th  56th 
Putnam RetirementReady 2050 Fund  99th  50th 

(The comparative fee and expense information for each Putnam RetirementReady Fund includes the fees and expenses of the underlying Putnam funds in which a Putnam RetirementReady Fund invests, as well as the fees and expenses of the underlying funds in which other funds in the Lipper peer group invest. In addition, because each Putnam RetirementReady Fund’s custom peer group is smaller than the fund’s broad Lipper Inc. peer group, this expense information may differ from the Lipper peer expense information found elsewhere in this report.) The Trustees noted that expense ratios for a number of Putnam funds, which show the percentage of fund assets used to pay for management and administrative services, distribution (12b-1) fees and other expenses, had been increasing

24

recently as a result of declining net assets and the natural operation of fee breakpoints.

The Trustees noted that the expense ratio increases described above were currently being controlled by expense limitations initially implemented in January 2004. The Trustees have received a commitment from Putnam Management and its parent company to continue this program through at least June 30, 2009. These expense limitations give effect to a commitment by Putnam Management that the expense ratio of each open-end fund would be no higher than the average expense ratio of the competitive funds included in the fund’s relevant Lipper universe (exclusive of any applicable 12b-1 charges in each case). The Trustees observed that this commitment to limit fund expenses has served shareholders well since its inception.

In order to ensure that the expenses of the Putnam funds continue to meet evolving competitive standards, the Trustees requested, and Putnam Management agreed, to extend for the twelve months beginning July 1, 2008, an additional expense limitation for certain funds at an amount equal to the average expense ratio (exclusive of 12b-1 charges) of a custom peer group of competitive funds selected by Lipper to correspond to the size of the fund. This additional expense limitation will be applied to those open-end funds that had above-average expense ratios (exclusive of 12b-1 charges) based on the custom peer group data for the period ended December 31, 2007. This additional expense limitation will not be applied to the Putnam RetirementReady funds because each had a below-average expense ratio relative to its custom peer group.

In addition, the Trustees devoted particular attention to analyzing the Putnam funds’ fees and expenses relative to those of competitors in fund complexes of comparable size and with a comparable mix of asset categories. The Trustees concluded that this analysis did not reveal any matters requiring further attention at the current time.

•Economies of scale. The Trustees considered that most Putnam funds currently have the benefit of breakpoints in their management fees that provide shareholders with significant economies of scale, which means that the effective management fee rate of the fund (as a percentage of fund assets) declines as the fund grows in size and crosses specified asset thresholds. Conversely, if the fund shrinks in size — as has been the case for many Putnam funds in recent years — these breakpoints result in increasing fee levels. In recent years, the Trustees have examined the operation of the existing breakpoint structure during periods of both growth and decline in asset levels. The Trustees concluded that the fee schedule in effect for your fund represented an appropriate sharing of economies of scale at current asset levels.

In connection with their review of the management fees and total expenses of the Putnam funds, the Trustees also reviewed the costs of the services to be provided and profits to be realized by Putnam Management and its affiliates from the relationship with the funds. This information included trends in revenues, expenses and profitability of Putnam Management and its affiliates relating to the investment management and distribution services provided to the funds. In this regard, the Trustees also reviewed an analysis of Putnam Management’s revenues, expenses and profitability with respect to the funds’ management contracts, allocated on a fund-by-fund basis.

Investment performance

The quality of the investment process provided by Putnam Management represented a major factor in the Trustees’ evaluation of the quality of services provided by Putnam Management under your fund’s management contract. The Trustees were assisted in their review of the Putnam funds’ investment process and performance by the work of the Investment Oversight Coordinating Committee of the Trustees and the Investment Oversight Committees of the Trustees, which had met on a regular monthly basis with the funds’ portfolio teams throughout the year. The Trustees concluded that Putnam Management generally provides a high-quality investment process — as measured by the experience and skills of the individuals assigned to the management of fund portfolios, the resources made available to such personnel, and in general the ability of Putnam Management to attract and retain high-quality personnel — but also recognized that this does not guarantee favorable investment results for every fund in every time period. The Trustees considered the investment performance of each fund over multiple time periods and considered information comparing each fund’s performance with various benchmarks and with the performance of competitive funds.

While the Trustees noted the satisfactory investment performance of certain Putnam funds, they considered the disappointing investment performance of many funds in recent periods, particularly over periods in 2007 and 2008. They discussed with senior management of Putnam Management the factors contributing to such underperformance and actions being taken to improve performance. The Trustees recognized that, in recent years, Putnam Management has taken steps to strengthen its investment personnel and processes to address areas of underperformance, including recent efforts to further centralize Putnam Management’s equity research function. In this regard, the Trustees took into consideration efforts by Putnam Management to improve its ability to assess and mitigate investment risk in individual funds, across asset classes, and across the complex as a whole. The Trustees indicated their intention to continue to monitor performance trends to assess the effectiveness of these efforts and to evaluate whether additional changes to address areas of underperformance are warranted.

In the case of the Putnam RetirementReady Funds, the Trustees considered the Lipper peer group percentile rankings for each fund’s class A share cumulative total return performance results at net asset value for the one-year and three-year periods ended December 31, 2007. This information is shown in the following table. (Because of the passage of time, these performance results may differ from the performance results for more recent periods shown elsewhere in this report.) Where applicable, the table also

25

shows the number of funds in the peer groups for the respective periods; this number is indicated in parentheses following the percentile. Note that the first percentile denotes the best performing funds and the 100th percentile denotes the worst performing funds. Past performance is no guarantee of future returns.

  One-year  Three-year 
  period rank  period rank 
  (# of funds  (# of funds 
  in category)  in category) 
Putnam RetirementReady Maturity Fund     
Lipper Mixed-Asset Target Allocation     
Conservative Funds  84th (414)  76th (261) 
Putnam RetirementReady 2010 Fund     
Lipper Mixed-Asset Target 2010 Funds  97th (140)  86th (55) 
Putnam RetirementReady 2015 Fund     
Lipper Mixed-Asset Target 2020 Funds  92nd (191)  83rd (72) 
Putnam RetirementReady 2020 Fund     
Lipper Mixed-Asset Target 2020 Funds  94th (191)  61st (72) 
Putnam RetirementReady 2025 Fund     
Lipper Mixed-Asset Target 2030 Funds  92nd (171)  80th (62) 
Putnam RetirementReady 2030 Fund     
Lipper Mixed-Asset Target 2030 Funds  95th (171)  72nd (62) 
Putnam RetirementReady 2035 Fund     
Lipper Mixed-Asset Target 2030+ Funds  89th (237)  83rd (80) 
Putnam RetirementReady 2040 Fund     
Lipper Mixed-Asset Target 2030+ Funds  90th (237)  76th (80) 
Putnam RetirementReady 2045 Fund     
Lipper Mixed-Asset Target 2030+ Funds  91st (237)  72nd (80) 
Putnam RetirementReady 2050 Fund     
Lipper Mixed-Asset Target 2030+ Funds  93rd (237)  — 

See page 27 for more recent Lipper performance ranking information for the funds. Past performance is no guarantee of future results.

As a general matter, the Trustees believe that cooperative efforts between the Trustees and Putnam Management represent the most effective way to address investment performance problems. The Trustees noted that investors in the Putnam funds have, in effect, placed their trust in the Putnam organization, under the oversight of the funds’ Trustees, to make appropriate decisions regarding the management of the funds. Based on the responsiveness of Putnam Management in the recent past to Trustee concerns about investment performance, the Trustees concluded that it is preferable to seek change within Putnam Management to address performance shortcomings. In the Trustees’ view, the alternative of engaging a new investment adviser for an underperforming fund would entail significant disruptions and would not provide any greater assurance of improved investment performance.

Brokerage and soft-dollar allocations; other benefits

The Trustees considered various potential benefits that Putnam Management may receive in connection with the services it provides under the management contract with your fund. These include benefits related to brokerage and soft-dollar allocations, whereby a portion of the commissions paid by a fund for brokerage may be used to acquire research services that may be useful to Putnam Management in managing the assets of the fund and of other clients. The Trustees considered changes made in 2008, at Putnam Management’s request, to the Putnam funds’ brokerage allocation policy, which expanded the permitted categories of brokerage and research services payable with soft dollars and increased the permitted soft dollar allocation to third-party services over what had been authorized in previous years. The Trustees indicated their continued intent to monitor the potential benefits associated with the allocation of fund brokerage and trends in industry practice to ensure that the principle of seeking “best price and execution” remains paramount in the portfolio trading process.

The Trustees’ annual review of your fund’s management contract arrangements also included the review of its distributor’s contract and distribution plan with Putnam Retail Management Limited Partnership and the investor servicing agreement with Putnam Fiduciary Trust Company (“PFTC”), each of which provides benefits to affiliates of Putnam Management. In the case of the investor servicing agreement, the Trustees considered that certain shareholder servicing functions were shifted to a third-party service provider by PFTC in 2007.

Comparison of retail and institutional fee schedules

The information examined by the Trustees as part of their annual contract review has included for many years information regarding fees charged by Putnam Management and its affiliates to institutional clients such as defined benefit pension plans, college endowments, etc. This information included comparisons of such fees with fees charged to the funds, as well as a detailed assessment of the differences in the services provided to these two types of clients. The Trustees observed, in this regard, that the differences in fee rates between institutional clients and mutual funds are by no means uniform when examined by individual asset sectors, suggesting that differences in the pricing of investment management services to these types of clients reflect to a substantial degree historical competitive forces operating in separate market places. The Trustees considered the fact that fee rates across different asset classes are typically higher on average for mutual funds than for institutional clients, as well as the differences between the services that Putnam Management provides to the Putnam funds and those that it provides to institutional clients of the firm, but did not rely on such comparisons to any significant extent in concluding that the management fees paid by your fund are reasonable.

More recent peer group rankings

More recent Lipper percentile rankings are shown for the funds in the following table. Note that this information was not available to the Trustees when they approved the continuance of the funds’ management contract. The table shows the Lipper peer group percentile rankings of each fund’s class A share total return performance at net asset value. These rankings were determined on an annualized basis and are for the one-year period ended on the

26

most recent calendar quarter (June 30, 2008). Where applicable, the table also shows each fund’s rank among the total number of funds in its peer group for the respective periods; this information is indicated in parentheses following the percentile. Note that the first percentile denotes the best performing funds and the 100th percentile denotes the worst performing funds.

  One-year 
  period rank 
Putnam RetirementReady Maturity Fund   
Lipper Mixed-Asset Target Allocation Conservative Funds  71st (303/429) 
Putnam RetirementReady 2010 Fund   
Lipper Mixed-Asset Target 2010 Funds  50th (78/158) 
Putnam RetirementReady 2015 Fund   
Lipper Mixed-Asset Target 2015 Funds  72nd (72/99) 
Putnam RetirementReady 2020 Fund   
Lipper Mixed-Asset Target 2020 Funds  87th (117/134) 
Putnam RetirementReady 2025 Fund   
Lipper Mixed-Asset Target 2025 Funds  81st (63/77) 
Putnam RetirementReady 2030 Fund   
Lipper Mixed-Asset Target 2030 Funds  91st (119/131) 
Putnam RetirementReady 2035 Fund   
Lipper Mixed-Asset Target 2035 Funds  94th (73/77) 
Putnam RetirementReady 2040 Fund   
Lipper Mixed-Asset Target 2040 Funds  96th (111/115) 
Putnam RetirementReady 2045 Fund   
Lipper Mixed-Asset Target 2045 Funds  93rd (61/65) 
Putnam RetirementReady 2050 Fund   
Lipper Mixed-Asset Target 2050+ Funds  93rd (58/62) 

27

Other information for shareholders

Putnam’s policy on confidentiality

In order to conduct business with our shareholders, we must obtain certain personal information such as account holders’ addresses, telephone numbers, Social Security numbers, and the names of their financial representatives. We use this information to assign an account number and to help us maintain accurate records of transactions and account balances. It is our policy to protect the confidentiality of your information, whether or not you currently own shares of our funds, and, in particular, not to sell information about you or your accounts to outside marketing firms. We have safeguards in place designed to prevent unauthorized access to our computer systems and procedures to protect personal information from unauthorized use. Under certain circumstances, we share this information with outside vendors who provide services to us, such as mailing and proxy solicitation. In those cases, the service providers enter into confidentiality agreements with us, and we provide only the information necessary to process transactions and perform other services related to your account. We may also share this information with our Putnam affiliates to service your account or provide you with information about other Putnam products or services. It is also our policy to share account information with your financial representative, if you’ve listed one on your Putnam account. If you would like clarification about our confidentiality policies or have any questions or concerns, please don’t hesitate to contact us at 1-800-225-1581, Monday through Friday, 8:30 a.m. to 8:00 p.m., or Saturdays from 9:00 a.m. to 5:00 p.m. Eastern Time.

Proxy voting

Putnam is committed to managing our mutual funds in the best interests of our shareholders. The Putnam funds’ proxy voting guidelines and procedures, as well as information regarding how your fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2008, are available in the Individual Investors section of www.putnam.com, and on the SEC’s Web site, www.sec.gov. If you have questions about finding forms on the SEC’s Web site, you may call the SEC at 1-800-SEC-0330. You may also obtain the Putnam funds’ proxy voting guidelines and procedures at no charge by calling Putnam’s Shareholder Services at 1-800-225-1581.

Fund portfolio holdings

The fund will file a complete schedule of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Shareholders may obtain the fund’s Forms N-Q on the SEC’s Web site at www.sec.gov. In addition, the fund’s Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. You may call the SEC at 1-800-SEC-0330 for information about the SEC’s Web site or the operation of the Public Reference Room.

28

Financial statements

These sections of the report, as well as the accompanying Notes, preceded by the Report of Independent Registered Public Accounting Firm, constitute the fund’s financial statements.

The fund’s portfolio lists all the fund’s investments and their values as of the last day of the reporting period. Holdings are organized by asset type and industry sector, country, or state to show areas of concentration and diversification.

Statement of assets and liabilities shows how the fund’s net assets and share price are determined. All investment and noninvestment assets are added together. Any unpaid expenses and other liabilities are subtracted from this total. The result is divided by the number of shares to determine the net asset value per share, which is calculated separately for each class of shares. (For funds with preferred shares, the amount subtracted from total assets includes the liquidation preference of preferred shares.)

Statement of operations shows the fund’s net investment gain or loss. This is done by first adding up all the fund’s earnings — from dividends and interest income — and subtracting its operating expenses to determine net investment income (or loss). Then, any net gain or loss the fund realized on the sales of its holdings — as well as any unrealized gains or losses over the period — is added to or subtracted from the net investment result to determine the fund’s net gain or loss for the fiscal year.

Statement of changes in net assets shows how the fund’s net assets were affected by the fund’s net investment gain or loss, by distributions to shareholders, and by changes in the number of the fund’s shares. It lists distributions and their sources (net investment income or realized capital gains) over the current reporting period and the most recent fiscal year-end. The distributions listed here may not match the sources listed in the Statement of operations because the distributions are determined on a tax basis and may be paid in a different period from the one in which they were earned.

Financial highlights provide an overview of the fund’s investment results, per-share distributions, expense ratios, net investment income ratios, and portfolio turnover in one summary table, reflecting the five most recent reporting periods. In a semi-annual report, the highlight table also includes the current reporting period.

29

Report of Independent Registered Public Accounting Firm

To the Trustees and Shareholders of
Putnam RetirementReady® Funds:

In our opinion, the accompanying statements of assets and liabilities, including the funds’ portfolios, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of each series of the Putnam RetirementReady® Funds (the “trust”) at July 31, 2008, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the trust’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of investments owned at July 31, 2008 by correspondence with the transfer agent, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
September 11, 2008

30

The fund’s portfolio 7/31/08

2050 Fund  Shares  Value 
Asset Allocation Funds* (—% )     
Putnam Income Strategies Fund (Class Y)  —  $— 
Total Asset Allocation Funds (cost $—)    $— 
Equity Funds* (95.8%)     
Putnam Capital Opportunities Fund (Class Y)  139,773  $1,271,931 
Putnam Equity Income Fund (Class Y)  60,502  868,806 
Putnam Fund for Growth and Income (Class Y)  66,328  855,628 
Putnam International Equity Fund (Class Y)  44,881  1,084,323 
Putnam International Growth and Income Fund     
(Class Y)  88,690  1,082,909 
Putnam International New Opportunities Fund     
(Class Y)  66,303  1,078,093 
Putnam Investors Fund (Class Y)  137,425  1,683,456 
Putnam Mid Cap Value Fund (Class Y)  35,785  403,652 
Putnam Vista Fund (Class Y)  36,475  400,493 
Putnam Voyager Fund (Class Y)  96,511  1,696,663 
Total Equity Funds (cost $12,202,667)    $10,425,954 
Fixed Income Funds* (5.0%)     
Putnam Diversified Income Trust (Class Y)  —  $— 
Putnam High Yield Advantage Fund (Class Y)  38,282  221,651 
Putnam Income Fund (Class Y)  34,690  222,014 
Putnam Money Market Fund (Class A)  105,149  105,149 
Total Fixed Income Funds (cost $573,838)    $548,814 
Total investments (cost $12,776,505)    $10,974,768 
  
* Percentages indicated are based on net assets of $10,888,722   
  
 
2045 Fund  Shares  Value 
Asset Allocation Funds* (—%)     
Putnam Income Strategies Fund (Class Y)  —  $— 
Total Asset Allocation Funds (cost $—)    $— 
Equity Funds* (93.9%)     
Putnam Capital Opportunities Fund (Class Y)  273,156  $2,485,720 
Putnam Equity Income Fund (Class Y)  120,449  1,729,650 
Putnam Fund for Growth and Income (Class Y)  133,607  1,723,534 
Putnam International Equity Fund (Class Y)  90,935  2,196,997 
Putnam International Growth and Income Fund     
(Class Y)  177,910  2,172,280 
Putnam International New Opportunities Fund     
(Class Y)  132,981  2,162,267 
Putnam Investors Fund (Class Y)  272,834  3,342,215 
Putnam Mid Cap Value Fund (Class Y)  68,117  768,355 
Putnam Vista Fund (Class Y)  69,419  762,219 
Putnam Voyager Fund (Class Y)  191,597  3,368,276 
Total Equity Funds (cost $24,384,002)    $20,711,513 
Fixed Income Funds* (6.7%)     
Putnam Diversified Income Trust (Class Y)  22,132  $196,752 
Putnam High Yield Advantage Fund (Class Y)  77,390  448,090 
Putnam Income Fund (Class Y)  80,636  516,068 
Putnam Money Market Fund (Class A)  322,800  322,800 
Total Fixed Income Funds (cost $1,555,098)    $1,483,710 
Total investments (cost $25,939,100)    $22,195,223 

* Percentages indicated are based on net assets of $22,061,611

2040 Fund  Shares  Value 
Asset Allocation Funds* (—%)     
Putnam Income Strategies Fund (Class Y)  —  $— 
Total Asset Allocation Funds (cost $—)    $— 
Equity Funds* (88.9%)     
Putnam Capital Opportunities Fund (Class Y)  365,790  $3,328,687 
Putnam Equity Income Fund (Class Y)  166,863  2,396,149 
Putnam Fund for Growth and Income (Class Y)  182,705  2,356,897 
Putnam International Equity Fund (Class Y)  119,086  2,877,127 
Putnam International Growth and Income Fund     
(Class Y)  236,878  2,892,285 
Putnam International New Opportunities Fund     
(Class Y)  177,069  2,879,145 
Putnam Investors Fund (Class Y)  380,144  4,656,768 
Putnam Mid Cap Value Fund (Class Y)  94,072  1,061,130 
Putnam Vista Fund (Class Y)  95,872  1,052,673 
Putnam Voyager Fund (Class Y)  266,913  4,692,332 
Total Equity Funds (cost $33,296,289)    $28,193,193 
Fixed Income Funds* (11.2%)     
Putnam Diversified Income Trust (Class Y)  103,502  $920,134 
Putnam High Yield Advantage Fund (Class Y)  127,174  736,339 
Putnam Income Fund (Class Y)  172,334  1,102,940 
Putnam Money Market Fund (Class A)  785,948  785,948 
Total Fixed Income Funds (cost $3,725,979)    $3,545,361 
Total investments (cost $37,022,268)    $31,738,554 
 
* Percentages indicated are based on net assets of $31,712,079   
 
 
2035 Fund  Shares  Value 
Asset Allocation Funds* (—%)     
Putnam Income Strategies Fund (Class Y)  —  $— 
Total Asset Allocation Funds (cost $—)    $— 
Equity Funds* (84.3%)     
Putnam Capital Opportunities Fund (Class Y)  533,062  $4,850,865 
Putnam Equity Income Fund (Class Y)  248,988  3,575,468 
Putnam Fund for Growth and Income (Class Y)  271,406  3,501,132 
Putnam International Equity Fund (Class Y)  167,661  4,050,697 
Putnam International Growth and Income Fund     
(Class Y)  340,843  4,161,695 
Putnam International New Opportunities Fund     
(Class Y)  254,780  4,142,721 
Putnam Investors Fund (Class Y)  567,503  6,951,914 
Putnam Mid Cap Value Fund (Class Y)  139,027  1,568,228 
Putnam Vista Fund (Class Y)  141,687  1,555,726 
Putnam Voyager Fund (Class Y)  398,521  7,005,991 
Total Equity Funds (cost $49,510,269)    $41,364,437 
Fixed Income Funds* (15.8%)     
Putnam Diversified Income Trust (Class Y)  253,438  $2,253,067 
Putnam High Yield Advantage Fund (Class Y)  290,734  1,683,352 
Putnam Income Fund (Class Y)  364,145  2,330,531 
Putnam Money Market Fund (Class A)  1,477,643  1,477,643 
Total Fixed Income Funds (cost $8,184,895)    $7,744,593 
Total investments (cost $57,695,164)    $49,109,030 

* Percentages indicated are based on net assets of $49,080,406

The accompanying notes are an integral part of these financial statements.

31

The fund’s portfolio 7/31/08 cont.

2030 Fund  Shares  Value 
Asset Allocation Funds* (—%)     
Putnam Income Strategies Fund (Class Y)  —  $— 
Total Asset Allocation Funds (cost $—)    $— 
Equity Funds* (79.0%)     
Putnam Capital Opportunities Fund (Class Y)  644,036  $5,860,724 
Putnam Equity Income Fund (Class Y)  320,461  4,601,824 
Putnam Fund for Growth and Income (Class Y)  356,516  4,599,052 
Putnam International Equity Fund (Class Y)  227,392  5,493,797 
Putnam International Growth and Income Fund     
(Class Y)  433,657  5,294,952 
Putnam International New Opportunities Fund     
(Class Y)  324,149  5,270,655 
Putnam Investors Fund (Class Y)  726,092  8,894,625 
Putnam Mid Cap Value Fund (Class Y)  173,822  1,960,714 
Putnam Vista Fund (Class Y)  177,135  1,944,939 
Putnam Voyager Fund (Class Y)  509,880  8,963,699 
Total Equity Funds (cost $63,613,451)    $52,884,981 
Fixed Income Funds* (21.4%)     
Putnam Diversified Income Trust (Class Y)  501,734  $4,460,413 
Putnam High Yield Advantage Fund (Class Y)  523,973  3,033,805 
Putnam Income Fund (Class Y)  663,381  4,245,640 
Putnam Money Market Fund (Class A)  2,577,095  2,577,095 
Total Fixed Income Funds (cost $15,152,157)    $14,316,953 
Total investments (cost $78,765,608)    $67,201,934 
 
* Percentages indicated are based on net assets of $66,916,646   
 
2025 Fund  Shares  Value 
Asset Allocation Funds* (—%)     
Putnam Income Strategies Fund (Class Y)  —  $— 
Total Asset Allocation Funds (cost $—)    $— 
Equity Funds* (72.4%)     
Putnam Capital Opportunities Fund (Class Y)  737,322  $6,709,627 
Putnam Equity Income Fund (Class Y)  377,825  5,425,560 
Putnam Fund for Growth and Income (Class Y)  412,159  5,316,849 
Putnam International Equity Fund (Class Y)  228,509  5,520,766 
Putnam International Growth and Income Fund     
(Class Y)  460,255  5,619,713 
Putnam International New Opportunities Fund     
(Class Y)  344,048  5,594,226 
Putnam Investors Fund (Class Y)  861,935  10,558,701 
Putnam Mid Cap Value Fund (Class Y)  192,351  2,169,722 
Putnam Vista Fund (Class Y)  196,029  2,152,399 
Putnam Voyager Fund (Class Y)  605,315  10,641,438 
Total Equity Funds (cost $71,539,985)    $59,709,001 
Fixed Income Funds* (28.0%)     
Putnam Diversified Income Trust (Class Y)  793,371  $7,053,067 
Putnam High Yield Advantage Fund (Class Y)  715,379  4,142,042 
Putnam Income Fund (Class Y)  1,126,832  7,211,725 
Putnam Money Market Fund (Class A)  4,684,383  4,684,383 
Total Fixed Income Funds (cost $24,390,638)    $23,091,217 
Total investments (cost $95,930,623)    $82,800,218 

* Percentages indicated are based on net assets of $82,480,217

2020 Fund  Shares  Value 
Asset Allocation Funds* (3.5%)     
Putnam Income Strategies Fund (Class Y)  311,502  $3,171,086 
Total Asset Allocation Funds (cost $3,395,804)    $3,171,086 
Equity Funds* (60.9%)     
Putnam Capital Opportunities Fund (Class Y)  774,620  $7,049,045 
Putnam Equity Income Fund (Class Y)  380,995  5,471,085 
Putnam Fund for Growth and Income (Class Y)  411,093  5,303,096 
Putnam International Equity Fund (Class Y)  152,487  3,684,079 
Putnam International Growth and Income Fund     
(Class Y)  335,076  4,091,279 
Putnam International New Opportunities Fund     
(Class Y)  250,454  4,072,387 
Putnam Investors Fund (Class Y)  864,891  10,594,920 
Putnam Mid Cap Value Fund (Class Y)  197,998  2,233,420 
Putnam Vista Fund (Class Y)  201,779  2,215,537 
Putnam Voyager Fund (Class Y)  607,422  10,678,485 
Total Equity Funds (cost $66,001,266)    $55,393,333 
Fixed Income Funds* (35.9%)     
Putnam Diversified Income Trust (Class Y)  1,143,657  $10,167,110 
Putnam High Yield Advantage Fund (Class Y)  794,330  4,599,172 
Putnam Income Fund (Class Y)  1,625,850  10,405,438 
Putnam Money Market Fund (Class A)  7,496,705  7,496,705 
Total Fixed Income Funds (cost $34,455,188)    $32,668,425 
Total investments (cost $103,852,258)    $91,232,844 
    
* Percentages indicated are based on net assets of $90,963,220   
  
 
2015 Fund  Shares  Value 
Asset Allocation Funds* (13.9%)     
Putnam Income Strategies Fund (Class Y)  1,254,494  $12,770,748 
Total Asset Allocation Funds (cost $13,713,196)  $12,770,748 
Equity Funds* (40.7%)     
Putnam Capital Opportunities Fund (Class Y)  686,403  $6,246,264 
Putnam Equity Income Fund (Class Y)  275,762  3,959,945 
Putnam Fund for Growth and Income (Class Y)  322,723  4,163,125 
Putnam International Equity Fund (Class Y)  111,983  2,705,503 
Putnam International Growth and Income Fund     
(Class Y)  109,915  1,342,060 
Putnam International New Opportunities Fund     
(Class Y)  82,157  1,335,874 
Putnam Investors Fund (Class Y)  629,250  7,708,309 
Putnam Mid Cap Value Fund (Class Y)  99,207  1,119,051 
Putnam Vista Fund (Class Y)  101,113  1,110,219 
Putnam Voyager Fund (Class Y)  441,964  7,769,719 
Total Equity Funds (cost $44,928,401)    $37,460,069 
Fixed Income Funds* (45.5%)     
Putnam Diversified Income Trust (Class Y)  1,663,816  $14,791,323 
Putnam High Yield Advantage Fund (Class Y)  795,992  4,608,792 
Putnam Income Fund (Class Y)  1,792,830  11,474,110 
Putnam Money Market Fund (Class A)  11,011,785  11,011,785 
Total Fixed Income Funds (cost $44,217,423)    $41,886,010 
Total investments (cost $102,859,020)    $92,116,827 

* Percentages indicated are based on net assets of $91,994,080

The accompanying notes are an integral part of these financial statements.

32

The fund’s portfolio 7/31/08 cont.

2010 Fund  Shares  Value 
Asset Allocation Funds* (24.1% )     
Putnam Income Strategies Fund (Class Y)  992,519  $10,103,845 
Total Asset Allocation Funds (cost $10,775,017)    $10,103,845 
Equity Funds* (22.8%)     
Putnam Capital Opportunities Fund (Class Y)  238,367  $2,169,143 
Putnam Equity Income Fund (Class Y)  88,954  1,277,382 
Putnam Fund for Growth and Income (Class Y)  61,192  789,373 
Putnam International Equity Fund (Class Y)  35,648  861,262 
Putnam International Growth and Income Fund     
(Class Y)  —  — 
Putnam International New Opportunities Fund     
(Class Y)  —  — 
Putnam Investors Fund (Class Y)  182,056  2,230,191 
Putnam Mid Cap Value Fund (Class Y)  —  — 
Putnam Vista Fund (Class Y)  —  — 
Putnam Voyager Fund (Class Y)  127,831  2,247,263 
Total Equity Funds (cost $11,004,894)    $9,574,614 
Fixed Income Funds* (53.2%)     
Putnam Diversified Income Trust (Class Y)  969,913  $8,622,530 
Putnam High Yield Advantage Fund (Class Y)  358,976  2,078,473 
Putnam Income Fund (Class Y)  687,127  4,397,612 
Putnam Money Market Fund (Class A)  7,224,817  7,224,817 
Total Fixed Income Funds (cost $23,456,296)    $22,323,432 
Total investments (cost $45,236,207)    $42,001,891 

* Percentages indicated are based on net assets of $41,953,267

Maturity Fund  Shares  Value 
Asset Allocation Funds* (35.8%)     
Putnam Income Strategies Fund (Class Y)  758,037  $7,716,816 
Total Asset Allocation Funds (cost $8,238,617)    $7,716,816 
Equity Funds* (17.1%)     
Putnam Capital Opportunities Fund (Class Y)  75,927  $690,939 
Putnam Equity Income Fund (Class Y)  106,049  1,522,866 
Putnam Fund for Growth and Income (Class Y)  —  — 
Putnam International Equity Fund (Class Y)  —  — 
Putnam International Growth and Income Fund     
(Class Y)  —  — 
Putnam International New Opportunities Fund     
(Class Y)  —  — 
Putnam Investors Fund (Class Y)  60,339  739,155 
Putnam Mid Cap Value Fund (Class Y)  —  — 
Putnam Vista Fund (Class Y)  —  — 
Putnam Voyager Fund (Class Y)  42,391  745,239 
Total Equity Funds (cost $4,220,141)    $3,698,199 
Fixed Income Funds* (48.1%)     
Putnam Diversified Income Trust (Class Y)  433,082  $3,850,095 
Putnam High Yield Advantage Fund (Class Y)  187,365  1,084,844 
Putnam Income Fund (Class Y)  163,300  1,045,122 
Putnam Money Market Fund (Class A)  4,389,678  4,389,678 
Total Fixed Income Funds (cost $10,842,663)    $10,369,739 
Total investments (cost $23,301,421)    $21,784,754 

* Percentages indicated are based on net assets of $21,580,513

The accompanying notes are an integral part of these financial statements.

33

Statement of assets and liabilities 7/31/08

ASSETS  2050 Fund  2045 Fund  2040 Fund  2035 Fund  2030 Fund 
Investments in affiliated underlying Putnam Funds, at value (Notes 1 and 5)  $10,974,768  $22,195,223  $31,738,554  $49,109,030  $67,201,934 
Interest receivable  6  20  47  89  155 
Receivable for shares of the fund sold  41,770  99,732  110,429  144,991  298,552 
Receivable for securities sold  504  139,656  2,066  6,582  109,531 
Receivable from Manager (Note 2)  1,460  661  325  269  — 
Total assets  11,018,508  22,435,292  31,851,421  49,260,961  67,610,172 
 
  
LIABILITIES  2050 Fund  2045 Fund  2040 Fund  2035 Fund  2030 Fund 
Payable for shares of the fund repurchased  $106,213  $336,373  $84,731  $106,129  $466,768 
Payable for securities purchased  13,553  21,706  33,101  41,711  183,126 
Payable for compensation of Manager (Note 2)  —  —  —  —  871 
Payable for distribution fees (Note 2)  1,734  3,360  4,842  7,045  9,611 
Payable for shareholder expense  3,703  3,251  4,170  5,967  6,707 
Payable for audit expense  4,203  8,656  12,073  19,086  25,722 
Other accrued expenses  380  335  425  616  721 
Total liabilities  129,786  373,681  139,342  180,554  693,526 
Net assets  $10,888,722  $22,061,611  $31,712,079  $49,080,407  $66,916,646 
 
 
REPRESENTED BY  2050 Fund  2045 Fund  2040 Fund  2035 Fund  2030 Fund 
Paid-in-capital (unlimited shares authorized) (Notes 1 and 4)  $13,758,556  $27,734,058  $39,526,112  $60,815,881  $81,915,034 
Undistributed net investment income (Note 1)  130,350  14,804  70,293  185,759  437,992 
Accumulated net realized loss on investments (Note 1)  (1,198,447)  (1,943,374)  (2,600,612)  (3,335,099)  (3,872,706) 
Net unrealized depreciation of investments  (1,801,737)  (3,743,877)  (5,283,714)  (8,586,134)  (11,563,674) 
Total — Representing net assets applicable to capital outstanding  $10,888,722  $22,061,611  $31,712,079  $49,080,407  $66,916,646 
 
 
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE  2050 Fund  2045 Fund  2040 Fund  2035 Fund  2030 Fund 
Computation of net asset value, offering price and redemption price — Class A           
Net Assets  $7,131,818  $14,331,607  $20,918,503  $29,944,847  $38,938,007 
Number of shares outstanding  150,052  279,071  397,968  586,015  769,631 
Net asset value and redemption price  $47.53  $51.35  $52.56  $51.10  $50.59 
Offering price per class A share (100/94.25 of Class A net asset value)*  $50.43  $54.48  $55.77  $54.22  $53.68 
Computation of net asset value and offering price — Class B           
Net Assets  $118,920  $158,488  $337,671  $485,745  $686,810 
Number of shares outstanding  2,524  3,248  6,743  10,067  14,141 
Net asset value and offering price**  $47.12  $48.79***  $50.07***  $48.25  $48.57 
Computation of net asset value and offering price — Class C           
Net Assets  $34,256  $20,174  $30,290  $108,195  $118,308 
Number of shares outstanding  727  410  606  2,238  2,425 
Net asset value and offering price**  $47.14***  $49.21***  $50.01***  $48.34  $48.78*** 
Computation of net asset value, offering price and redemption price — Class M           
Net Assets  $36,491  $6,833  $9,033  $52,685  $691,051 
Number of shares outstanding  772  134  179  1,080  14,204 
Net asset value and redemption price  $47.27  $50.83***  $50.50***  $48.81***  $48.65 
Offering price per class M share (100/96.50 of Class M net asset value)*  $48.98  $52.67  $52.33  $50.58  $50.41 
Computation of net asset value, offering price and redemption price — Class R           
Net Assets  $150,467  $363,541  $499,392  $499,739  $703,791 
Number of shares outstanding  3,183  6,941  9,297  10,046  14,472 
Net asset value, offering price and redemption value  $47.27  $52.38  $53.72  $49.75  $48.63 
Computation of net asset value, offering price and redemption price — Class Y           
Net Assets  $3,416,770  $7,180,968  $9,917,190  $17,989,195  $25,778,679 
Number of shares outstanding  71,601  123,705  168,189  312,941  458,005 
Net asset value, offering price and redemption value  $47.72  $58.05  $58.96  $57.48  $56.28 
Cost of investments (Note 1)  $12,776,505  $25,939,100  $37,022,268  $57,695,164  $78,765,608 

* On retail sales of less than $50,000. On sales of $50,000 or more the offering price is reduced.

** Redemption price per share is equal to the net asset value less any applicable contingent deferred sales charge.

*** Net asset value per unit may not recalculate due to rounding of fractional shares.

The accompanying notes are an integral part of these financial statements.

34

Statement of assets and liabilities 7/31/08 cont.

ASSETS  2025 Fund  2020 Fund  2015 Fund  2010 Fund  Maturity Fund 
Investments in affiliated underlying Putnam Funds, at value (Notes 1 and 5)  $82,800,218  $91,232,844  $92,116,827  $42,001,891  $21,784,754 
Interest receivable  282  481  665  437  265 
Receivable for shares of the fund sold  159,431  159,427  112,757  44,418  32,704 
Receivable for securities sold  27,983  14,409  55,050  84,261  76,623 
Total assets  82,987,914  91,407,161  92,285,299  42,131,007  21,894,346 
  
 
LIABILITIES  2025 Fund  2020 Fund  2015 Fund  2010 Fund  Maturity Fund 
Payable for shares of the fund repurchased  $407,605  $320,231  $207,880  $136,946  $215,397 
Payable for securities purchased  45,983  63,574  23,320  12,154  83,754 
Payable for compensation of Manager (Note 2)  1,158  1,150  2,963  469  735 
Payable for distribution fees (Note 2)  11,106  12,712  14,349  5,868  3,244 
Payable for shareholder expense  8,175  7,983  6,200  4,348  1,317 
Payable for audit expense  32,816  37,468  35,868  17,505  9,250 
Other accrued expenses  854  823  639  450  136 
Total liabilities  507,697  443,941  291,219  177,740  313,833 
Net assets  $82,480,217  $90,963,220  $91,994,080  $41,953,267  $21,580,513 
 
REPRESENTED BY  2025 Fund  2020 Fund  2015 Fund  2010 Fund  Maturity Fund 
Paid-in-capital (unlimited shares authorized) (Notes 1 and 4)  $100,133,885  $108,660,912  $104,859,066  $46,315,645  $24,163,960 
Undistributed net investment income (Note 1)  724,507  1,128,824  1,648,745  952,804  4,337 
Accumulated net realized loss on investments (Note 1)  (5,247,770)  (6,207,102)  (3,771,538)  (2,080,866)  (1,071,117) 
Net unrealized depreciation of investments  (13,130,405)  (12,619,414)  (10,742,193)  (3,234,316)  (1,516,667) 
Total — Representing net assets applicable to capital outstanding  $82,480,217  $90,963,220  $91,994,080  $41,953,267  $21,580,513 
  
 
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE  2025 Fund  2020 Fund  2015 Fund  2010 Fund  Maturity Fund 
 
Computation of net asset value, offering price and redemption price — Class A           
Net Assets  $46,217,750  $53,339,676  $62,495,723  $23,724,587  $14,066,522 
Number of shares outstanding  865,737  1,044,490  1,147,491  462,841  277,974 
Net asset value and redemption price  $53.39  $51.07  $54.46  $51.26  $50.60 
Offering price per class A share (100/94.25 of Class A net asset value)*  $56.65  $54.19  $57.78  $54.39  $53.69 
Computation of net asset value and offering price — Class B           
Net Assets  $928,220  $793,864  $464,830  $242,175  $42,677 
Number of shares outstanding  18,399  16,059  8,781  4,849  842 
Net asset value and offering price**  $50.45  $49.43  $52.94  $49.94  $50.68*** 
Computation of net asset value and offering price — Class C           
Net Assets  $150,848  $235,525  $362,674  $307,495  $1,071 
Number of shares outstanding  2,979  4,739  6,826  6,184  21 
Net asset value and offering price**  $50.65***  $49.70  $53.13  $49.73***   $50.78*** 
Computation of net asset value, offering price and redemption price — Class M           
Net Assets  $120,108  $440,149  $498,754  $553,824  $124,925 
Number of shares outstanding  2,359  8,850  9,342  11,071  2,463 
Net asset value and redemption price  $50.92***  $49.73  $53.39  $50.02  $50.72 
Offering price per class M share (100/96.50 of Class M net asset value)*  $52.77  $51.53  $55.33  $51.83  $52.56 
Computation of net asset value, offering price and redemption price — Class R           
Net Assets  $696,965  $611,857  $340,206  $399,145  $154,694 
Number of shares outstanding  13,728  12,294  6,381  7,974  3,057 
Net asset value, offering price and redemption value  $50.77  $49.77  $53.31***  $50.06  $50.61*** 
Computation of net asset value, offering price and redemption price — Class Y           
Net Assets  $34,366,326  $35,542,149  $27,831,893  $16,726,041  $7,190,624 
Number of shares outstanding  640,340  635,858  508,711  309,372  141,729 
Net asset value, offering price and redemption value  $53.67  $55.90  $54.71  $54.06  $50.74 
Cost of investments (Note 1)  $95,930,623  $103,852,258  $102,859,020  $45,236,207  $23,301,421 

* On retail sales of less than $50,000. On sales of $50,000 or more the offering price is reduced.

** Redemption price per share is equal to the net asset value less any applicable contingent deferred sales charge.

*** Net asset value per unit may not recalculate due to rounding of fractional shares.

The accompanying notes are an integral part of these financial statements.

35

Statement of operations For the year ended 7/31/08

INVESTMENT INCOME  2050 Fund  2045 Fund  2040 Fund  2035 Fund  2030 Fund 
Income distributions from underlying Putnam Fund shares  $182,402  $391,926  $628,225  $1,119,839  $1,738,188 
  
  
EXPENSES (NOTE 2)  2050 Fund  2045 Fund  2040 Fund  2035 Fund  2030 Fund 
Compensation of Manager (Note 2)  6,333  13,039  18,186  28,758  38,771 
Distribution fees — Class A (Note 2)  21,061  43,924  61,387  88,889  116,791 
Distribution fees — Class B (Note 2)  1,399  1,682  2,874  5,252  6,801 
Distribution fees — Class C (Note 2)  250  203  254  975  1,050 
Distribution fees — Class M (Note 2)  253  26  124  471  5,678 
Distribution fees — Class R (Note 2)  540  1,494  1,939  1,948  2,468 
Audit fees  4,203  8,656  12,073  19,087  25,722 
Reports to shareholder  7,232  6,374  8,294  12,179  13,671 
Other fees  671  613  793  1,140  1,292 
Fees waived and reimbursed by Manager (Note 2)  (5,828)  (4,322)  (5,335)  (7,437)  (7,001) 
Total expenses  36,114  71,689  100,589  151,262  205,243 
Net investment income  146,288  320,237  527,636  968,577  1,532,945 
Net realized loss on sale of underlying Putnam Fund shares (Notes 1 and 3)  (976,022)  (1,052,882)  (1,019,304)  (757,474)  (1,103,937) 
Capital gain distribution from underlying Putnam Fund shares  823,654  1,659,727  2,248,116  3,315,481  4,238,962 
Net unrealized depreciation of underlying Putnam Fund shares during the year  (1,730,821)  (4,125,874)  (6,227,738)  (10,214,814)  (13,598,452) 
Net loss on investments  (1,883,189)  (3,519,029)  (4,998,926)  (7,656,807)  (10,463,427) 
Net decrease in net assets resulting from operations  $(1,736,901)  $(3,198,792)  $(4,471,290)  $(6,688,230)  $(8,930,482) 

Statement of operations For the year ended 7/31/08 cont.

INVESTMENT INCOME  2025 Fund  2020 Fund  2015 Fund  2010 Fund  Maturity Fund 
Income distributions from underlying Putnam Fund shares  $2,455,219  $3,274,288  $3,877,082  $2,230,151  $1,179,344 
  
 
EXPENSES (NOTE 2)  2025 Fund  2020 Fund  2015 Fund  2010 Fund  Maturity Fund 
Compensation of Manager (Note 2)  49,458  56,478  54,071  26,327  13,954 
Distribution fees — Class A (Note 2)  143,727  173,825  183,086  82,465  47,950 
Distribution fees — Class B (Note 2)  10,583  8,415  7,485  2,543  806 
Distribution fees — Class C (Note 2)  1,842  1,920  2,180  1,208  11 
Distribution fees — Class M (Note 2)  2,044  7,629  1,531  1,023  990 
Distribution fees — Class R (Note 2)  2,606  2,152  1,001  1,525  592 
Audit fees  32,816  37,468  35,868  17,505  9,250 
Reports to shareholder  16,936  16,208  12,457  9,026  2,825 
Other fees  1,554  1,507  1,143  834  273 
Fees waived and reimbursed by Manager (Note 2)  (8,734)  (8,377)  (5,175)  (4,598)  (1,162) 
Total expenses  252,832  297,225  293,647  137,858  75,489 
Net investment income  2,202,387  2,977,063  3,583,435  2,092,293  1,103,855 
Net realized loss on sale of underlying Putnam Fund shares (Notes 1 and 3)  (1,242,464)  (2,534,642)  (1,545,515)  (1,455,435)  (770,892) 
Capital gain distribution from underlying Putnam Fund shares  4,765,801  4,612,956  2,844,702  810,385  315,911 
Net unrealized depreciation of underlying Putnam Fund shares during the year  (15,763,707)  (15,029,143)  (11,600,661)  (3,429,225)  (1,455,306) 
Net loss on investments  (12,240,370)  (12,950,829)  (10,301,474)  (4,074,275)  (1,910,287) 
Net decrease in net assets resulting from operations  $(10,037,983)  $(9,973,766)  $(6,718,039)  $(1,981,982)  $(806,432) 

The accompanying notes are an integral part of these financial statements.

36

Statement of changes in net assets

2050 Fund —  Year ended  Year ended 
INCREASE (DECREASE) IN NET ASSETS  7/31/08  7/31/07 
Operations:     
Net investment income  $146,288  $83,209 
Net realized gain (loss) on underlying     
Putnam Fund shares  (152,368)  881,428 
Net unrealized depreciation on     
underlying Putnam Fund shares  (1,730,821)  (9,729) 
Net increase (decrease) in net assets     
resulting from operations  (1,736,901)  954,908 
Distributions to shareholders (Note 1)     
From ordinary income     
Net investment income     
Class A  (220,506)  (94,430) 
Class B  (2,414)  (1,103) 
Class C  (531)  (9) 
Class M  (712)  (41) 
Class R  (2,364)  (298) 
Class Y  (98,324)  (29,289) 
Net realized short-term gain on investments     
Class A  (668,652)  (80,242) 
Class B  (10,391)  (1,314) 
Class C  (1,795)  (17) 
Class M  (2,452)  (52) 
Class R  (7,302)  (268) 
Class Y  (269,850)  (23,127) 
From net realized long-term gain on investments   
Class A  (285,450)  (17,256) 
Class B  (4,436)  (282) 
Class C  (767)  (4) 
Class M  (1,047)  (11) 
Class R  (3,117)  (57) 
Class Y  (115,200)  (4,974) 
Redemption fees (Note 1)  —  15 
Increase (decrease) from capital share     
transactions (Note 4)  (1,103,515)  10,764,823 
Total increase (decrease) in net assets  (4,535,726)  11,466,972 
 
 
NET ASSETS     
Beginning of year  15,424,448  3,957,476 
End of year  $10,888,722  $15,424,448 
Undistributed net investment income,     
end of year  $130,350  $12,541 

2045 Fund —  Year ended  Year ended 
INCREASE (DECREASE) IN NET ASSETS  7/31/08  7/31/07 
 
Operations:     
Net investment income  $320,237  $354,242 
Net realized gain on underlying     
Putnam Fund shares  606,845  4,282,320 
Net unrealized appreciation (depreciation)     
on underlying Putnam Fund shares  (4,125,874)  12,371 
Net increase (decrease) in net assets     
resulting from operations  (3,198,792)  4,648,933 
Distributions to shareholders (Note 1)     
From ordinary income     
Net investment income     
Class A  (684,640)  (339,437) 
Class B  (5,711)  (1,443) 
Class C  (644)  (113) 
Class M  (16)  (67) 
Class R  (9,867)  (1,222) 
Class Y  (251,520)  (211,147) 
Net realized short-term gain on investments     
Class A  (1,006,485)  (121,393) 
Class B  (9,829)  (710) 
Class C  (1,100)  (68) 
Class M  (64)  (41) 
Class R  (14,573)  (416) 
Class Y  (341,149)  (68,070) 
From net realized long-term gain on investments   
Class A  (3,105,468)  (754,391) 
Class B  (30,326)  (4,414) 
Class C  (3,394)  (421) 
Class M  (197)  (253) 
Class R  (44,965)  (2,586) 
Class Y  (1,052,599)  (423,018) 
Redemption fees (Note 1)  1,630  261 
Increase (decrease) from capital share     
transactions (Note 4)  (3,152,893)  6,674,695 
Total increase (decrease) in net assets  (12,912,602)  9,394,679 
 
 
NET ASSETS     
Beginning of year  34,974,213  25,579,534 
End of year  $22,061,611  $34,974,213 
Undistributed net investment income,     
end of year  $14,804  $48,295 

The accompanying notes are an integral part of these financial statements.

37

Statement of changes in net assets cont.

2040 Fund —  Year ended  Year ended 
INCREASE (DECREASE) IN NET ASSETS  7/31/08  7/31/07 
Operations:     
Net investment income  $527,636  $537,180 
Net realized gain on underlying Putnam     
Fund shares  1,228,812  5,056,491 
Net unrealized appreciation (depreciation)     
on underlying Putnam Fund shares  (6,227,738)  400,403 
Net increase (decrease) in net assets     
resulting from operations  (4,471,290)  5,994,074 
Distributions to shareholders (Note 1)     
From ordinary income     
Net investment income     
Class A  (1,014,929)  (491,393) 
Class B  (7,695)  (2,750) 
Class C  (848)  (43) 
Class M  (532)  (464) 
Class R  (12,057)  (1,253) 
Class Y  (356,992)  (262,203) 
Net realized short-term gain on investments     
Class A  (905,345)  (128,605) 
Class B  (8,532)  (904) 
Class C  (820)  (15) 
Class M  (579)  (146) 
Class R  (10,679)  (340) 
Class Y  (295,594)  (61,966) 
From net realized long-term gain on investments   
Class A  (4,459,568)  (1,134,064) 
Class B  (42,025)  (7,972) 
Class C  (4,039)  (128) 
Class M  (2,852)  (1,284) 
Class R  (52,602)  (2,994) 
Class Y  (1,456,042)  (546,427) 
Redemption fees (Note 1)  14  15 
Increase (decrease) from capital share     
transactions (Note 4)  (2,752,018)  9,641,624 
Total increase (decrease) in net assets  (15,855,024)  12,992,762 
 
NET ASSETS     
Beginning of year  47,567,103  34,574,341 
End of year  $31,712,079  $47,567,103 
Undistributed net investment income,     
end of year  $70,293  $124,991 

2035 Fund —  Year ended  Year ended 
INCREASE (DECREASE) IN NET ASSETS  7/31/08  7/31/07 
Operations:     
Net investment income  $968,577  $977,180 
Net realized gain on underlying Putnam     
Fund shares  2,558,007  7,717,299 
Net unrealized appreciation (depreciation)     
on underlying Putnam Fund shares  (10,214,814)  448,665 
Net increase (decrease) in net assets     
resulting from operations  (6,688,230)  9,143,144 
Distributions to shareholders (Note 1)     
From ordinary income     
Net investment income     
Class A  (1,505,316)  (739,867) 
Class B  (18,234)  (5,989) 
Class C  (3,153)  (935) 
Class M  (2,182)  (725) 
Class R  (14,178)  (1,577) 
Class Y  (731,993)  (520,626) 
Net realized short-term gain on investments     
Class A  (1,030,846)  (1,525) 
Class B  (14,777)  (16) 
Class C  (2,477)  (2) 
Class M  (1,691)  (2) 
Class R  (9,800)  (3) 
Class Y  (467,071)  (971) 
From net realized long-term gain on investments   
Class A  (6,474,172)  (1,981,115) 
Class B  (92,805)  (21,388) 
Class C  (15,555)  (2,568) 
Class M  (10,617)  (2,432) 
Class R  (61,547)  (4,068) 
Class Y  (2,933,416)  (1,261,419) 
Redemption fees (Note 1)  21  192 
Increase (decrease) from capital share     
transactions (Note 4)  (4,423,962)  10,444,079 
Total increase (decrease) in net assets  (24,502,001)  15,042,187 
 
 
NET ASSETS     
Beginning of year  73,582,408  58,540,221 
End of year  $49,080,407  $73,582,408 
Undistributed net investment income,     
end of year  $185,759  $296,868 

The accompanying notes are an integral part of these financial statements.

38

Statement of changes in net assets cont.

2030 Fund —  Year ended  Year ended 
INCREASE (DECREASE) IN NET ASSETS  7/31/08  7/31/07 
Operations:     
Net investment income  $1,532,945  $1,586,690 
Net realized gain on underlying Putnam     
Fund shares  3,135,025  11,686,187 
Net unrealized depreciation on underlying     
Putnam Fund shares  (13,598,452)  (50,806) 
Net increase (decrease) in net assets     
resulting from operations  (8,930,482)  13,222,071 
Distributions to shareholders (Note 1)     
From ordinary income     
Net investment income     
Class A  (2,019,953)  (1,131,581) 
Class B  (20,617)  (8,130) 
Class C  (3,130)  (265) 
Class M  (27,458)  (15,295) 
Class R  (18,590)  (2,298) 
Class Y  (1,088,427)  (836,925) 
Net realized short-term gain on investments     
Class A  (1,024,722)  (1,486) 
Class B  (12,658)  (15) 
Class C  (1,840)  (1) 
Class M  (15,757)  (22) 
Class R  (9,397)  (3) 
Class Y  (514,573)  (1,000) 
From net realized long-term gain on investments   
Class A  (8,843,236)  (2,794,404) 
Class B  (109,237)  (27,354) 
Class C  (15,875)  (1,578) 
Class M  (135,977)  (41,645) 
Class R  (81,097)  (6,061) 
Class Y  (4,440,710)  (1,880,333) 
Redemption fees (Note 1)  1,120  80 
Increase (decrease) from capital share     
transactions (Note 4)  902,641  (2,876,149) 
Total increase (decrease) in net assets  (26,409,975)  3,597,606 
 
  
NET ASSETS     
Beginning of year  93,326,621  89,729,015 
End of year  $66,916,646  $93,326,621 
Undistributed net investment income,     
end of year  $437,992  $547,254 

2025 Fund —  Year ended  Year ended 
DECREASE IN NET ASSETS  7/31/08  7/31/07 
Operations:     
Net investment income  $2,202,387  $2,348,837 
Net realized gain on underlying Putnam     
Fund shares  3,523,337  14,920,405 
Net unrealized depreciation on underlying     
Putnam Fund shares  (15,763,707)  (275,035) 
Net increase (decrease) in net assets     
resulting from operations  (10,037,983)  16,994,207 
Distributions to shareholders (Note 1)     
From ordinary income     
Net investment income     
Class A  (2,485,024)  (1,476,514) 
Class B  (38,146)  (15,423) 
Class C  (6,391)  (2,156) 
Class M  (10,290)  (4,808) 
Class R  (16,477)  (2,938) 
Class Y  (1,556,429)  (1,317,622) 
Net realized short-term gain on investments     
Class A  (1,132,503)  — 
Class B  (20,754)  — 
Class C  (3,420)  — 
Class M  (5,335)  — 
Class R  (7,551)  — 
Class Y  (659,833)  — 
From net realized long-term gain on investments   
Class A  (10,912,418)  (3,869,888) 
Class B  (199,976)  (51,783) 
Class C  (32,951)  (7,656) 
Class M  (51,411)  (15,943) 
Class R  (72,757)  (7,627) 
Class Y  (6,357,933)  (3,130,990) 
Redemption fees (Note 1)  31  611 
Decrease from capital share     
transactions (Note 4)  (6,449,270)  (7,229,769) 
Total decrease in net assets  (40,056,821)  (138,299) 
   
 
NET ASSETS     
Beginning of year  122,537,038  122,675,337 
End of year  $82,480,217  $122,537,038 
Undistributed net investment income,     
end of year  $724,507  $913,377 

The accompanying notes are an integral part of these financial statements.

39

Statement of changes in net assets cont.

2020 Fund —  Year ended  Year ended 
DECREASE IN NET ASSETS  7/31/08  7/31/07 
Operations:     
Net investment income  $2,977,063  $3,308,724 
Net realized gain on underlying Putnam     
Fund shares  2,078,314  14,619,979 
Net unrealized appreciation (depreciation)     
on underlying Putnam Fund shares  (15,029,143)  794,587 
Net increase (decrease) in net assets     
resulting from operations  (9,973,766)  18,723,290 
Distributions to shareholders (Note 1)     
From ordinary income     
Net investment income     
Class A  (3,236,534)  (2,219,236) 
Class B  (27,699)  (12,653) 
Class C  (6,444)  (1,638) 
Class M  (38,440)  (12,118) 
Class R  (12,151)  (2,995) 
Class Y  (1,659,018)  (1,513,866) 
Net realized short-term gain on investments     
Class A  (964,123)  (1,319) 
Class B  (9,808)  (9) 
Class C  (2,233)  (1) 
Class M  (12,599)  (9) 
Class R  (3,673)  (2) 
Class Y  (460,179)  (826) 
From net realized long-term gain on investments   
Class A  (11,248,483)  (4,451,666) 
Class B  (114,425)  (31,883) 
Class C  (26,053)  (4,866) 
Class M  (146,989)  (29,101) 
Class R  (42,853)  (6,407) 
Class Y  (5,368,941)  (2,786,572) 
Redemption fees (Note 1)  175  126 
Decrease from capital share transactions     
(Note 4)  (19,176,770)  (20,049,758) 
Total decrease in net assets  (52,531,006)  (12,401,509) 
 
  
NET ASSETS     
Beginning of year  143,494,226  155,895,735 
End of year  $90,963,220  $143,494,226 
Undistributed net investment income,     
end of year  $1,128,824  $1,508,126 

2015 Fund —  Year ended  Year ended 
DECREASE IN NET ASSETS  7/31/08  7/31/07 
Operations:     
Net investment income  $3,583,435  $3,738,703 
Net realized gain on underlying Putnam     
Fund shares  1,299,187  9,775,654 
Net unrealized appreciation (depreciation)     
on underlying Putnam Fund shares  (11,600,661)  631,826 
Net increase (decrease) in net assets     
resulting from operations  (6,718,039)  14,146,183 
Distributions to shareholders (Note 1)     
From ordinary income     
Net investment income     
Class A  (3,287,903)  (2,262,336) 
Class B  (26,188)  (14,895) 
Class C  (5,865)  (4,122) 
Class M  (6,216)  (3,083) 
Class R  (5,780)  (268) 
Class Y  (1,529,626)  (1,454,848) 
Net realized short-term gain on investments     
Class A  (501,590)  (14,418) 
Class B  (4,863)  (115) 
Class C  (1,124)  (36) 
Class M  (1,058)  (25) 
Class R  (889)  (2) 
Class Y  (218,525)  (8,618) 
From net realized long-term gain on investments   
Class A  (7,458,574)  (3,687,110) 
Class B  (72,311)  (29,361) 
Class C  (16,719)  (9,131) 
Class M  (15,727)  (6,322) 
Class R  (13,217)  (479) 
Class Y  (3,249,431)  (2,203,814) 
Redemption fees (Note 1)  964  27 
Decrease from capital share transactions     
(Note 4)  (15,053,526)  (4,531,037) 
Total decrease in net assets  (38,186,207)  (83,810) 
  
 
NET ASSETS     
Beginning of year  130,180,287  130,264,097 
End of year  $91,994,080  $130,180,287 
Undistributed net investment income,     
end of year  $1,648,745  $1,968,901 

The accompanying notes are an integral part of these financial statements.

40

Statement of changes in net assets cont.

2010 Fund —  Year ended  Year ended 
DECREASE IN NET ASSETS  7/31/08  7/31/07 
Operations:     
Net investment income  $2,092,293  $2,614,121 
Net realized gain (loss) on underlying Putnam     
Fund shares  (645,050)  2,982,218 
Net unrealized appreciation (depreciation)     
on underlying Putnam Fund shares  (3,429,225)  856,306 
Net increase (decrease) in net assets     
resulting from operations  (1,981,982)  6,452,645 
Distributions to shareholders (Note 1)     
From ordinary income     
Net investment income     
Class A  (1,873,550)  (1,619,352) 
Class B  (11,280)  (8,771) 
Class C  (3,657)  (1,130) 
Class M  (4,595)  (4,082) 
Class R  (11,267)  (2,705) 
Class Y  (888,858)  (1,140,275) 
Net realized short-term gain on investments     
Class A  (150,739)  (17,103) 
Class B  (1,065)  (108) 
Class C  (337)  (15) 
Class M  (422)  (50) 
Class R  (936)  (31) 
Class Y  (67,552)  (11,264) 
From net realized long-term gain on investments   
Class A  (1,846,523)  (1,598,362) 
Class B  (13,044)  (10,058) 
Class C  (4,134)  (1,390) 
Class M  (5,170)  (4,626) 
Class R  (11,470)  (2,895) 
Class Y  (827,498)  (1,052,719) 
Redemption fees (Note 1)  238  1,258 
Decrease from capital share transactions     
(Note 4)  (15,345,661)  (22,502,346) 
Total decrease in net assets  (23,049,502)  (21,523,379) 
 
  
NET ASSETS     
Beginning of year  65,002,769  86,526,148 
End of year  $41,953,267  $65,002,769 
Undistributed net investment income,     
end of year  $952,804  $1,397,627 

Maturity Fund —  Year ended  Year ended 
DECREASE IN NET ASSETS  7/31/08  7/31/07 
Operations:     
Net investment income  $1,103,855  $1,457,065 
Net realized gain (loss) on underlying Putnam     
Fund shares  (454,981)  1,247,077 
Net unrealized appreciation (depreciation)     
on underlying Putnam Fund shares  (1,455,306)  541,555 
Net increase (decrease) in net assets     
resulting from operations  (806,432)  3,245,697 
Distributions to shareholders (Note 1)     
From ordinary income     
Net investment income     
Class A  (830,601)  (1,151,724) 
Class B  (2,614)  (5,222) 
Class C  (39)  (579) 
Class M  (5,707)  (2,339) 
Class R  (4,681)  (2,487) 
Class Y  (378,217)  (418,150) 
Net realized short-term gain on investments     
Class A  (113,684)  (14,502) 
Class B  (383)  (61) 
Class C  (6)  (11) 
Class M  (1,183)  (37) 
Class R  (461)  (32) 
Class Y  (41,763)  (4,384) 
From net realized long-term gain on investments   
Class A  (854,436)  (503,150) 
Class B  (2,880)  (2,123) 
Class C  (43)  (370) 
Class M  (8,895)  (1,276) 
Class R  (3,462)  (1,098) 
Class Y  (313,887)  (152,111) 
Redemption fees (Note 1)  816  579 
Decrease from capital share transactions     
(Note 4)  (7,746,813)  (13,515,229) 
Total decrease in net assets  (11,115,371)  (12,528,609) 
  
 
NET ASSETS     
Beginning of year  32,695,884  45,224,493 
End of year  $21,580,513  $32,695,884 
Undistributed net investment income,     
end of year  $4,337  $15,608 

The accompanying notes are an integral part of these financial statements.

41

Financial highlights (For a common share outstanding throughout the period)

INVESTMENT OPERATIONS: LESS DISTRIBUTIONS: RATIOS AND SUPPLEMENTAL DATA:
                          Ratio of net   
  Net asset value,    Net realized and  Total from    From net        Total return  Net assets,  Ratio of expenses  investment income   
  beginning  Net investment  unrealized gain (loss)  investment  From net  realized gain on  Total  Redemption  Net asset value,  at net asset  end of period  to average  (loss) to average  Portfolio 
Period ended  of period  income (loss) a  on investments  operations  investment income  investments  distributions  fees  end of period  value (%) b  (in thousands)  net assets (%) c  net assets (%)  turnover (%) 
Putnam RetirementReady 2050 Fund  
Class A                             
July 31, 2008  $63.60  .63 d  (8.57)  (7.94)  (1.53)  (6.60)  (8.13)  —  $47.53  (14.25)  $7,132  .35 d  1.13 d  151.28 
July 31, 2007  56.44  .52 d  8.65  9.17  (.99)  (1.02)  (2.01)  — e  63.60  16.35  10,042  .34 d  .81 d  67.99 
July 31, 2006  54.36  .48 d,f  3.33  3.81  (.80)  (.93)  (1.73)  — e  56.44  7.07  2,852  .35 d  .86 d,f  96.90 
July 31, 2005**  50.00  (.01) d  4.37  4.36  —  —  —  —  54.36  8.72 *  274  .09 *d  (.02) *d  24.76 * 
Class B                             
July 31, 2008  $63.12  .17 d  (8.50)  (8.33)  (1.07)  (6.60)  (7.67)  —  $47.12  (14.91)  $119  1.10 d  .31 d  151.28 
July 31, 2007  56.18  .07 d  8.59  8.66  (.70)  (1.02)  (1.72)  — e  63.12  15.50  143  1.09 d  .12 d  67.99 
July 31, 2006  54.25  .24 d,f  3.14  3.38  (.52)  (.93)  (1.45)  — e  56.18  6.26  45  1.10 d  .43 d,f  96.90 
July 31, 2005**  50.00  (.08) d  4.33  4.25  —  —  —  —  54.25  8.50 *  31  .28 *d  (.16) *d  24.76 * 
Class C                             
July 31, 2008  $63.43  .15 d  (8.47)  (8.32)  (1.37)  (6.60)  (7.97)  —  $47.14  (14.90)  $34  1.10 d  .29 d  151.28 
July 31, 2007  56.21  (.29) d  8.96  8.67  (.43)  (1.02)  (1.45)  — e  63.43  15.49  16  1.09 d  (.44) d  67.99 
July 31, 2006  54.25  .73 d,f  2.66  3.39  (.50)  (.93)  (1.43)  — e  56.21  6.29  1  1.10 d  1.31 d,f  96.90 
July 31, 2005**  50.00  (.08) d  4.33  4.25  —  —  —  —  54.25  8.50 *  4  .28 *d  (.16) *d  24.76 * 
Class M                             
July 31, 2008  $63.41  .29 d  (8.49)  (8.20)  (1.34)  (6.60)  (7.94)  —  $47.27  (14.69)  $36  .85 d  .54 d  151.28 
July 31, 2007  56.28  (.07) d  8.88  8.81  (.66)  (1.02)  (1.68)  — e  63.41  15.74  29  .84 d  (.11) d  67.99 
July 31, 2006  54.28  .45 d,f  3.07  3.52  (.59)  (.93)  (1.52)  — e  56.28  6.52  3  .85 d  .78 d,f  96.90 
July 31, 2005**  50.00  (.05) d  4.33  4.28  —  —  —  —  54.28  8.56 *  3  .22 *d  (.09) *d  24.76 * 
Class R                             
July 31, 2008  $63.42  .39 d  (8.44)  (8.05)  (1.50)  (6.60)  (8.10)  —  $47.27  (14.47)  $150  .60 d  .73 d  151.28 
July 31, 2007  56.37  .24 d  8.76  9.00  (.93)  (1.02)  (1.95)  — e  63.42  16.08  66  .59 d  .38 d  67.99 
July 31, 2006  54.32  .22 d,f  3.43  3.65  (.67)  (.93)  (1.60)  — e  56.37  6.75  10  .60 d  .40 d,f  96.90 
July 31, 2005**  50.00  (.02) d  4.34  4.32  —  —  —  —  54.32  8.64 *  1  .15 *d  (.04) *d  24.76 * 
Class Y                             
July 31, 2008  $63.84  .71 d  (8.54)  (7.83)  (1.69)  (6.60)  (8.29)  —  $47.72  (14.04)  $3,417  .10 d  1.26 d  151.28 
July 31, 2007  56.57  .58 d  8.77  9.35  (1.06)  (1.02)  (2.08)  — e  63.84  16.65  5,128  .09 d  .90 d  67.99 
July 31, 2006  54.38  .62 d,f  3.34  3.96  (.84)  (.93)  (1.77)  — e  56.57  7.34  1,047  .10 d  1.09 d,f  96.90 
July 31, 2005**  50.00  .03 d  4.35  4.38  —  —  —  —  54.38  8.76 *  134  .03 *d  .05 *d  24.76 * 

See page 62 for Notes to Financial Highlights.

The accompanying notes are an integral part of these financial statements.

42    43

Financial highlights (For a common share outstanding throughout the period) cont.

INVESTMENT OPERATIONS: LESS DISTRIBUTIONS: RATIOS AND SUPPLEMENTAL DATA:
                          Ratio of net   
  Net asset value,    Net realized and  Total from    From net        Total return  Net assets,  Ratio of expenses  investment income   
  beginning  Net investment  unrealized gain (loss)  investment  From net  realized gain on  Total  Redemption  Net asset value,  at net asset  end of period  to average  (loss) to average  Portfolio 
Period ended  of period  income (loss) a  on investments  operations  investment income  investments  distributions  fees  end of period  value (%) b  (in thousands)  net assets (%) c  net assets (%)  turnover (%) 
Putnam RetirementReady 2045 Fund  
Class A                             
July 31, 2008  $79.24  .77 d  (9.11)  (8.34)  (2.79)  (16.76)  (19.55)  — e  $51.35  (13.88)  $14,332  .34 d  1.21 d  133.74 
July 31, 2007  72.28  .74 d  10.94  11.68  (1.32)  (3.40)  (4.72)  — e  79.24  16.36  22,590  .33 d  .93 d  78.06 
July 31, 2006  70.75  .83 d,f  4.42  5.25  (1.20)  (2.52)  (3.72)  — e  72.28  7.50  15,085  .35 d  1.14 d,f  55.76 
July 31, 2005***  63.42  .28 d  7.63  7.91  (.58)  —  (.58)  —  70.75  12.51 *  8,136  .26 *d  .41 *d  42.17 * 
Class B                             
July 31, 2008  $76.34  .27 d  (8.68)  (8.41)  (2.38)  (16.76)  (19.14)  — e  $48.79  (14.52)  $158  1.09 d  .45 d  133.74 
July 31, 2007  69.98  .12 d  10.60  10.72  (.96)  (3.40)  (4.36)  — e  76.34  15.49  158  1.08 d  .16 d  78.06 
July 31, 2006  68.83  (.01) d,f  4.59  4.58  (.91)  (2.52)  (3.43)  — e  69.98  6.71  81  1.10 d  (.01) d,f  55.76 
July 31, 2005***  62.00  (.24) d  7.58  7.34  (.51)  —  (.51)  —  68.83  11.87 *  17  .82 *d  (.37) *d  42.17 * 
Class C                             
July 31, 2008  $76.85  .23 d  (8.71)  (8.48)  (2.40)  (16.76)  (19.16)  — e  $49.21  (14.52)  $20  1.09 d  .40 d  133.74 
July 31, 2007  70.27  .09 d  10.67  10.76  (.78)  (3.40)  (4.18)  — e  76.85  15.48  17  1.08 d  .12 d  78.06 
July 31, 2006  68.84  .32 d,f  4.26  4.58  (.63)  (2.52)  (3.15)  — e  70.27  6.70  9  1.10 d  .46 d,f  55.76 
July 31, 2005***  62.00  (.26) d  7.61  7.35  (.51)  —  (.51)  —  68.84  11.89 *  10  .82 *d  (.39) *d  42.17 * 
Class M                             
July 31, 2008  $77.20  .07 d  (8.66)  (8.59)  (1.04)  (16.76)  (17.80)  .02  $50.83  (14.29)  $7  .84 d  .13 d  133.74 
July 31, 2007  70.38  .42 d  10.57  10.99  (.77)  (3.40)  (4.17)  — e  77.20  15.79  1  .83 d  .54 d  78.06 
July 31, 2006  68.94  .51 d,f  4.26  4.77  (.81)  (2.52)  (3.33)  — e  70.38  6.97  8  .85 d  .72 d,f  55.76 
July 31, 2005***  62.00  (.06) d  7.54  7.48  (.54)  —  (.54)  —  68.94  12.09 *  9  .64 *d  (.09) *d  42.17 * 
Class R                             
July 31, 2008  $80.59  .50 d  (9.18)  (8.68)  (2.78)  (16.76)  (19.54)  .01  $52.38  (14.08)  $364  .59 d  .82 d  133.74 
July 31, 2007  73.67  .42 d  11.28  11.70  (1.38)  (3.40)  (4.78)  — e  80.59  16.09  193  .58 d  .52 d  78.06 
July 31, 2006 1  72.20  (.06) d,f  1.53  1.47  —  —  —  — e  73.67  2.04 *  19  .36 *d  (.09) *d,f  55.76 
December 19, 2005 2  69.06  1.48 d  1.66  3.14  —  —  —  —  72.20  4.55 *  —  .23 *d  2.12 d*  36.08 * 
July 31, 2005***  62.00  .30 d  7.32  7.62  (.56)  —  (.56)  —  69.06  12.33 *  1  .45 *d  .45 *d  42.17 * 
Class Y                             
July 31, 2008  $87.06  .93 d  (10.16)  (9.23)  (3.02)  (16.76)  (19.78)  — e  $58.05  (13.66)  $7,181  .09 d  1.29 d  133.74 
July 31, 2007  78.94  1.08 d  11.90  12.98  (1.46)  (3.40)  (4.86)  — e  87.06  16.66  12,015  .08 d  1.25 d  78.06 
July 31, 2006  76.88  1.09 d,f  4.82  5.91  (1.33)  (2.52)  (3.85)  — e  78.94  7.77  10,378  .10 d  1.37 d,f  36.08 
July 31, 2005***  68.76  .46 d  8.26  8.72  (.60)  —  (.60)  —  76.88  12.72 *  7,926  .07 *d  .63 *d  42.17 * 

See page 62 for Notes to Financial Highlights.

The accompanying notes are an integral part of these financial statements.

44    45

Financial highlights (For a common share outstanding throughout the period) cont.

INVESTMENT OPERATIONS: LESS DISTRIBUTIONS: RATIOS AND SUPPLEMENTAL DATA:
                          Ratio of net   
  Net asset value,    Net realized and  Total from    From net        Total return  Net assets,  Ratio of expenses  investment income   
  beginning  Net investment  unrealized gain (loss)  investment  From net  realized gain on  Total  Redemption  Net asset value,  at net asset  end of period  to average  (loss) to average  Portfolio 
Period ended  of period  income (loss) a  on investments  operations  investment income  investments  distributions  fees  end of period  value (%) b  (in thousands)  net assets (%) c  net assets (%)  turnover (%) 
Putnam RetirementReady 2040 Fund  
Class A                             
July 31, 2008  $78.37  .93 d  (9.18)  (8.25)  (2.79)  (14.77)  (17.56)  — e  $52.56  (13.48)  $20,919  .34 d  1.44 d  133.96 
July 31, 2007  72.11  .87 d  10.34  11.21  (1.39)  (3.56)  (4.95)  — e  78.37  15.77  30,802  .33 d  1.11 d  60.17 
July 31, 2006  70.81  .89 d,f  4.28  5.17  (1.18)  (2.69)  (3.87)  — e  72.11  7.38  21,829  .35 d  1.24 d,f  54.52 
July 31, 2005***  63.50  .32 d  7.51  7.83  (.52)  —  (.52)  — e  70.81  12.37 *  12,230  .26 *d  .48 *d  39.79 * 
Class B                             
July 31, 2008  $75.43  .30 d  (8.64)  (8.34)  (2.25)  (14.77)  (17.02)  — e  $50.07  (14.12)  $338  1.09 d  .50 d  133.96 
July 31, 2007  69.82  .23 d  10.04  10.27  (1.10)  (3.56)  (4.66)  — e  75.43  14.91  278  1.08 d  .30 d  60.17 
July 31, 2006  68.82  .15 d,f  4.34  4.49  (.80)  (2.69)  (3.49)  — e  69.82  6.58  127  1.10 d  .22 d,f  54.52 
July 31, 2005***  62.00  (.25) d  7.52  7.27  (.45)  —  (.45)  — e  68.82  11.75 *  37  .82 *d  (.38) *d  39.79 * 
Class C                             
July 31, 2008  $75.69  .34 d  (8.67)  (8.33)  (2.58)  (14.77)  (17.35)  — e  $50.01  (14.11)  $30  1.09 d  .57 d  133.96 
July 31, 2007  70.00  .03 d  10.28  10.31  (1.06)  (3.56)  (4.62)  — e  75.69  14.92  18  1.08 d  .05 d  60.17 
July 31, 2006  68.83  .32 d,f  4.18  4.50  (.64)  (2.69)  (3.33)  — e  70.00  6.60  2  1.10 d  .46 d,f  54.52 
July 31, 2005***  62.00  .06 d  7.22  7.28  (.45)  —  (.45)  — e  68.83  11.77 *  1  .82 *d  .09 *d  39.79 * 
Class M                             
July 31, 2008  $75.81  .53 d  (8.78)  (8.25)  (2.29)  (14.77)  (17.06)  — e  $50.50  (13.90)  $9  .84 d  .88 d  133.96 
July 31, 2007  70.03  .57 d  9.93  10.50  (1.16)  (3.56)  (4.72)  — e  75.81  15.19  14  .83 d  .76 d  60.17 
July 31, 2006  68.88  .45 d,f  4.22  4.67  (.83)  (2.69)  (3.52)  — e  70.03  6.85  23  .85 d  .64 d,f  54.52 
July 31, 2005***  62.00  .07 d  7.33  7.40  (.52)  —  (.52)  — e  68.88  11.96 *  11  .64 *d  .11 *d  39.79 * 
Class R                             
July 31, 2008  $79.90  .60 d  (9.20)  (8.60)  (2.81)  (14.77)  (17.58)  — e  $53.72  (13.68)  $499  .59 d  .98 d  133.96 
July 31, 2007  73.56  .61 d  10.63  11.24  (1.34)  (3.56)  (4.90)  — e  79.90  15.49  158  .58 d  .75 d  60.17 
July 31, 2006 1  72.11  .04 d,f  1.41  1.45  —  —  —  — e  73.56  2.01 *  46  .36 *d  .05 *d,f  54.52 
December 19, 2005 2  69.04  1.47 d  1.60  3.07  —  —  —  —  72.11  4.45 *  —  .23 *d  2.10 *d  39.73 * 
July 31, 2005***  62.00  .31 d  7.23  7.54  (.50)  —  (.50)  — e  69.04  12.20 *  1  .45 *d  .47 *d  39.79 * 
Class Y                             
July 31, 2008  $85.80  1.09 d  (10.15)  (9.06)  (3.01)  (14.77)  (17.78)  — e  $58.96  (13.26)  $9,917  .09 d  1.50 d  133.96 
July 31, 2007  78.47  1.19 d  11.24  12.43  (1.54)  (3.56)  (5.10)  — e  85.80  16.06  16,298  .08 d  1.39 d  60.17 
July 31, 2006  76.67  1.15 d,f  4.65  5.80  (1.31)  (2.69)  (4.00)  — e  78.47  7.66  12,548  .10 d  1.46 d,f  54.52 
July 31, 2005***  68.61  .50 d  8.10  8.60  (.54)  —  (.54)  — e  76.67  12.58 *  8,983  .07 *d  .68 *d  39.79 * 

See page 62 for Notes to Financial Highlights.

The accompanying notes are an integral part of these financial statements.

46   47 

Financial highlights (For a common share outstanding throughout the period) cont.

INVESTMENT OPERATIONS: LESS DISTRIBUTIONS: RATIOS AND SUPPLEMENTAL DATA:
                          Ratio of net   
  Net asset value,    Net realized and  Total from    From net        Total return  Net assets,  Ratio of expenses  investment income   
  beginning  Net investment  unrealized gain (loss)  investment  From net  realized gain on  Total  Redemption  Net asset value,  at net asset  end of period  to average  (loss) to average  Portfolio 
Period ended  of period  income (loss) a  on investments  operations  investment income  investments  distributions  fees  end of period  value (%) b  (in thousands)  net assets (%) c  net assets (%)  turnover (%) 
Putnam RetirementReady 2035 Fund  
Class A                             
July 31, 2008  $75.48  1.03 d  (8.57)  (7.54)  (2.81)  (14.03)  (16.84)  — e  $51.10  (12.79)  $29,945  .34 d  1.65 d  126.79 
July 31, 2007  70.33  .98 d  9.53  10.51  (1.46)  (3.90)  (5.36)  — e  75.48  15.18  43,169  .33 d  1.30 d  58.16 
July 31, 2006  69.50  1.00 d,f  3.73  4.73  (1.25)  (2.65)  (3.90)  — e  70.33  6.87  31,513  .35 d  1.41 d,f  51.70 
July 31, 2005***  62.61  .38 d  6.96  7.34  (.45)  —  (.45)  —  69.50  11.76 *  21,274  .26 *d  .58 *d  36.45 * 
Class B                             
July 31, 2008  $72.25  .49 d  (8.08)  (7.59)  (2.38)  (14.03)  (16.41)  — e  $48.25  (13.46)  $486  1.09 d  .85 d  126.79 
July 31, 2007  67.68  .40 d  9.16  9.56  (1.09)  (3.90)  (4.99)  — e  72.25  14.32  510  1.08 d  .55 d  58.16 
July 31, 2006  67.35  .38 d,f  3.68  4.06  (1.08)  (2.65)  (3.73)  — e  67.68  6.08  308  1.10 d  .55 d,f  51.70 
July 31, 2005***  61.00  (.08) d  6.87  6.79  (.44)  —  (.44)  —  67.35  11.15 *  67  .82 *d  (.13) *d  36.45 * 
Class C                             
July 31, 2008  $72.42  .45 d  (8.05)  (7.60)  (2.45)  (14.03)  (16.48)  — e  $48.34  (13.45)  $108  1.09 d  .78 d  126.79 
July 31, 2007  68.13  .42 d  9.19  9.61  (1.42)  (3.90)  (5.32)  — e  72.42  14.31  83  1.08 d  .58 d  58.16 
July 31, 2006  67.41  .18 d,f  3.92  4.10  (.73)  (2.65)  (3.38)  — e  68.13  6.13  7  1.10 d  .26 d,f  51.70 
July 31, 2005***  61.00  .10 d  6.69  6.79  (.38)  —  (.38)  —  67.41  11.15 *  1  .82 *d  .15 *d  36.45 * 
Class M                             
July 31, 2008  $72.84  .63 d  (8.14)  (7.51)  (2.49)  (14.03)  (16.52)  — e  $48.81  (13.23)  $53  .84 d  1.08 d  126.79 
July 31, 2007  68.10  .54 d  9.26  9.80  (1.16)  (3.90)  (5.06)  — e  72.84  14.60  63  .83 d  .74 d  58.16 
July 31, 2006  67.47  .56 d,f  3.69  4.25  (.97)  (2.65)  (3.62)  — e  68.10  6.35  37  .85 d  .82 d,f  51.70 
July 31, 2005***  61.00  (.01) d  6.92  6.91  (.44)  —  (.44)  —  67.47  11.35 *  20  .64 *d  (.02) *d  36.45 * 
Class R                             
July 31, 2008  $74.06  .74 d  (8.23)  (7.49)  (2.79)  (14.03)  (16.82)  — e  $49.75  (13.01)  $500  .59 d  1.28 d  126.79 
July 31, 2007  69.31  .63 d  9.53  10.16  (1.51)  (3.90)  (5.41)  — e  74.06  14.89  302  .58 d  .83 d  58.16 
July 31, 2006  67.61  .65 d,f  3.70  4.35  —  (2.65)  (2.65)  — e  69.31  6.48  25  .60 d  .96 d,f  51.70 
July 31, 2005***  61.00  .35 d  6.70  7.05  (.44)  —  (.44)  —  67.61  11.58 *  1  .45 *d  .52 *d  36.45 * 
Class Y                             
July 31, 2008  $82.84  1.24 d  (9.55)  (8.31)  (3.02)  (14.03)  (17.05)  — e  $57.48  (12.61)  $17,989  .09 d  1.77 d  126.79 
July 31, 2007  76.67  1.30 d  10.38  11.68  (1.61)  (3.90)  (5.51)  — e  82.84  15.47  29,456  .08 d  1.57 d  58.16 
July 31, 2006  75.37  1.25 d,f  4.09  5.34  (1.39)  (2.65)  (4.04)  — e  76.67  7.16  26,650  .10 d  1.63 d,f  51.70 
July 31, 2005***  67.76  .56 d  7.52  8.08  (.47)  —  (.47)  —  75.37  11.96 *  20,730  .07 *d  .77 *d  36.45 * 

See page 62 for Notes to Financial Highlights.

The accompanying notes are an integral part of these financial statements.

48    49

Financial highlights (For a common share outstanding throughout the period) cont.

INVESTMENT OPERATIONS: LESS DISTRIBUTIONS: RATIOS AND SUPPLEMENTAL DATA:  
                          Ratio of net   
  Net asset value,    Net realized and  Total from    From net        Total return  Net assets,  Ratio of expenses  investment income   
  beginning  Net investment  unrealized gain (loss)  investment  From net  realized gain on  Total  Redemption  Net asset value,  at net asset  end of period  to average  (loss) to average  Portfolio 
Period ended  of period  income (loss) a  on investments  operations  investment income  investments  distributions  fees  end of period  value (%) b  (in thousands)  net assets (%) c  net assets (%)  turnover (%) 
Putnam RetirementReady 2030 Fund  
Class A                             
July 31, 2008  $74.13  1.18 d  (8.12)  (6.94)  (2.82)  (13.78)  (16.60)  — e  $50.59  (12.03)  $38,938  .34 d  1.93 d  122.17 
July 31, 2007  69.46  1.11 d  8.84  9.95  (1.52)  (3.76)  (5.28)  — e  74.13  14.57  55,378  .32 d  1.50 d  65.00 
July 31, 2006  68.65  1.10 d,f  3.36  4.46  (1.28)  (2.37)  (3.65)  — e  69.46  6.57  46,153  .35 d  1.57 d,f  48.81 
July 31, 2005***  62.16  .44 d  6.47  6.91  (.42)  —  (.42)  —  68.65  11.14 *  32,720  .26 *d  .66 *d  34.59 * 
Class B                             
July 31, 2008  $71.81  .61 d  (7.74)  (7.13)  (2.33)  (13.78)  (16.11)  — e  $48.57  (12.70)  $687  1.09 d  1.07 d  122.17 
July 31, 2007  67.56  .53 d  8.60  9.13  (1.12)  (3.76)  (4.88)  — e  71.81  13.70  609  1.07 d  .74 d  65.00 
July 31, 2006  67.07  .59 d,f  3.25  3.84  (.98)  (2.37)  (3.35)  — e  67.56  5.77  302  1.10 d  .86 d,f  48.81 
July 31, 2005***  61.00  (.13) d  6.55  6.42  (.35)  —  (.35)  —  67.07  10.54 *  225  .82 *d  (.20) *d  34.59 * 
Class C                             
July 31, 2008  $72.17  .59 d  (7.77)  (7.18)  (2.43)  (13.78)  (16.21)  — e  $48.78  (12.72)  $118  1.09 d  1.03 d  122.17 
July 31, 2007  67.43  .33 d  8.80  9.13  (.63)  (3.76)  (4.39)  — e  72.17  13.71  90  1.07 d  .45 d  65.00 
July 31, 2006  67.06  .64 d,f  3.20  3.84  (1.10)  (2.37)  (3.47)  — e  67.43  5.77  43  1.10 d  .95 d,f  48.81 
July 31, 2005***  61.00  (.06) d  6.47  6.41  (.35)  —  (.35)  —  67.06  10.52 *  22  .82 *d  (.10) *d  34.59 * 
Class M                             
July 31, 2008  $71.92  .80 d  (7.80)  (7.00)  (2.49)  (13.78)  (16.27)  — e  $48.65  (12.49)  $691  .84 d  1.38 d  122.17 
July 31, 2007  67.73  .75 d  8.58  9.33  (1.38)  (3.76)  (5.14)  — e  71.92  13.99  776  .82 d  1.04 d  65.00 
July 31, 2006  67.14  .37 d,f  3.64  4.01  (1.05)  (2.37)  (3.42)  — e  67.73  6.03  604  .85 d  .54 d,f  48.81 
July 31, 2005***  61.00  .02 d  6.52  6.54  (.40)  —  (.40)  —  67.14  10.74 *  43  .64 *d  .03 *d  34.59 * 
Class R                             
July 31, 2008  $72.08  .87 d  (7.71)  (6.84)  (2.83)  (13.78)  (16.61)  — e  $48.63  (12.28)  $704  .59 d  1.57 d  122.17 
July 31, 2007  67.75  .80 d  8.72  9.52  (1.43)  (3.76)  (5.19)  — e  72.08  14.27  246  .57 d  1.10 d  65.00 
July 31, 2006  67.27  .87 d,f  3.31  4.18  (1.33)  (2.37)  (3.70)  — e  67.75  6.29  81  .60 d  1.28 d,f  48.81 
July 31, 2005***  61.00  .39 d  6.28  6.67  (.40)  —  (.40)  —  67.27  10.96 *  1  .45 *d  .58 *d  34.59 * 
Class Y                             
July 31, 2008  $80.65  1.41 d  (8.97)  (7.56)  (3.03)  (13.78)  (16.81)  — e  $56.28  (11.84)  $25,779  .09 d  2.09 d  122.17 
July 31, 2007  75.11  1.43 d  9.54  10.97  (1.67)  (3.76)  (5.43)  — e  80.65  14.85  36,228  .07 d  1.78 d  65.00 
July 31, 2006  73.90  1.35 d,f  3.65  5.00  (1.42)  (2.37)  (3.79)  — e  75.11  6.84  42,547  .10 d  1.79 d,f  48.81 
July 31, 2005***  66.78  .57 d  6.99  7.56  (.44)  —  (.44)  —  73.90  11.35 *  37,340  .07 *d  .81 *d  34.59 * 

See page 62 for Notes to Financial Highlights.

The accompanying notes are an integral part of these financial statements.

50    51

Financial highlights (For a common share outstanding throughout the period) cont.

INVESTMENT OPERATIONS: LESS DISTRIBUTIONS: RATIOS AND SUPPLEMENTAL DATA:  
                          Ratio of net   
  Net asset value,    Net realized and  Total from    From net        Total return  Net assets,  Ratio of expenses  investment income   
  beginning  Net investment  unrealized gain (loss)  investment  From net  realized gain on  Total  Redemption  Net asset value,  at net asset  end of period  to average  (loss) to average  Portfolio 
Period ended  of period  income (loss) a  on investments  operations  investment income  investments  distributions  fees  end of period  value (%) b  (in thousands)  net assets (%) c  net assets (%)  turnover (%) 
Putnam RetirementReady 2025 Fund  
Class A                             
July 31, 2008  $77.02  1.40 d  (8.03)  (6.63)  (2.91)  (14.09)  (17.00)  — e  $53.39  (11.07)  $46,218  .34 d  2.18 d  118.18 
July 31, 2007  72.98  1.29 d  8.69  9.98  (1.64)  (4.30)  (5.94)  — e  77.02  13.91  68,996  .32 d  1.67 d  62.81 
July 31, 2006  72.26  1.27 d,f  3.15  4.42  (1.36)  (2.34)  (3.70)  — e  72.98  6.19  61,670  .35 d  1.74 d,f  53.14 
July 31, 2005***  65.75  .52 d  6.39  6.91  (.40)  —  (.40)  — e  72.26  10.53 *  48,529  .26 *d  .75 *d  25.48 * 
Class B                             
July 31, 2008  $73.72  .84 d  (7.58)  (6.74)  (2.44)  (14.09)  (16.53)  — e  $50.45  (11.74)  $928  1.09 d  1.40 d  118.18 
July 31, 2007  70.26  .67 d  8.37  9.04  (1.28)  (4.30)  (5.58)  — e  73.72  13.06  1,144  1.07 d  .90 d  62.81 
July 31, 2006  69.94  .59 d,f  3.16  3.75  (1.09)  (2.34)  (3.43)  — e  70.26  5.40  717  1.10 d  .84 d,f  53.14 
July 31, 2005***  64.00  (.05) d  6.38  6.33  (.39)  —  (.39)  — e  69.94  9.91 *  211  .82 *d  (.08) *d  25.48 * 
Class C                             
July 31, 2008  $73.99  .83 d  (7.60)  (6.77)  (2.48)  (14.09)  (16.57)  — e  $50.65  (11.74)  $151  1.09 d  1.39 d  118.18 
July 31, 2007  70.43  .68 d  8.39  9.07  (1.21)  (4.30)  (5.51)  — e  73.99  13.07  181  1.07 d  .91 d  62.81 
July 31, 2006  70.00  .53 d,f  3.22  3.75  (.98)  (2.34)  (3.32)  — e  70.43  5.41  103  1.10 d  .74 d,f  53.14 
July 31, 2005***  64.00  (.04) d  6.36  6.32  (.32)  —  (.32)  — e  70.00  9.89 *  45  .82 *d  (.05) *d  25.48 * 
Class M                             
July 31, 2008  $74.22  1.01 d  (7.66)  (6.65)  (2.56)  (14.09)  (16.65)  — e  $50.92  (11.53)  $120  .84 d  1.67 d  118.18 
July 31, 2007  70.55  .87 d  8.40  9.27  (1.30)  (4.30)  (5.60)  — e  74.22  13.34  295  .82 d  1.16 d  62.81 
July 31, 2006  70.06  .84 d,f  3.09  3.93  (1.10)  (2.34)  (3.44)  — e  70.55  5.66  264  .85 d  1.19 d,f  53.14 
July 31, 2005***  64.00  .11 d  6.35  6.46  (.40)  —  (.40)  — e  70.06  10.12 *  173  .64 *d  .17 *d  25.48 * 
Class R                             
July 31, 2008  $74.22  1.02 d  (7.49)  (6.47)  (2.89)  (14.09)  (16.98)  — e  $50.77  (11.30)  $697  .59 d  1.77 d  118.18 
July 31, 2007  70.70  .98 d  8.50  9.48  (1.66)  (4.30)  (5.96)  — e  74.22  13.64  284  .57 d  1.31 d  62.81 
July 31, 2006  70.21  .65 d,f  3.47  4.12  (1.29)  (2.34)  (3.63)  — e  70.70  5.93  111  .60 d  .97 d,f  53.14 
July 31, 2005***  64.00  .42 d  6.17  6.59  (.38)  —  (.38)  — e  70.21  10.31 *  1  .45 *d  .64 *d  25.48 * 
Class Y                             
July 31, 2008  $77.39  1.50 d  (8.00)  (6.50)  (3.13)  (14.09)  (17.22)  — e  $53.67  (10.85)  $34,366  .09 d  2.32 d  118.18 
July 31, 2007  73.28  1.52 d  8.70  10.22  (1.81)  (4.30)  (6.11)  — e  77.39  14.20  51,638  .07 d  1.96 d  62.81 
July 31, 2006  72.50  1.42 d,f  3.21  4.63  (1.51)  (2.34)  (3.85)  — e  73.28  6.47  59,810  .10 d  1.93 d,f  53.14 
July 31, 2005***  65.87  .63 d  6.42  7.05  (.42)  —  (.42)  — e  72.50  10.72 *  60,668  .07 *d  .90 *d  25.48 * 

See page 62 for Notes to Financial Highlights.

The accompanying notes are an integral part of these financial statements.

52    53

Financial highlights (For a common share outstanding throughout the period) cont.

INVESTMENT OPERATIONS: LESS DISTRIBUTIONS: RATIOS AND SUPPLEMENTAL DATA:  
                          Ratio of net   
  Net asset value,    Net realized and  Total from    From net        Total return  Net assets,  Ratio of expenses  investment income   
  beginning  Net investment  unrealized gain (loss)  investment  From net  realized gain on  Total  Redemption  Net asset value,  at net asset  end of period  to average  (loss) to average  Portfolio 
Period ended  of period  income (loss) a  on investments  operations  investment income  investments  distributions  fees  end of period  value (%) b  (in thousands)  net assets (%) c  net assets (%)  turnover (%) 
Putnam RetirementReady 2020 Fund  
Class A                             
July 31, 2008  $69.20  1.55 d  (6.89)  (5.34)  (2.68)  (10.11)  (12.79)  — e  $51.07  (9.55)  $53,340  .34 d  2.58 d  115.17 
July 31, 2007  66.20  1.39 d  6.67  8.06  (1.68)  (3.38)  (5.06)  — e  69.20  12.36  88,759  .32 d  1.99 d  56.03 
July 31, 2006  66.06  1.28 d,f  1.90  3.18  (1.33)  (1.71)  (3.04)  — e  66.20  4.86  81,232  .35 d  1.93 d,f  46.91 
July 31, 2005***  60.69  .54 d  5.16  5.70  (.33)  —  (.33)  —  66.06  9.41 *  53,180  .26 *d  .85 *d  30.16 * 
Class B                             
July 31, 2008  $67.43  .99 d  (6.63)  (5.64)  (2.25)  (10.11)  (12.36)  — e  $49.43  (10.26)  $794  1.09 d  1.75 d  115.17 
July 31, 2007  64.77  .84 d  6.54  7.38  (1.34)  (3.38)  (4.72)  — e  67.43  11.53  750  1.07 d  1.23 d  56.03 
July 31, 2006  64.94  .77 d,f  1.87  2.64  (1.10)  (1.71)  (2.81)  — e  64.77  4.08  543  1.10 d  1.18 d,f  46.91 
July 31, 2005***  60.00  .08 d  5.18  5.26  (.32)  —  (.32)  —  64.94  8.79 *  241  .82 *d  .12 *d  30.16 * 
Class C                             
July 31, 2008  $67.77  1.00 d  (6.66)  (5.66)  (2.30)  (10.11)  (12.41)  — e  $49.70  (10.24)  $236  1.09 d  1.77 d  115.17 
July 31, 2007  64.89  .80 d  6.60  7.40  (1.14)  (3.38)  (4.52)  — e  67.77  11.53  178  1.07 d  1.16 d  56.03 
July 31, 2006  64.97  .76 d,f  1.87  2.63  (1.00)  (1.71)  (2.71)  — e  64.89  4.06  109  1.10 d  1.16 d,f  46.91 
July 31, 2005***  60.00  .08 d  5.19  5.27  (.30)  —  (.30)  —  64.97  8.79 *  61  .82 *d  .12 *d  30.16 * 
Class M                             
July 31, 2008  $67.79  1.17 d  (6.69)  (5.52)  (2.43)  (10.11)  (12.54)  — e  $49.73  (10.03)  $440  .84 d  2.03 d  115.17 
July 31, 2007  64.99  .99 d  6.60  7.59  (1.41)  (3.38)  (4.79)  — e  67.79  11.82  1,056  .82 d  1.44 d  56.03 
July 31, 2006  65.05  .97 d,f  1.83  2.80  (1.15)  (1.71)  (2.86)  — e  64.99  4.34  535  .85 d  1.49 d,f  46.91 
July 31, 2005***  60.00  .19 d  5.20  5.39  (.34)  —  (.34)  —  65.05  9.00 *  276  .64 *d  .30 *d  30.16 * 
Class R                             
July 31, 2008  $67.88  1.20 d  (6.56)  (5.36)  (2.64)  (10.11)  (12.75)  — e  $49.77  (9.78)  $612  .59 d  2.17 d  115.17 
July 31, 2007  65.08  1.16 d  6.60  7.76  (1.58)  (3.38)  (4.96)  — e  67.88  12.09  232  .57 d  1.69 d  56.03 
July 31, 2006  65.23  1.18 d,f  1.81  2.99  (1.43)  (1.71)  (3.14)  — e  65.08  4.62  102  .60 d  1.81 d,f  46.91 
July 31, 2005***  60.00  .44 d  5.10  5.54  (.31)  —  (.31)  —  65.23  9.25 *  1  .45 *d  .71 *d  30.16 * 
Class Y                             
July 31, 2008  $74.57  1.80 d  (7.48)  (5.68)  (2.88)  (10.11)  (12.99)  — e  $55.90  (9.33)  $35,542  .09 d  2.76 d  115.17 
July 31, 2007  70.95  1.69 d  7.14  8.83  (1.83)  (3.38)  (5.21)  — e  74.57  12.63  52,519  .07 d  2.26 d  56.03 
July 31, 2006  70.54  1.56 d,f  2.03  3.59  (1.47)  (1.71)  (3.18)  — e  70.95  5.13  73,375  .10 d  2.18 d,f  46.91 
July 31, 2005***  64.69  .68 d  5.52  6.20  (.35)  —  (.35)  —  70.54  9.60 *  66,682  .07 *d  1.01 *d  30.16 * 

See page 62 for Notes to Financial Highlights.

The accompanying notes are an integral part of these financial statements.

54   55 

Financial highlights (For a common share outstanding throughout the period) cont.

INVESTMENT OPERATIONS: LESS DISTRIBUTIONS: RATIOS AND SUPPLEMENTAL DATA:  
                          Ratio of net   
  Net asset value,    Net realized and  Total from    From net        Total return  Net assets,  Ratio of expenses  investment income   
  beginning  Net investment  unrealized gain (loss)  investment  From net  realized gain on  Total  Redemption  Net asset value,  at net asset  end of period  to average  (loss) to average  Portfolio 
Period ended  of period  income (loss) a  on investments  operations  investment income  investments  distributions  fees  end of period  value (%) b  (in thousands)  net assets (%) c  net assets (%)  turnover (%) 
Putnam RetirementReady 2015 Fund  
Class A                             
July 31, 2008  $67.89  1.99 d  (5.89)  (3.90)  (2.79)  (6.74)  (9.53)  — e  $54.46  (6.78)  $62,496  .34 d  3.25 d  108.96 
July 31, 2007  65.72  1.74 d  4.98  6.72  (1.73)  (2.82)  (4.55)  — e  67.89  10.37  83,238  .32 d  2.55 d  68.94 
July 31, 2006  67.28  1.54 d,f  .93  2.47  (1.60)  (2.43)  (4.03)  — e  65.72  3.71  66,033  .35 d  2.31 d,f  62.70 
July 31, 2005***  62.62  .66 d  4.28  4.94  (.28)  —  (.28)  —  67.28  7.90 *  56,457  .26 *d  1.01 *d  26.37 * 
Class B                             
July 31, 2008  $66.22  1.47 d  (5.72)  (4.25)  (2.29)  (6.74)  (9.03)  — e  $52.94  (7.48)  $465  1.09 d  2.48 d  108.96 
July 31, 2007  64.39  1.20 d  4.88  6.08  (1.43)  (2.82)  (4.25)  — e  66.22  9.55  781  1.07 d  1.80 d  68.94 
July 31, 2006  66.27  .95 d,f  1.00  1.95  (1.40)  (2.43)  (3.83)  — e  64.39  2.95  372  1.10 d  1.46 d,f  62.70 
July 31, 2005***  62.00  .22 d  4.30  4.52  (.25)  —  (.25)  —  66.27  7.30 *  165  .82 *d  .35 *d  26.37 * 
Class C                             
July 31, 2008  $66.35  1.44 d  (5.70)  (4.26)  (2.22)  (6.74)  (8.96)  — e  $53.13  (7.47)  $363  1.09 d  2.47 d  108.96 
July 31, 2007  64.37  1.18 d  4.89  6.07  (1.27)  (2.82)  (4.09)  — e  66.35  9.54  168  1.07 d  1.77 d  68.94 
July 31, 2006  66.25  1.01 d,f  .93  1.94  (1.39)  (2.43)  (3.82)  — e  64.37  2.93  231  1.10 d  1.56 d,f  62.70 
July 31, 2005***  62.00  .25 d  4.28  4.53  (.28)  —  (.28)  —  66.25  7.32 *  90  .82 *d  .38 *d  26.37 * 
Class M                             
July 31, 2008  $66.75  1.57 d  (5.69)  (4.12)  (2.50)  (6.74)  (9.24)  — e  $53.39  (7.24)  $499  .84 d  2.71 d  108.96 
July 31, 2007  64.67  1.37 d  4.90  6.27  (1.37)  (2.82)  (4.19)  — e  66.75  9.82  156  .82 d  2.03 d  68.94 
July 31, 2006  66.38  1.24 d,f  .87  2.11  (1.39)  (2.43)  (3.82)  — e  64.67  3.19  139  .85 d  1.89 d,f  62.70 
July 31, 2005***  62.00  .35 d  4.30  4.65  (.27)  —  (.27)  —  66.38  7.52 *  142  .64 *d  .54 *d  26.37 * 
Class R                             
July 31, 2008  $66.79  1.71 d  (5.69)  (3.98)  (2.76)  (6.74)  (9.50)  — e  $53.31  (7.02)  $340  .59 d  2.96 d  108.96 
July 31, 2007  64.74  1.48 d  4.97  6.45  (1.58)  (2.82)  (4.40)  — e  66.79  10.09  112  .57 d  2.16 d  68.94 
July 31, 2006  66.54  1.82 d,f  .50  2.32  (1.69)  (2.43)  (4.12)  — e  64.74  3.51  4  .60 d  2.82 d,f  62.70 
July 31, 2005***  62.00  .55 d  4.25  4.80  (.26)  —  (.26)  —  66.54  7.75 *  1  .45 *d  .84 *d  26.37 * 
Class Y                             
July 31, 2008  $68.18  2.15 d  (5.91)  (3.76)  (2.97)  (6.74)  (9.71)  — e  $54.71  (6.54)  $27,832  .09 d  3.47 d  108.96 
July 31, 2007  65.95  1.90 d  5.01  6.91  (1.86)  (2.82)  (4.68)  — e  68.18  10.64  45,725  .07 d  2.78 d  68.94 
July 31, 2006  67.48  1.67 d,f  .98  2.65  (1.75)  (2.43)  (4.18)  — e  65.95  3.97  63,487  .10 d  2.49 d,f  62.70 
July 31, 2005***  62.71  .77 d  4.30  5.07  (.30)  —  (.30)  —  67.48  8.10 *  84,103  .07 *d  1.18 *d  26.37 * 

See page 62 for Notes to Financial Highlights.

The accompanying notes are an integral part of these financial statements.

56    57

Financial highlights (For a common share outstanding throughout the period) cont.

INVESTMENT OPERATIONS: LESS DISTRIBUTIONS: RATIOS AND SUPPLEMENTAL DATA:  
                          Ratio of net   
  Net asset value,    Net realized and  Total from    From net        Total return  Net assets,  Ratio of expenses  investment income   
  beginning  Net investment  unrealized gain (loss)  investment  From net  realized gain on  Total  Redemption  Net asset value,  at net asset  end of period  to average  (loss) to average  Portfolio 
Period ended  of period  income (loss) a  on investments  operations  investment income  investments  distributions  fees  end of period  value (%) b  (in thousands)  net assets (%) c  net assets (%)  turnover (%) 
Putnam RetirementReady 2010 Fund  
Class A 
July 31, 2008  $59.21 2.17 d (4.48) (2.31) (2.73) (2.91) (5.64) — e $51.26 (4.40) $23,725 .34 d 3.89 d 129.01
July 31, 2007  58.69 1.96 d 2.72 4.68 (2.08) (2.08) (4.16) — e 59.21 8.11 40,696 .31 d 3.29 d 56.75
July 31, 2006  59.72 1.68 d,f (.17) 1.51 (1.52) (1.02) (2.54) — e 58.69 2.54 44,579 .34 d 2.84 d,f 61.79
July 31, 2005***  56.79 .73 d 2.42 3.15 (.22) — (.22) — 59.72 5.55 * 39,291 .26 *d 1.26 *d 33.53 *
Class B 
July 31, 2008  $57.84 1.69 d (4.36) (2.67) (2.32) (2.91) (5.23) — e $49.94 (5.11) $242 1.09 d 3.15 d 129.01
July 31, 2007  57.57 1.49 d 2.65 4.14 (1.79) (2.08) (3.87) — e 57.84 7.29 253 1.06 d 2.55 d 56.75
July 31, 2006  58.59 1.20 d,f (.15) 1.05 (1.05) (1.02) (2.07) — e 57.57 1.78 228 1.09 d 2.08 d,f 61.79
July 31, 2005***  56.00 .37 d 2.42 2.79 (.20) — (.20) — 58.59 4.98 * 84 .82 *d .65 *d 33.53 *
Class C 
July 31, 2008  $57.67 1.66 d (4.31) (2.65) (2.38) (2.91) (5.29) — e $49.73 (5.11) $307 1.09 d 3.12 d 129.01
July 31, 2007  57.30 1.49 d 2.63 4.12 (1.67) (2.08) (3.75) — e 57.67 7.28 91 1.06 d 2.55 d 56.75
July 31, 2006  58.62 1.23 d,f (.18) 1.05 (1.35) (1.02) (2.37) — e 57.30 1.78 36 1.09 d 2.12 d,f 61.79
July 31, 2005***  56.00 .41 d 2.38 2.79 (.17) — (.17) — 58.62 4.98 * 15 .82 *d .71 *d 33.53 *
Class M 
July 31, 2008  $57.85 1.80 d (4.33) (2.53) (2.39) (2.91) (5.30) — e $50.02 (4.87) $554 .84 d 3.35 d 129.01
July 31, 2007  57.46 1.63 d 2.65 4.28 (1.81) (2.08) (3.89) — e 57.85 7.56 126 .81 d 2.79 d 56.75
July 31, 2006  58.73 1.38 d,f (.18) 1.20 (1.45) (1.02) (2.47) — e 57.46 2.03 124 .84 d 2.39 d,f 61.79
July 31, 2005***  56.00 .56 d 2.34 2.90 (.17) — (.17) — 58.73 5.19 * 55 .64 *d .97 *d 33.53 *
Class R 
July 31, 2008  $58.00 1.93 d (4.32) (2.39) (2.64) (2.91) (5.55) — e $50.06 (4.63) $399 .59 d 3.62 d 129.01
July 31, 2007  57.56 1.78 d 2.66 4.44 (1.92) (2.08) (4.00) — e 58.00 7.83 216 .56 d 3.05 d 56.75
July 31, 2006  58.83 1.60 d,f (.25) 1.35 (1.60) (1.02) (2.62) — e 57.56 2.30 80 .59 d 2.80 d,f 61.79
July 31, 2005***  56.00 .59 d 2.43 3.02 (.19) — (.19) — 58.83 5.41 * 1 .45 *d 1.06 *d 33.53 *
Class Y 
July 31, 2008  $62.15 2.40 d (4.69) (2.29) (2.89) (2.91) (5.80) — e $54.06 (4.16) $16,726 .09 d 4.11 d 129.01
July 31, 2007  61.41 2.20 d 2.85 5.05 (2.23) (2.08) (4.31) — e 62.15 8.36 23,621 .06 d 3.52 d 56.75
July 31, 2006  62.35 1.90 d,f (.17) 1.73 (1.65) (1.02) (2.67) — e 61.41 2.79 41,478 .09 d 3.07 d,f 61.79
July 31, 2005***  59.18 .86 d 2.54 3.40 (.23) — (.23) — 62.35 5.76 * 44,492 .07 *d 1.42 *d 33.53 *

See page 62 for Notes to Financial Highlights.

The accompanying notes are an integral part of these financial statements.

58   59 

Financial highlights (For a common share outstanding throughout the period) cont.

INVESTMENT OPERATIONS: LESS DISTRIBUTIONS: RATIOS AND SUPPLEMENTAL DATA:  
                          Ratio of net   
  Net asset value,    Net realized and  Total from    From net        Total return  Net assets,  Ratio of expenses  investment income   
  beginning  Net investment  unrealized gain (loss)  investment  From net  realized gain on  Total  Redemption  Net asset value,  at net asset  end of period  to average  (loss) to average  Portfolio 
Period ended  of period  income (loss) a  on investments  operations  investment income  investments  distributions  fees  end of period  value (%) b  (in thousands)  net assets (%) c  net assets (%)  turnover (%) 
Putnam RetirementReady Maturity Fund  
Class A                             
July 31, 2008  $57.13  2.12 d  (3.87)  (1.75)  (2.33)  (2.45)  (4.78)  — e  $50.60  (3.37)  $14,067  .34 d  3.89 d  138.89 
July 31, 2007  55.97  1.98 d  2.13  4.11  (2.13)  (.82)  (2.95)  — e  57.13  7.43  22,651  .33 d  3.45 d  62.34 
July 31, 2006  57.51  1.74 d,f  (.70)  1.04  (1.83)  (.75)  (2.58)  — e  55.97  1.82  31,206  .35 d  3.07 d,f  61.89 
July 31, 2005***  55.96  .80 d  1.50  2.30  (.75)  —  (.75)  —  57.51  4.15 *  25,732  .26 *d  1.41 *d  41.89 * 
Class B                             
July 31, 2008  $57.17  1.68 d  (3.85)  (2.17)  (1.87)  (2.45)  (4.32)  — e  $50.68  (4.12)  $43  1.09 d  3.03 d  138.89 
July 31, 2007  56.01  1.56 d  2.13  3.69  (1.71)  (.82)  (2.53)  — e  57.17  6.65  219  1.08 d  2.70 d  62.34 
July 31, 2006  57.54  1.31 d,f  (.70)  .61  (1.39)  (.75)  (2.14)  — e  56.01  1.06  138  1.10 d  2.31 d,f  61.89 
July 31, 2005***  56.00  .47 d  1.51  1.98  (.44)  —  (.44)  —  57.54  3.55 *  124  .82 *d  .83 *d  41.89 * 
Class C                             
July 31, 2008  $57.27  1.71 d  (3.86)  (2.15)  (1.89)  (2.45)  (4.34)  — e  $50.78  (4.06)  $1  1.09 d  3.14 d  138.89 
July 31, 2007  56.04  1.58 d  2.10  3.68  (1.63)  (.82)  (2.45)  — e  57.27  6.62  1  1.08 d  2.77 d  62.34 
July 31, 2006  57.56  1.36 d,f  (.73)  .63  (1.40)  (.75)  (2.15)  — e  56.04  1.09  1  1.10 d  2.31 d,f  61.89 
July 31, 2005***  56.00  .46 d  1.54  2.00  (.44)  —  (.44)  —  57.56  3.59 *  1  .82 *d  .81 *d  41.89 * 
Class M                             
July 31, 2008  $57.27  1.87 d  (3.90)  (2.03)  (2.07)  (2.45)  (4.52)  — e  $50.72  (3.87)  $125  .84 d  3.54 d  138.89 
July 31, 2007  55.99  1.69 d  2.13  3.82  (1.72)  (.82)  (2.54)  — e  57.27  6.88  14  .83 d  2.94 d  62.34 
July 31, 2006  57.54  1.57 d,f  (.81)  .76  (1.56)  (.75)  (2.31)  — e  55.99  1.33  75  .85 d  2.86 d,f  61.89 
July 31, 2005***  56.00  .61 d  1.49  2.10  (.56)  —  (.56)  —  57.54  3.76 *  2  .64 *d  1.07 *d  41.89 * 
Class R                             
July 31, 2008  $57.15  1.94 d  (3.83)  (1.89)  (2.20)  (2.45)  (4.65)  — e  $50.61  (3.62)  $155  .59 d  3.63 d  138.89 
July 31, 2007  55.99  1.85 d  2.12  3.97  (1.99)  (.82)  (2.81)  — e  57.15  7.16  81  .58 d  3.22 d  62.34 
July 31, 2006  57.56  1.62 d,f  (.73)  .89  (1.71)  (.75)  (2.46)  — e  55.99  1.56  48  .60 d  2.97 d,f  61.89 
July 31, 2005***  56.00  .67 d  1.54  2.21  (.65)  —  (.65)  —  57.56  3.97 *  1  .45 *d  1.19 *d  41.89 * 
Class Y                             
July 31, 2008  $57.27  2.25 d  (3.86)  (1.61)  (2.47)  (2.45)  (4.92)  — e  $50.74  (3.12)  $7,191  .09 d  4.13 d  138.89 
July 31, 2007  56.11  2.13 d  2.13  4.26  (2.28)  (.82)  (3.10)  — e  57.27  7.70  9,729  .08 d  3.70 d  62.34 
July 31, 2006  57.65  1.86 d,f  (.68)  1.18  (1.97)  (.75)  (2.72)  — e  56.11  2.07  13,756  .10 d  3.26 d,f  61.89 
July 31, 2005***  56.08  .89 d  1.53  2.42  (.85)  —  (.85)  —  57.65  4.34 *  21,787  .07 *d  1.56 *d  41.89 * 

See page 62 for Notes to Financial Highlights.

The accompanying notes are an integral part of these financial statements.

60  61 

Financial highlights cont.

* Not annualized.

** For the period May 2, 2005 (commencement of operations) to July 31, 2005.

*** For the period November 1, 2004 (commencement of operations) to July 31, 2005.

a Per share net investment income (loss) has been determined on the basis of the weighted average number of shares outstanding during the period.

b Total return does not reflect the effect of sales charges.

c Expense ratios do not include expenses of the underlying funds.

d Reflects an involuntary contractual expense limitation in effect during the period. As a result of such limitation the expenses for the following periods reflect a reduction of the following based on each funds’ average net assets (Note 2).

  7/31/08  7/31/07  7/31/06  7/31/05 
Putnam RetirementReady 2050 Fund  0.05%  0.04%  3.23%  12.75% 
Putnam RetirementReady 2045 Fund  0.02  0.01  0.10  0.57 
Putnam RetirementReady 2040 Fund  0.01  0.01  0.08  0.40 
Putnam RetirementReady 2035 Fund  0.01  0.01  0.04  0.20 
Putnam RetirementReady 2030 Fund  0.01  0.01  0.02  0.13 
Putnam RetirementReady 2025 Fund  0.01  0.01  0.01  0.08 
Putnam RetirementReady 2020 Fund  0.01  0.01  <0.01  0.07 
Putnam RetirementReady 2015 Fund  <0.01  0.01  <0.01  0.06 
Putnam RetirementReady 2010 Fund  0.01  0.02  0.01  0.09 
Putnam RetirementReady Maturity Fund  <0.01  0.00  0.05  0.28 

e Amount represents less than $0.01 per share.

f The net investment income ratios and per share amounts shown for the period ending July 31, 2006 may not correspond with the expected class specific differences for the period due to the timing of sales and repurchases of fund shares in relation to when distributions from the underlying Putnam funds were received.

1 For the period December 22, 2005 to July 31, 2006.

2 For the period August 1, 2005 to December 19, 2005. All class R shares for Fund 2045 and Fund 2040 were liquidated on December 19, 2005.

The accompanying notes are an integral part of these financial statements.

62

Notes to financial statements 7/31/08

Note 1: Significant accounting policies

Each of Putnam RetirementReady® Funds: Putnam RetirementReady 2050 Fund, Putnam RetirementReady 2045 Fund, Putnam RetirementReady 2040 Fund, Putnam RetirementReady 2035 Fund, Putnam RetirementReady 2030 Fund, Putnam RetirementReady 2025 Fund, Putnam RetirementReady 2020 Fund, Putnam RetirementReady 2015 Fund, Putnam RetirementReady 2010 Fund and Putnam RetirementReady Maturity Fund, (collectively the “funds”) is a series of Putnam RetirementReady Funds, a Massachusetts business trust organized on June 8, 2004 (the “Trust”). Each fund is a diversified open-end investment company under the Investment Company Act of 1940, as amended, each of which is represented by a series of shares of beneficial interest. Each fund, except the Putnam RetirementReady Maturity Fund, seeks capital appreciation and current income consistent with a decreasing emphasis on capital appreciation and an increasing emphasis on current income as it approaches its target date. The Putnam RetirementReady Maturity Fund seeks as high a rate of current income as Putnam Investment Management, LLC (“Putnam Management”), the funds’ manager, a wholly-owned subsidiary of Putnam, LLC., believes is consistent with preservation of capital.

Currently there are ten separate funds, of which nine have a target date specified by the calendar year in the name of each fund. The target dates are in five-year increments beginning with the year 2010. The tenth fund is named Putnam RetirementReady Maturity Fund. In July 2007 the Trustees approved a plan to extend each target date fund’s life an additional five years past the current target date. Beginning with the target date each fund will be renamed to include “Maturity.” At the end of the five years each fund will merge into the Putnam RetirementReady Maturity Fund.

These financial statements report on each fund which may invest in the following Putnam Funds: Putnam Income Fund, Putnam Capital Opportunities Fund, The Putnam Fund for Growth and Income, Putnam Money Market Fund, Putnam International Equity Fund and Putnam Voyager Fund (the “underlying Putnam Funds”), which are managed by Putnam Management. In July 2007 the Trustees approved a plan to add nine underlying funds to each portfolio. On September 10, 2007, the following underlying Putnam Funds were added to each fund: Putnam Diversified Income Trust, Putnam Equity Income Fund, Putnam High Yield Advantage Fund, Putnam Income Strategies Fund, Putnam International Growth and Income Fund, Putnam International New Opportunities Fund, Putnam Investors Fund, Putnam Mid Cap Value Fund and Putnam Vista Fund. The financial statements of the underlying Putnam Funds contain additional information about the expenses and investments of the underlying Putnam Funds and are available upon request.

Each fund offers class A, class B, class C, class M, class R and class Y shares. Class A and class M shares are sold with a maximum front-end sales charge of 5.75% and 3.50%, respectively, and generally do not pay a contingent deferred sales charge. Class B shares, which convert to class A shares after approximately eight years, do not pay a front-end sales charge and are subject to a contingent deferred sales charge, if those shares are redeemed within six years of purchase. Class C shares have a one-year 1.00% contingent deferred sales charge and do not convert to class A shares. Class R shares, which are offered to qualified employee benefit plans, are sold at net asset value. The expenses for class A, class B, class C, class M and class R shares may differ based on the distribution fee of each class, which is identified in Note 2. Class Y shares, which are sold at net asset value, are generally subject to the same expenses as class A, class B, class C, class M and class R shares, but do not bear a distribution fee. Class Y shares are generally only available to corporate and institutional clients and clients in other approved programs.

A 1.00% redemption fee may apply on any shares that are redeemed (either by selling or exchanging into another fund) within 7 days of purchase. The redemption fee is accounted for as an addition to paid-in-capital.

Investment income, realized and unrealized gains and losses and expenses of each fund are borne pro-rata based on the relative net assets of each class to the total net assets of each fund, except that each class bears expenses unique to that class (including the distribution fees applicable to such classes). Each class votes as a class only with respect to its own distribution plan or other matters on which a class vote is required by law or determined by the Trustees. Shares of each class would receive their pro-rata share of the net assets of the fund, if that fund were liquidated. In addition, the Trustees declare separate dividends on each class of shares.

In the normal course of business, each fund enters into contracts that may include agreements to indemnify another party under given circumstances. Each fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be, but have not yet been, made against each fund. However, each fund expects the risk of material loss to be remote.

The following is a summary of significant accounting policies consistently followed by the funds in the preparation of their financial statements. The preparation of financial statements is in conformity with accounting principles generally accepted in the United States of America and requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

A) Security valuation The price of each fund’s shares is based on its net asset value (NAV), which is in turn based on the NAV’s of the underlying Putnam Funds in which it invests. The NAV 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 only valued as of the close of regular trading on the New York Stock Exchange each day the exchange is open. Each underlying Putnam Fund values its investments for which market quotations are readily available at the last reported sales price on their principal exchange, or official closing price for certain markets. If no sales are reported — as in the case of some securities traded over-the-counter — a security is valued at its last reported bid price. Market quotations are not considered to be readily available for certain debt obligations; such investments are valued on the basis of valuations furnished by an independent pricing service approved by the Trustees or dealers selected by Putnam Management. Such services or dealers determine valuations for normal institutional-size trading units of such securities using methods based on market transactions for comparable securities and various relationships, generally recognized by institutional traders, between securities. Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close of the New York Stock Exchange. Accordingly, on certain days, each underlying Putnam Fund will fair value foreign equity securities taking into account multiple factors, including movements in the U.S. securities markets. The number of days on which fair value prices will be used will depend on market activity and it is possible that fair value prices will be used by each underlying Putnam fund to a significant extent. Securities quoted in foreign currencies, if any, are translated into U.S. dollars at the current exchange rate. Certain investments, including certain restricted securities and derivatives, are also valued at fair value following procedures approved by the Trustees. Such valuations and procedures are reviewed periodically by the Trustees. Certain securities may be valued on the basis of a price provided by a single source. The fair value of securities is generally determined as the amount that each underlying Putnam Fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security at a given point in time and does not reflect an actual market price, which may be different by a material amount.

B) Security transactions and related investment income Security transactions, which consist of shares of the underlying Putnam Funds, are recorded on the trade date (date the order to buy or sell is executed). Gains or losses from the sale of the underlying Putnam Funds are determined on the identified cost

63

basis. Income and capital gain distributions from the underlying Putnam Funds are recorded on the ex-dividend date.

C) Federal taxes It is the policy of each fund to distribute all of its taxable income within the prescribed time and otherwise comply with the provisions of the Internal Revenue Code of 1986, as amended (the “Code”), applicable to regulated investment companies. It is also the intention of each fund to distribute an amount sufficient to avoid imposition of any excise tax under Section 4982 of the Code. Therefore, no provision has been made for federal taxes on income, capital gains or unrealized appreciation on securities held nor for excise tax on income and capital gains.

Pursuant to federal income tax regulations applicable to regulated investment companies, Putnam RetirementReady Maturity Fund has elected to defer to its fiscal year ending July 31, 2009 $154,958 of losses recognized during the period November 1, 2007 to July 31, 2008.

D) Distributions to shareholders Each fund normally distributes any net investment income and any realized capital gains, annually, except the Putnam RetirementReady Maturity Fund, which normally distributes any net investment income monthly and any net realized capital gains annually. The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. These differences include the following temporary and permanent differences for each fund:

  Differences during the period 
RetirementReady   
2050 Fund  losses on wash sale transactions, tax equalization, reclass of short-term capital gain distributions from underlying Putnam Funds 
2045 Fund  losses on wash sale transactions, redesignation of taxable income, reclass of short-term capital gain distributions from underlying Putnam Funds 
2040 Fund  losses on wash sale transactions, redesignation of taxable income, reclass of short-term capital gain distributions from underlying Putnam Funds 
2035 Fund  losses on wash sale transactions, redesignation of taxable income, reclass of short-term capital gain distributions from underlying Putnam Funds 
2030 Fund  losses on wash sale transactions, redesignation of taxable income, reclass of short-term capital gain distributions from underlying Putnam Funds 
2025 Fund  losses on wash sale transactions, redesignation of taxable income, reclass of short-term capital gain distributions from underlying Putnam Funds 
2020 Fund  losses on wash sale transactions, redesignation of taxable income, reclass of short-term capital gain distributions from underlying Putnam Funds 
2015 Fund  losses on wash sale transactions, redesignation of taxable income, reclass of short-term capital gain distributions from underlying Putnam Funds 
2010 Fund  losses on wash sale transactions, redesignation of taxable income, reclass of short-term capital gain distributions from underlying Putnam Funds 
Maturity Fund  losses on wash sale transactions, post-October loss defferal, redesignation of taxable income, reclass of short-term capital gain distributions 
  from underlying Putnam Funds 

Reclassifications are made to the fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under income tax regulations. For the year ended July 31, 2008, the funds reclassified the following amounts:

  Undistributed Net Accumulated Net Realized Gain/(Loss) Paid-in
  Investment Income on Investment Transactions Capital
RetirementReady       
2050 Fund  $296,374  $(461,374)  $165,000 
2045 Fund  598,670  (598,648)  (22) 
2040 Fund  810,719  (810,719)  — 
2035 Fund  1,195,370  (1,195,370)  — 
2030 Fund  1,535,968  (1,535,968)  — 
2025 Fund  1,721,500  (1,721,500)  — 
2020 Fund  1,623,921  (1,623,921)  — 
2015 Fund  957,987  (957,987)  — 
2010 Fund  256,091  (256,091)  — 
Maturity Fund  106,733  (106,733)  — 

64

The tax basis components of distributable earnings and the federal tax cost as of July 31, 2008 were as follows:

      Net         
      Unrealized  Undistributed  Undistributed    Cost for Federal 
  Unrealized  Unrealized  Appreciation  Ordinary  Long-term  Post-October  Income Tax 
  Appreciation  Depreciation  (Depreciation)  Income  Gain  Loss  Purposes 
RetirementReady               
2050 Fund  $12,078  $(3,335,855)  $(3,323,777)  $130,350  $323,593  $—  $14,298,545 
2045 Fund  21,458  (6,545,310)  (6,523,852)  14,804  836,600  —  28,719,075 
2040 Fund  27,125  (8,758,892)  (8,731,767)  70,291  847,441  —  40,470,321 
2035 Fund  36,863  (13,292,162)  (13,255,299)  185,757  1,334,066  —  62,364,329 
2030 Fund  40,959  (17,724,658)  (17,683,699)  437,989  2,247,319  —  84,885,633 
2025 Fund  47,145  (20,423,516)  (20,376,371)  724,507  1,998,198  —  103,176,589 
2020 Fund  52,846  (19,954,174)  (19,901,328)  1,128,824  1,074,814  —  111,134,172 
2015 Fund  36,255  (15,536,203)  (15,499,948)  1,648,745  986,217  —  107,616,775 
2010 Fund  16,215  (5,331,397)  (5,315,182)  952,801  —  —  47,317,073 
Maturity Fund  5,093  (2,437,919)  (2,432,826)  4,335  —  $(154,958)  24,217,580 

E) Expenses of the Trust Expenses directly charged or attributable to any fund will be paid from the assets of that fund. Generally, expenses of the Trust will be allocated among and charged to the assets of each fund on a basis that the Trustees deem fair and equitable, which may be based on the relative assets of each fund or the nature of the services performed and relative applicability to each fund. Expenses of the underlying Putnam funds are not reflected as expenses in the accompanying Statement of Operations and Financial Highlights.

Note 2: Management fee, administrative services and
other transactions

Each fund pays Putnam Management for management and investment advisory services monthly at an annual rate of 0.05% based on the average net assets of each fund.

Putnam Management has agreed to waive fees and reimburse expenses of each fund through June 30, 2009 to the extent necessary to ensure that each fund’s expenses (exclusive of the underlying Putnam Fund expenses) do not exceed the simple average of the expenses of all front-end load funds viewed by Lipper Inc. as having the same investment classification or objective as the funds. The expense reimbursement is based on a comparison of the funds’ expenses with the average annualized operating expenses of the funds in its Lipper peer group for each calendar quarter during the fund’s last fiscal year, excluding 12b-1 fees and without giving effect to any expense offset and brokerage/service arrangements that may reduce fund expenses.

Putnam Management has agreed to limit its compensation (and, to the extent necessary, bear other expenses) through July 31, 2009, to the extent that expenses of each fund (exclusive of brokerage commissions, interest, taxes and extraordinary expenses, fees and expenses of the underlying Putnam Funds in which each fund invests, and payments under the fund’s distribution plan) would exceed an annual rate of 0.10% of each fund’s average net assets.

For the year ended July 31, 2008, each fund’s expenses were limited to the lower of the limits specified above and accordingly, Putnam Management waived the following of its management fee from each fund:

  Fees waived and reimbursed 
  by the Manager 
RetirementReady   
2050 Fund  $5,828 
2045 Fund  4,322 
2040 Fund  5,335 
2035 Fund  7,437 
2030 Fund  7,001 
2025 Fund  8,734 
2020 Fund  8,377 
2015 Fund  5,175 
2010 Fund  4,598 
Maturity Fund  1,162 

Each fund has adopted distribution plans (the “Plans”) with respect to its class A, class B, class C, class M and class R shares pursuant to Rule 12b-1 under the Investment Company Act of 1940. The purpose of the Plans is to compensate Putnam Retail Management Limited Partnership, a wholly-owned subsidiary of Putnam, LLC and Putnam Retail Management GP, Inc., for services provided and expenses incurred in distributing shares of the funds. The Plans provide for payments by each fund to Putnam Retail Management Limited Partnership at an annual rate of up to 0.35%, 1.00%, 1.00%, 1.00% and 1.00% of the average net assets attributable to class A, class B, class C, class M and class R shares, respectively. The Trustees have approved payment by the funds’ at an annual rate of 0.25%, 1.00%, 1.00%, 0.75% and 0.50% of the average net assets attributable to class A, class B, class C, class M, and class R shares, respectively.

For the year ended July 31, 2008, Putnam Retail Management Limited Partnership, acting as underwriter, received net commissions from the sale of class A and class M shares, and received contingent deferred sales charges (CDSC) from redemptions of class B and class C shares, in the following amounts:

65

  Class A Net  Class M Net  Class B  Class C 
  Commissions  Commissions  CDSC  CDSC 
RetirementReady         
2050 Fund  $3,502  $—  $158  $— 
2045 Fund  1,062  7  205  6 
2040 Fund  2,629  5  1,663  8 
2035 Fund  6,052  53  1,219  2 
2030 Fund  2,530  87  753  — 
2025 Fund  2,878  133  3,137  29 
2020 Fund  2,890  451  1,553  17 
2015 Fund  2,092  301  1,375  — 
2010 Fund  1,829  —  244  — 
Maturity Fund  140  —  2  — 
Total  $25,604  $1,037  $10,309  $62 

A deferred sales charge of up to 1.00% and 0.65% is assessed on certain redemptions of class A and class M shares, respectively. For the year ended July 31, 2008, Putnam Retail Management Limited Partnership acting as underwriter, received no monies on class A and class M redemptions, respectively.

Note 3: Purchases and sales of securities

During the year ended July 31, 2008, cost of purchases and proceeds from sales of underlying Putnam Funds were as follows:

  Purchase cost  Sale proceeds 
RetirementReady     
2050 Fund  $19,691,909  $21,442,430 
2045 Fund  36,136,042  43,753,788 
2040 Fund  50,410,957  59,015,978 
2035 Fund  75,161,522  88,697,547 
2030 Fund  96,942,242  108,410,561 
2025 Fund  119,763,786  142,553,648 
2020 Fund  132,897,612  167,664,660 
2015 Fund  119,850,048  144,827,940 
2010 Fund  69,346,505  87,494,390 
Maturity Fund  39,251,141  47,952,071 

Note 4: Capital shares

At July 31, 2008, there was an unlimited number of shares of beneficial interest authorized. Transactions in capital shares were as follows:

RetirementReady 2050 Fund

  Year ended 7/31/08  Year ended 7/31/07 
Class A  Shares  Amount  Shares  Amount 
Shares sold  94,672  $5,234,943  179,319  $11,267,448 
Shares issued in  21,306  1,174,600  3,118  191,928 
connection with         
reinvestment of         
distributions         
  115,978  6,409,543  182,437  11,459,376 
Shares  (123,818)  (6,888,180)  (75,085)  (4,810,497) 
repurchased         
Net increase  (7,840)  $(478,637)  107,352  $6,648,879 
(decrease)         

  Year ended 7/31/08  Year ended 7/31/07 
Class B  Shares  Amount  Shares  Amount 
Shares sold  779  $40,911  1,984  $121,240 
Shares issued in  312  17,171  44  2,685 
connection with         
reinvestment of         
distributions         
  1,091  58,082  2,028  123,925 
Shares  (836)  (42,164)  (558)  (34,718) 
repurchased         
Net increase  255  $15,918  1,470  $89,207 
 
 
  Year ended 7/31/08  Year ended 7/31/07 
Class C  Shares  Amount  Shares  Amount 
Shares sold  453  $24,872  404  $26,008 
Shares issued in  56  3,094  —*  30 
connection with         
reinvestment of         
distributions         
  509  27,966  404  26,038 
Shares  (30)  (1,950)  (177)  (11,501) 
repurchased         
Net increase  479  $26,016  227  $14,537 
 
 
  Year ended 7/31/08  Year ended 7/31/07 
Class M  Shares  Amount  Shares  Amount 
Shares sold  250  $13,492  481  $30,088 
Shares issued in  77  4,211  2  104 
connection with         
reinvestment of         
distributions         
  327  17,703  483  30,192 
Shares  (11)  (545)  (82)  (5,312) 
repurchased         
Net increase  316  $17,158  401  $24,880 

66

  Year ended 7/31/08  Year ended 7/31/07 
Class R  Shares  Amount  Shares  Amount 
Shares sold  2,235  $120,877  914  $57,678 
Shares issued in  233  12,783  10  623 
connection with         
reinvestment of         
distributions         
  2,468  133,660  924  58,301 
Shares  (326)  (18,572)  (52)  (3,429) 
repurchased         
Net increase  2,142  $115,088  872  $54,872 
 
 
  Year ended 7/31/08  Year ended 7/31/07 
Class Y  Shares  Amount  Shares  Amount 
Shares sold  78,200  $4,527,379  83,798  $5,313,786 
Shares issued in  8,745  483,374  930  57,390 
connection with         
reinvestment of         
distributions         
  86,945  5,010,753  84,728  5,371,176 
Shares  (95,677)  (5,809,811)  (22,895)  (1,438,728) 
repurchased         
Net increase  (8,732)  $(799,058)  61,833  $3,932,448 
(decrease)         
 
 
RetirementReady 2045 Fund       
 
  Year ended 7/31/08  Year ended 7/31/07 
Class A  Shares  Amount  Shares  Amount 
Shares sold  149,225  $9,384,345  221,201  $17,486,899 
Shares issued in  80,710  4,794,959  15,844  1,215,221 
connection with         
reinvestment of         
distributions         
  229,935  14,179,304  237,045  18,702,120 
Shares  (235,947)  (15,426,341)  (160,661)  (12,909,326) 
repurchased         
Net increase  (6,012)  $(1,247,037)  76,384  $5,792,794 
(decrease)         
 
  Year ended 7/31/08  Year ended 7/31/07 
Class B  Shares  Amount  Shares  Amount 
Shares sold  1,244  $72,441  1,183  $87,778 
Shares issued in  809  45,866  88  6,567 
connection with         
reinvestment of         
distributions         
  2,053  118,307  1,271  94,345 
Shares  (870)  (45,171)  (364)  (26,790) 
repurchased         
Net increase  1,183  $73,136  907  $67,555 

  Year ended 7/31/08  Year ended 7/31/07 
Class C  Shares  Amount  Shares  Amount 
Shares sold  134  $8,601  82  $6,400 
Shares issued in  90  5,138  9  602 
connection with         
reinvestment of         
distributions         
  224  13,739  91  7,002 
Shares  (37)  (2,585)  (2)  (71) 
repurchased         
Net increase  187  $11,154  89  $6,931 
   
 
  Year ended 7/31/08  Year ended 7/31/07 
Class M  Shares  Amount  Shares  Amount 
Shares sold  117  $6,161  133  $10,424 
Shares issued in  4  277  5  361 
connection with         
reinvestment of         
distributions         
  121  6,438  138  10,785 
Shares  —  —  (234)  (18,727) 
repurchased         
Net increase  121  $6,438  (96)  $(7,942) 
(decrease)         
 
 
  Year ended 7/31/08  Year ended 7/31/07 
Class R  Shares  Amount  Shares  Amount 
Shares sold  4,662  $291,176  2,296  $186,690 
Shares issued in  1,144  69,405  54  4,224 
connection with         
reinvestment of         
distributions         
  5,806  360,581  2,350  190,914 
Shares  (1,265)  (72,490)  (203)  (16,979) 
repurchased         
Net increase  4,541  $288,091  2,147  $173,935 
 
 
  Year ended 7/31/08  Year ended 7/31/07 
Class Y  Shares  Amount  Shares  Amount 
Shares sold  76,331  $5,168,723  119,221  $10,282,381 
Shares issued in  24,534  1,645,268  8,346  702,235 
connection with         
reinvestment of         
distributions         
  100,865  6,813,991  127,567  10,984,616 
Shares  (115,157)  (9,098,666)  (121,032)  (10,343,194) 
repurchased         
Net increase  (14,292)  $(2,284,675)  6,535  $641,422 
(decrease)         

67

RetirementReady 2040 Fund

  Year ended 7/31/08  Year ended 7/31/07 
Class A  Shares  Amount  Shares  Amount 
Shares sold  205,073  $13,057,675  239,293  $18,657,424 
Shares issued in  105,379  6,378,581  23,105  1,754,062 
connection with         
reinvestment of         
distributions         
  310,452  19,436,256  262,398  20,411,486 
Shares  (305,513)  (19,794,411)  (172,078)  (13,659,572) 
repurchased         
Net increase  4,939  $(358,155)  90,320  $6,751,914 
(decrease)         
  
 
  Year ended 7/31/08  Year ended 7/31/07 
Class B  Shares  Amount  Shares  Amount 
Shares sold  3,784  $207,350  2,423  $184,052 
Shares issued in  1,006  58,252  144  10,534 
connection with         
reinvestment of         
distributions         
  4,790  265,602  2,567  194,586 
Shares  (1,731)  (101,328)  (704)  (52,960) 
repurchased         
Net increase  3,059  $164,274  1,863  $141,626 
 
 
  Year ended 7/31/08  Year ended 7/31/07 
Class C  Shares  Amount  Shares  Amount 
Shares sold  335  $19,856  206  $16,187 
Shares issued in  98  5,707  3  186 
connection with         
reinvestment of         
distributions         
  433  25,563  209  16,373 
Shares  (62)  (3,382)  (1)  (40) 
repurchased         
Net increase  371  $22,181  208  $16,333 
  
 
  Year ended 7/31/08  Year ended 7/31/07 
Class M  Shares  Amount  Shares  Amount 
Shares sold  203  $12,094  341  $25,782 
Shares issued in  68  3,963  25  1,894 
connection with         
reinvestment of         
distributions         
  271  16,057  366  27,676 
Shares  (271)  (14,299)  (512)  (38,957) 
repurchased         
Net increase  —  $1,758  (146)  $(11,281) 
(decrease)         

  
  Year ended 7/31/08  Year ended 7/31/07 
Class R  Shares  Amount  Shares  Amount 
Shares sold  8,481  $536,929  1,574  $128,022 
Shares issued in  1,216  75,338  59  4,587 
connection with         
reinvestment of         
distributions         
  9,697  612,267  1,633  132,609 
Shares  (2,379)  (138,166)  (276)  (22,091) 
repurchased         
Net increase  7,318  $474,101  1,357  $110,518 
 
 
  Year ended 7/31/08  Year ended 7/31/07 
Class Y  Shares  Amount  Shares  Amount 
Shares sold  92,632  $6,298,611  119,748  $10,205,105 
Shares issued in  31,100  2,108,628  10,490  870,596 
connection with         
reinvestment of         
distributions         
  123,732  8,407,239  130,238  11,075,701 
Shares  (145,489)  (11,463,416)  (100,194)  (8,443,187) 
repurchased         
Net increase  (21,757)  $(3,056,177)  30,044  $2,632,514 
(decrease)         
 
 
 
RetirementReady 2035 Fund       
  
  Year ended 7/31/08  Year ended 7/31/07 
Class A  Shares  Amount  Shares  Amount 
Shares sold  284,716  $17,940,986  327,462  $24,804,881 
Shares issued in  153,963  9,000,712  37,192  2,722,507 
connection with         
reinvestment of         
distributions         
  438,679  26,941,698  364,654  27,527,388 
Shares  (424,558)  (26,836,459)  (240,818)  (18,471,483) 
repurchased         
Net increase  14,121  $105,239  123,836  $9,055,905 
  
 
  Year ended 7/31/08  Year ended 7/31/07 
Class B  Shares  Amount  Shares  Amount 
Shares sold  3,102  $182,487  3,203  $235,740 
Shares issued in  2,140  118,663  367  25,891 
connection with         
reinvestment of         
distributions         
  5,242  301,150  3,570  261,631 
Shares  (2,230)  (122,188)  (1,064)  (77,712) 
repurchased         
Net increase  3,012  $178,962  2,506  $183,919 

68

  Year ended 7/31/08  Year ended 7/31/07 
Class C  Shares  Amount  Shares  Amount 
Shares sold  739  $40,089  1,019  $74,371 
Shares issued in  382  21,185  49  3,505 
connection with         
reinvestment of         
distributions         
  1,121  61,274  1,068  77,876 
Shares  (36)  (1,868)  (19)  (1,445) 
repurchased         
Net increase  1,085  $59,406  1,049  $76,431 
 
  
  Year ended 7/31/08  Year ended 7/31/07 
Class M  Shares  Amount  Shares  Amount 
Shares sold  216  $11,823  427  $30,815 
Shares issued in  258  14,490  44  3,159 
connection with         
reinvestment of         
distributions         
  474  26,313  471  33,974 
Shares  (256)  (13,460)  (155)  (11,771) 
repurchased         
Net increase  218  $12,853  316  $22,203 
 
  
  Year ended 7/31/08  Year ended 7/31/07 
Class R  Shares  Amount  Shares  Amount 
Shares sold  6,755  $379,387  4,195  $317,255 
Shares issued in  1,501  85,525  79  5,648 
connection with         
reinvestment of         
distributions         
  8,256  464,912  4,274  322,903 
Shares  (2,290)  (123,903)  (562)  (40,498) 
repurchased         
Net increase  5,966  $341,009  3,712  $282,405 
 
  
  Year ended 7/31/08  Year ended 7/31/07 
Class Y  Shares  Amount  Shares  Amount 
Shares sold  142,077  $9,442,725  161,525  $13,340,407 
Shares issued in  62,928  4,132,480  22,233  1,783,016 
connection with         
reinvestment of         
distributions         
  205,005  13,575,205  183,758  15,123,423 
Shares  (247,654)  (18,696,636)  (175,775)  (14,300,207) 
repurchased         
Net increase  (42,649)  $(5,121,431)  7,983  $823,216 
(decrease)         

RetirementReady 2030 Fund

  Year ended 7/31/08  Year ended 7/31/07 
Class A  Shares  Amount  Shares  Amount 
Shares sold  329,627  $20,114,703  390,809  $29,041,086 
Shares issued in  206,800  11,876,496  54,526  3,923,114 
connection with         
reinvestment of         
distributions         
  536,427  31,991,199  445,335  32,964,200 
Shares  (513,826)  (31,005,920)  (362,737)  (27,307,535) 
repurchased         
Net increase  22,601  $985,279  82,598  $5,656,665 
 
  
  Year ended 7/31/08  Year ended 7/31/07 
Class B  Shares  Amount  Shares  Amount 
Shares sold  5,947  $322,014  5,545  $395,532 
Shares issued in  2,385  132,176  464  32,513 
connection with         
reinvestment of         
distributions         
  8,332  454,190  6,009  428,045 
Shares  (2,670)  (140,594)  (1,993)  (146,412) 
repurchased         
Net increase  5,662  $313,596  4,016  $281,633 
 
  
  Year ended 7/31/08  Year ended 7/31/07 
Class C  Shares  Amount  Shares  Amount 
Shares sold  1,140  $60,999  1,153  $81,439 
Shares issued in  374  20,845  26  1,844 
connection with         
reinvestment of         
distributions         
  1,514  81,844  1,179  83,283 
Shares  (342)  (16,588)  (564)  (40,032) 
repurchased         
Net increase  1,172  $65,256  615  $43,251 
  
  
  Year ended 7/31/08  Year ended 7/31/07 
Class M  Shares  Amount  Shares  Amount 
Shares sold  1,916  $108,008  3,250  $238,774 
Shares issued in  3,234  179,192  813  56,962 
connection with         
reinvestment of         
distributions         
  5,150  287,200  4,063  295,736 
Shares  (1,735)  (93,060)  (2,192)  (156,021) 
repurchased         
Net increase  3,415  $194,140  1,871  $139,715 

69

  Year ended 7/31/08  Year ended 7/31/07 
Class R  Shares  Amount  Shares  Amount 
Shares sold  10,774  $634,898  2,900  $212,070 
Shares issued in  1,973  109,084  120  8,362 
connection with         
reinvestment of         
distributions         
  12,747  743,982  3,020  220,432 
Shares  (1,681)  (94,174)  (802)  (60,244) 
repurchased         
Net increase  11,066  $649,808  2,218  $160,188 
 
 
  Year ended 7/31/08  Year ended 7/31/07 
Class Y  Shares  Amount  Shares  Amount 
Shares sold  194,061  $12,699,180  199,282  $15,994,811 
Shares issued in  94,699  6,043,710  34,778  2,718,258 
connection with         
reinvestment of         
distributions         
  288,760  18,742,890  234,060  18,713,069 
Shares  (279,947)  (20,048,328)  (351,336)  (27,870,670) 
repurchased         
Net increase  8,813  $(1,305,438)  (117,276)  $(9,157,601) 
(decrease)         
 
 
RetirementReady 2025 Fund       
  
  Year ended 7/31/08  Year ended 7/31/07 
Class A  Shares  Amount  Shares  Amount 
Shares sold  375,445  $23,789,822  480,827  $37,320,545 
Shares issued in  241,779  14,528,513  71,387  5,341,148 
connection with         
reinvestment of         
distributions         
  617,224  38,318,335  552,214  42,661,693 
Shares  (647,288)  (40,560,907)  (501,490)  (39,320,045) 
repurchased         
Net increase  (30,064)  $(2,242,572)  50,724  $3,341,648 
(decrease)         
 
 
  Year ended 7/31/08  Year ended 7/31/07 
Class B  Shares  Amount  Shares  Amount 
Shares sold  6,681  $383,068  5,591  $416,293 
Shares issued in  4,147  236,558  916  65,893 
connection with         
reinvestment of         
distributions         
  10,828  619,626  6,507  482,186 
Shares  (7,942)  (446,993)  (1,192)  (88,614) 
repurchased         
Net increase  2,886  $172,633  5,315  $393,572 

  Year ended 7/31/08  Year ended 7/31/07 
Class C  Shares  Amount  Shares  Amount 
Shares sold  961  $56,634  858  $64,183 
Shares issued in  746  42,743  136  9,803 
connection with         
reinvestment of         
distributions         
  1,707  99,377  994  73,986 
Shares  (1,172)  (63,705)  (19)  (1,441) 
repurchased         
Net increase  535  $35,672  975  $72,545 
 
 
  Year ended 7/31/08  Year ended 7/31/07 
Class M  Shares  Amount  Shares  Amount 
Shares sold  1,090  $70,164  1,565  $117,469 
Shares issued in  1,166  67,036  286  20,751 
connection with         
reinvestment of         
distributions         
  2,256  137,200  1,851  138,220 
Shares  (3,877)  (214,134)  (1,620)  (122,811) 
repurchased         
Net increase  (1,621)  $(76,934)  231  $15,409 
(decrease)         
 
 
 
  Year ended 7/31/08 Year ended 7/31/07
Class R  Shares  Amount  Shares  Amount 
Shares sold  10,528  $603,735  2,154  $161,701 
Shares issued in  1,691  96,783  147  10,565 
connection with         
reinvestment of         
distributions         
  12,219  700,518  2,301  172,266 
Shares  (2,312)  (125,767)  (44)  (3,328) 
repurchased         
Net increase  9,907  $574,751  2,257  $168,938 
 
  
  Year ended 7/31/08  Year ended 7/31/07 
Class Y  Shares  Amount  Shares  Amount 
Shares sold  240,817  $14,755,330  248,767  $19,295,928 
Shares issued in  142,145  8,574,195  59,267  4,448,612 
connection with         
reinvestment of         
distributions         
  382,962  23,329,525  308,034  23,744,540 
Shares  (409,879)  (28,242,345)  (457,014)  (34,966,421) 
repurchased         
Net decrease  (26,917)  $(4,912,820)  (148,980)  $(11,221,881) 

70

RetirementReady 2020 Fund

  Year ended 7/31/08  Year ended 7/31/07 
Class A  Shares  Amount  Shares  Amount 
Shares sold  415,471  $24,604,244  559,546  $38,918,335 
Shares issued in  272,165  15,423,590  98,782  6,671,753 
connection with         
reinvestment of         
distributions         
  687,636  40,027,834  658,328  45,590,088 
Shares  (925,717)  (53,675,035)  (602,866)  (42,348,611) 
repurchased         
Net increase  (238,081)  $(13,647,201)  55,462  $3,241,477 
(decrease)         
 
 
  Year ended 7/31/08  Year ended 7/31/07 
Class B  Shares  Amount  Shares  Amount 
Shares sold  8,943  $494,052  4,659  $320,383 
Shares issued in  2,531  139,446  638  42,235 
connection with         
reinvestment of         
distributions         
  11,474  633,498  5,297  362,618 
Shares  (6,531)  (354,149)  (2,567)  (175,491) 
repurchased         
Net increase  4,943  $279,349  2,730  $187,127 
 
 
  Year ended 7/31/08  Year ended 7/31/07 
Class C  Shares  Amount  Shares  Amount 
Shares sold  2,254  $117,623  1,357  $91,484 
Shares issued in  627  34,730  98  6,505 
connection with         
reinvestment of         
distributions         
  2,881  152,353  1,455  97,989 
Shares  (775)  (39,662)  (497)  (33,140) 
repurchased         
Net increase  2,106  $112,691  958  $64,849 
 
 
  Year ended 7/31/08  Year ended 7/31/07 
Class M  Shares  Amount  Shares  Amount 
Shares sold  18,640  $999,607  17,809  $1,223,630 
Shares issued in  3,577  198,028  622  41,228 
connection with         
reinvestment of         
distributions         
  22,217  1,197,635  18,431  1,264,858 
Shares  (28,943)  (1,521,784)  (11,084)  (762,568) 
repurchased         
Net increase  (6,726)  $(324,149)  7,347  $502,290 
(decrease)         

  Year ended 7/31/08  Year ended 7/31/07 
Class R  Shares  Amount  Shares  Amount 
Shares sold  8,233  $452,255  1,739  $119,596 
Shares issued in  1,061  58,677  142  9,404 
connection with         
reinvestment of         
distributions         
  9,294  510,932  1,881  129,000 
Shares  (421)  (21,161)  (30)  (2,047) 
repurchased         
Net increase  8,873  $489,771  1,851  $126,953 
 
 
  Year ended 7/31/08  Year ended 7/31/07 
Class Y  Shares  Amount  Shares  Amount 
Shares sold  215,976  $13,535,828  253,031  $18,843,101 
Shares issued in  120,893  7,488,138  59,189  4,301,264 
connection with         
reinvestment of         
distributions         
  336,869  21,023,966  312,220  23,144,365 
Shares  (405,263)  (27,111,197)  (642,219)  (47,316,819) 
repurchased         
Net decrease  (68,394)  $(6,087,231)  (329,999)  $(24,172,454) 
 
 
RetirementReady 2015 Fund       
 
  Year ended 7/31/08  Year ended 7/31/07 
Class A  Shares  Amount  Shares  Amount 
Shares sold  354,599  $21,639,396  753,679  $51,490,200 
Shares issued in  191,210  11,243,126  89,656  5,962,149 
connection with         
reinvestment of         
distributions         
  545,809  32,882,522  843,335  57,452,349 
Shares  (624,398)  (37,656,001)  (622,017)  (42,641,666) 
repurchased         
Net increase  (78,589)  $(4,773,479)  221,318  $14,810,683 
(decrease)         
 
 
  Year ended 7/31/08  Year ended 7/31/07 
Class B  Shares  Amount  Shares  Amount 
Shares sold  5,000  $283,751  7,885  $520,187 
Shares issued in  1,701  97,649  655  42,664 
connection with         
reinvestment of         
distributions         
  6,701  381,400  8,540  562,851 
Shares  (9,713)  (543,967)  (2,519)  (167,969) 
repurchased         
Net increase  (3,012)  $(162,567)  6,021  $394,882 
(decrease)         
 

71

  Year ended 7/31/08  Year ended 7/31/07 
Class C  Shares  Amount  Shares  Amount 
Shares sold  4,195  $226,835  375  $25,108 
Shares issued in  412  23,708  203  13,289 
connection with         
reinvestment of         
distributions         
  4,607  250,543  578  38,397 
Shares  (314)  (16,785)  (1,627)  (109,060) 
repurchased         
Net increase  4,293  $233,758  (1,049)  $(70,663) 
(decrease)         
 
 
  Year ended 7/31/08  Year ended 7/31/07 
Class M  Shares  Amount  Shares  Amount 
Shares sold  12,404  $669,824  2,520  $165,828 
Shares issued in  398  23,001  106  6,926 
connection with         
reinvestment of         
distributions         
  12,802  692,825  2,626  172,754 
Shares  (5,796)  (308,825)  (2,437)  (163,250) 
repurchased         
Net increase  7,006  $384,000  189  $9,504 
 
 
  Year ended 7/31/08  Year ended 7/31/07 
Class R  Shares  Amount  Shares  Amount 
Shares sold  5,335  $309,331  1,713  $115,132 
Shares issued in  345  19,886  11  749 
connection with         
reinvestment of         
distributions         
  5,680  329,217  1,724  115,881 
Shares  (981)  (65,249)  (98)  (6,701) 
repurchased         
Net increase  4,699  $263,968  1,626  $109,180 
 
 
  Year ended 7/31/08  Year ended 7/31/07 
Class Y  Shares  Amount  Shares  Amount 
Shares sold  174,086  $10,292,096  239,504  $16,341,840 
Shares issued in  84,733  4,997,582  54,998  3,667,280 
connection with         
reinvestment of         
distributions         
  258,819  15,289,678  294,502  20,009,120 
Shares  (420,716)  (26,288,884)  (586,552)  (39,793,743) 
repurchased         
Net decrease  (161,897)  $(10,999,206)  (292,050)  $(19,784,623) 

RetirementReady 2010 Fund

  Year ended 7/31/08  Year ended 7/31/07 
Class A  Shares  Amount  Shares  Amount 
Shares sold  263,496  $14,689,847  320,011  $19,076,702 
Shares issued in  71,611  3,869,139  55,657  3,234,777 
connection with         
reinvestment of         
distributions         
  335,107  18,558,986  375,668  22,311,479 
Shares  (559,601)  (30,378,350)  (447,867)  (26,575,033) 
repurchased         
Net decrease  (224,494)  $(11,819,364)  (72,199)  $(4,263,554) 
 
 
  Year ended 7/31/08  Year ended 7/31/07 
Class B  Shares  Amount  Shares  Amount 
Shares sold  2,271  $120,628  3,511  $206,477 
Shares issued in  481  25,389  332  18,937 
connection with         
reinvestment of         
distributions         
  2,752  146,017  3,843  225,414 
Shares  (2,276)  (119,552)  (3,426)  (199,682) 
repurchased         
Net increase  476  $26,465  417  $25,732 
 
 
  Year ended 7/31/08  Year ended 7/31/07 
Class C  Shares  Amount  Shares  Amount 
Shares sold  5,672  $284,402  2,023  $116,953 
Shares issued in  154  8,128  45  2,535 
connection with         
reinvestment of         
distributions         
  5,826  292,530  2,068  119,488 
Shares  (1,217)  (62,324)  (1,129)  (66,260) 
repurchased         
Net increase  4,609  $230,206  939  $53,228 
 
 
  Year ended 7/31/08  Year ended 7/31/07 
Class M  Shares  Amount  Shares  Amount 
Shares sold  11,273  $563,317  858  $49,935 
Shares issued in  192  10,187  154  8,758 
connection with         
reinvestment of         
distributions         
  11,465  573,504  1,012  58,693 
Shares  (2,580)  (134,139)  (987)  (57,675) 
repurchased         
Net increase  8,885  $439,365  25  $1,018 

72

  Year ended 7/31/08  Year ended 7/31/07 
Class R  Shares  Amount  Shares  Amount 
Shares sold  4,902  $258,538  3,637  $209,326 
Shares issued in  448  23,672  98  5,631 
connection with         
reinvestment of         
distributions         
  5,350  282,210  3,735  214,957 
Shares  (1,103)  (59,755)  (1,403)  (81,082) 
repurchased         
Net increase  4,247  $222,455  2,332  $133,875 
 
 
  Year ended 7/31/08  Year ended 7/31/07 
Class Y  Shares  Amount  Shares  Amount 
Shares sold  129,058  $7,486,670  147,962  $9,238,326 
Shares issued in  31,357  1,783,908  36,183  2,204,258 
connection with         
reinvestment of         
distributions         
  160,415  9,270,578  184,145  11,442,584 
Shares  (231,077)  (13,715,366)  (479,577)  (29,895,229) 
repurchased         
Net decrease  (70,662)  $(4,444,788)  (295,432)  $(18,452,645) 
 
 
RetirementReady Maturity Fund     
  
  Year ended 7/31/08  Year ended 7/31/07 
Class A  Shares  Amount  Shares  Amount 
Shares sold  142,228  $7,759,627  254,298  $14,678,621 
Shares issued in  33,095  1,788,939  29,075  1,668,732 
connection with         
reinvestment of         
distributions         
  175,323  9,548,566  283,373  16,347,353 
Shares  (293,826)  (15,744,502)  (444,444)  (25,617,268) 
repurchased         
Net decrease  (118,503)  $(6,195,936)  (161,071)  $(9,269,915) 
 
 
  Year ended 7/31/08  Year ended 7/31/07 
Class B  Shares  Amount  Shares  Amount 
Shares sold  26  $1,347  1,374  $78,973 
Shares issued in  108  5,877  129  7,406 
connection with         
reinvestment of         
distributions         
  134  7,224  1,503  86,379 
Shares  (3,123)  (175,886)  (135)  (7,767) 
repurchased         
Net increase  (2,989)  $(168,662)  1,368  $78,612 
(decrease)         

  
   Year ended 7/31/08  Year ended 7/31/07 
Class C  Shares  Amount  Shares  Amount 
Shares sold  —  $—  442  $25,000 
Shares issued in  2  86  16  901 
connection with         
reinvestment of         
distributions         
  2  86  458  25,901 
Shares  —  —  (458)  (26,476) 
repurchased         
Net increase  2  $86  —*  $(575) 
(decrease)         
 
 
  Year ended 7/31/08  Year ended 7/31/07 
Class M  Shares  Amount  Shares  Amount 
Shares sold  6,311  $346,096  300  $17,111 
Shares issued in  293  15,785  64  3,652 
connection with         
reinvestment of         
distributions         
  6,604  361,881  364  20,763 
Shares  (4,390)  (228,416)  (1,460)  (85,149) 
repurchased         
Net increase  2,214  $133,465  (1,096)  $(64,386) 
(decrease)         
 
 
  Year ended 7/31/08  Year ended 7/31/07 
Class R  Shares  Amount  Shares  Amount 
Shares sold  1,546  $82,533  734  $42,531 
Shares issued in  160  8,604  63  3,617 
connection with         
reinvestment of         
distributions         
  1,706  91,137  797  46,148 
Shares  (67)  (3,508)  (239)  (13,765) 
repurchased         
Net increase  1,639  $87,629  558  $32,383 
 
 
  Year ended 7/31/08  Year ended 7/31/07 
Class Y  Shares  Amount  Shares  Amount 
Shares sold  79,883  $4,336,287  87,305  $5,044,556 
Shares issued in  13,557  733,867  9,991  574,622 
connection with         
reinvestment of         
distributions         
  93,440  5,070,154  97,296  5,619,178 
Shares  (121,591)  (6,673,549)  (172,595)  (9,910,526) 
repurchased         
Net decrease  (28,151)  $(1,603,395)  (75,299)  $(4,291,348) 

* Represents fractional shares.

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At July 31, 2008, Putnam LLC and its affiliates owned the following shares of each fund:

    Percentage of  Value at 
  Shares owned  shares outstanding  July 31, 2008 
RetirementReady       
2050 Fund class C  24  3.30%  $1,133 
2050 Fund class M  24  3.10%  1,142 
2045 Fund class C  2  0.50%  93 
2045 Fund class M  17  12.80%  873 
2040 Fund class C  24  3.90%  1,176 
2040 Fund class M  2  1.00%  93 
Maturity Fund class C  21  100.00%  1,071 
Maturity Fund class M  21  0.90%  1,080 

Note 5:Transactions with affiliated issuers

Transactions during the period with companies in which the fund owned at least 5% or more of the outstanding voting securities, or a company which is under common ownership or control were as follows:

RetirementReady 2050 Fund

Affiliates  Purchase cost  Sale proceeds  Investment income  Value 
Putnam Income Strategies Fund  $—  $—  $—  $— 
Putnam Capital Opportunities Fund  1,511,084  2,083,494  10,528  1,271,931 
Putnam Equity Income Fund  1,848,646  688,620  14,602  868,806 
Putnam Fund for Growth and Income  1,602,354  4,302,173  28,686  855,628 
Putnam International Equity Fund  1,890,911  5,339,652  38,311  1,084,323 
Putnam International Growth and Income Fund  2,436,742  877,106  25,804  1,082,909 
Putnam International New Opportunities Fund  2,256,612  913,934  20,694  1,078,093 
Putnam Investors Fund  3,591,167  1,328,477  —  1,683,456 
Putnam Mid Cap Value Fund  921,329  344,374  3,236  403,652 
Putnam Vista Fund  850,354  364,017  —  400,493 
Putnam Voyager Fund  1,910,564  4,105,826  —  1,696,663 
Putnam Diversified Income Trust  —  -  —  — 
Putnam High Yield Advantage Fund  460,879  214,643  16,057  221,651 
Putnam Income Fund  286,788  705,803  19,696  222,014 
Putnam Money Market Fund  124,479  174,311  4,788  105,149 
Totals  $19,691,909  $21,442,430  $182,402  $10,974,768 
 
Market values are shown for those securities affiliated at period end.       
  
RetirementReady 2045 Fund         
 
 
Affiliates  Purchase cost  Sale proceeds  Investment income  Value 
Putnam Income Strategies Fund  $—  $—  $—  $— 
Putnam Capital Opportunities Fund  2,350,885  4,170,075  20,852  2,485,720 
Putnam Equity Income Fund  3,678,952  1,382,123  29,050  1,729,650 
Putnam Fund for Growth and Income  2,368,442  8,794,827  59,650  1,723,534 
Putnam International Equity Fund  2,765,060  10,918,184  78,715  2,196,997 
Putnam International Growth and Income Fund  4,897,002  1,778,894  52,626  2,172,280 
Putnam International New Opportunities Fund  4,530,073  1,854,593  42,205  2,162,267 
Putnam Investors Fund  7,132,771  2,672,352  —  3,342,215 
Putnam Mid Cap Value Fund  1,757,644  663,295  6,250  768,355 
Putnam Vista Fund  1,619,409  700,172  —  762,219 
Putnam Voyager Fund  2,803,891  8,339,264  —  3,368,276 
Putnam Diversified Income Trust  407,294  188,761  11,472  196,752 
Putnam High Yield Advantage Fund  932,104  435,286  32,531  448,090 
Putnam Income Fund  468,131  1,405,064  45,006  516,068 
Putnam Money Market Fund  424,384  450,898  13,569  322,800 
Totals  $36,136,042  $43,753,788  $391,926  $22,195,223 
 
 
Market values are shown for those securities affiliated at period end.       

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RetirementReady 2040 Fund

Affiliates  Purchase cost  Sale proceeds  Investment income  Value 
Putnam Income Strategies Fund  $—  $—  $—  $— 
Putnam Capital Opportunities Fund  3,044,349  5,096,757  28,164  3,328,687 
Putnam Equity Income Fund  5,066,204  1,883,572  39,630  2,396,149 
Putnam Fund for Growth and Income  3,085,457  11,290,089  79,692  2,356,897 
Putnam International Equity Fund  3,459,542  13,641,240  103,853  2,877,127 
Putnam International Growth and Income Fund  6,489,030  2,333,584  70,408  2,892,285 
Putnam International New Opportunities Fund  5,997,180  2,433,776  56,449  2,879,145 
Putnam Investors Fund  9,910,766  3,701,942  —  4,656,768 
Putnam Mid Cap Value Fund  2,419,015  904,921  8,687  1,061,130 
Putnam Vista Fund  2,225,601  954,215  —  1,052,673 
Putnam Voyager Fund  3,698,306  10,552,536  —  4,692,332 
Putnam Diversified Income Trust  1,890,195  870,182  52,511  920,134 
Putnam High Yield Advantage Fund  1,519,993  704,072  52,473  736,339 
Putnam Income Fund  994,312  3,350,506  98,078  1,102,940 
Putnam Money Market Fund  611,007  1,298,586  38,280  785,948 
Totals  $50,410,957  $59,015,978  $628,225  $31,738,554 
 
 
Market values are shown for those securities affiliated at period end.  
  
 
RetirementReady 2035 Fund         
  
Affiliates  Purchase cost  Sale proceeds  Investment income  Value 
Putnam Income Strategies Fund  $—  $—  $—  $— 
Putnam Capital Opportunities Fund  4,153,537  6,969,723  41,624  4,850,865 
Putnam Equity Income Fund  7,351,792  2,576,237  60,451  3,575,468 
Putnam Fund for Growth and Income  4,427,638  16,513,547  120,441  3,501,132 
Putnam International Equity Fund  4,685,198  19,376,921  148,080  4,050,697 
Putnam International Growth and Income Fund  9,075,111  3,066,004  102,591  4,161,695 
Putnam International New Opportunities Fund  8,357,406  3,210,492  82,255  4,142,721 
Putnam Investors Fund  14,390,468  5,079,168  —  6,951,914 
Putnam Mid Cap Value Fund  3,478,944  1,231,997  13,029  1,568,228 
Putnam Vista Fund  3,195,514  1,312,240  —  1,555,726 
Putnam Voyager Fund  5,081,688  15,131,657  —  7,005,991 
Putnam Diversified Income Trust  4,475,488  1,971,534  131,958  2,253,067 
Putnam High Yield Advantage Fund  3,361,442  1,492,536  122,924  1,683,352 
Putnam Income Fund  2,059,020  8,128,431  220,503  2,330,531 
Putnam Money Market Fund  1,068,276  2,637,060  75,983  1,477,643 
Totals  $75,161,522  $88,697,547  $1,119,839  $49,109,030 
 
 
Market values are shown for those securities affiliated at period end.  

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RetirementReady 2030 Fund         
 
Affiliates  Purchase cost  Sale proceeds  Investment income  Value 
Putnam Income Strategies Fund  $—  $—  $—  $— 
Putnam Capital Opportunities Fund  4,717,670  7,771,565  49,774  5,860,724 
Putnam Equity Income Fund  9,058,471  2,943,120  78,520  4,601,824 
Putnam Fund for Growth and Income  5,309,654  19,375,983  152,792  4,599,052 
Putnam International Equity Fund  5,620,333  21,629,593  200,330  5,493,797 
Putnam International Growth and Income Fund  11,118,898  3,474,363  130,283  5,294,952 
Putnam International New Opportunities Fund  10,166,801  3,607,822  104,317  5,270,655 
Putnam Investors Fund  17,682,596  5,789,158  —  8,894,625 
Putnam Mid Cap Value Fund  4,176,178  1,375,614  16,092  1,960,714 
Putnam Vista Fund  3,835,467  1,484,385  —  1,944,939 
Putnam Voyager Fund  5,950,068  17,516,802  —  8,963,699 
Putnam Diversified Income Trust  8,463,416  3,500,310  261,445  4,460,413 
Putnam High Yield Advantage Fund  5,782,380  2,415,508  221,781  3,033,805 
Putnam Income Fund  3,305,753  12,548,285  386,204  4,245,640 
Putnam Money Market Fund  1,754,557  4,978,053  136,650  2,577,095 
Totals  $96,942,242  $108,410,561  $1,738,188  $67,201,934 
 
 
Market values are shown for those securities affiliated at period end.  
 
 
RetirementReady 2025 Fund         
 
Affiliates  Purchase cost  Sale proceeds  Investment income  Value 
Putnam Income Strategies Fund  $—  $—  $—  $— 
Putnam Capital Opportunities Fund  5,267,689  9,281,858  58,582  6,709,627 
Putnam Equity Income Fund  11,147,641  3,868,086  94,089  5,425,560 
Putnam Fund for Growth and Income  6,043,796  24,221,011  185,361  5,316,849 
Putnam International Equity Fund  5,651,871  26,400,470  206,193  5,520,766 
Putnam International Growth and Income Fund  12,322,311  4,143,247  141,557  5,619,713 
Putnam International New Opportunities Fund  11,242,340  4,250,869  113,479  5,594,226 
Putnam Investors Fund  21,962,475  7,721,639  —  10,558,701 
Putnam Mid Cap Value Fund  4,816,005  1,688,709  18,335  2,169,722 
Putnam Vista Fund  4,439,948  1,820,900  —  2,152,399 
Putnam Voyager Fund  6,714,561  21,799,955  —  10,641,438 
Putnam Diversified Income Trust  13,902,450  6,037,846  422,996  7,053,067 
Putnam High Yield Advantage Fund  8,195,812  3,585,558  310,092  4,142,042 
Putnam Income Fund  5,138,305  19,347,155  655,041  7,211,725 
Putnam Money Market Fund  2,918,582  8,386,345  249,494  4,684,383 
Totals  $119,763,786  $142,553,648  $2,455,219  $82,800,218 
 
 
Market values are shown for those securities affiliated at period end.  

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RetirementReady 2020 Fund         
 
Affiliates  Purchase cost  Sale proceeds  Investment income  Value 
Putnam Income Strategies Fund  $6,439,224  $2,922,599  $135,770  $3,171,086 
Putnam Capital Opportunities Fund  5,452,499  9,558,170  67,957  7,049,045 
Putnam Equity Income Fund  11,816,966  4,368,232  98,314  5,471,085 
Putnam Fund for Growth and Income  5,958,625  26,858,265  198,201  5,303,096 
Putnam International Equity Fund  3,780,656  21,127,181  151,579  3,684,079 
Putnam International Growth and Income Fund  9,502,902  3,395,037  113,620  4,091,279 
Putnam International New Opportunities Fund  8,582,093  3,418,605  90,968  4,072,387 
Putnam Investors Fund  23,217,434  8,721,605  —  10,594,920 
Putnam Mid Cap Value Fund  5,221,776  1,918,675  20,804  2,233,420 
Putnam Vista Fund  4,810,269  2,082,073  —  2,215,537 
Putnam Voyager Fund  6,460,721  24,387,794  —  10,678,485 
Putnam Diversified Income Trust  20,810,490  9,459,091  630,507  10,167,110 
Putnam High Yield Advantage Fund  9,465,714  4,321,569  356,269  4,599,172 
Putnam Income Fund  7,139,607  33,577,669  1,014,497  10,405,438 
Putnam Money Market Fund  4,238,636  11,548,095  395,802  7,496,705 
Totals  $132,897,612  $167,664,660  $3,274,288  $91,232,844 
 
 
Market values are shown for those securities affiliated at period end.  
  
 
RetirementReady 2015 Fund         
 
Affiliates  Purchase cost  Sale proceeds  Investment income  Value 
Putnam Income Strategies Fund  $22,912,980  $8,825,030  $525,915  $12,770,748 
Putnam Capital Opportunities Fund  4,339,681  7,174,717  53,790  6,246,264 
Putnam Equity Income Fund  7,726,303  2,441,355  67,508  3,959,945 
Putnam Fund for Growth and Income  4,476,314  19,192,614  144,427  4,163,125 
Putnam International Equity Fund  2,418,874  9,459,277  98,987  2,705,503 
Putnam International Growth and Income Fund  2,809,887  859,957  33,121  1,342,060 
Putnam International New Opportunities Fund  2,533,086  859,962  26,532  1,335,874 
Putnam Investors Fund  15,267,666  4,900,242  —  7,708,309 
Putnam Mid Cap Value Fund  2,355,011  749,129  9,318  1,119,051 
Putnam Vista Fund  2,179,638  830,985  —  1,110,219 
Putnam Voyager Fund  4,450,015  17,373,136  —  7,769,719 
Putnam Diversified Income Trust  26,835,994  10,336,558  880,611  14,791,323 
Putnam High Yield Advantage Fund  8,390,415  3,264,784  341,231  4,608,792 
Putnam Income Fund  7,511,724  39,874,419  1,112,514  11,474,110 
Putnam Money Market Fund  5,642,460  18,685,775  583,128  11,011,785 
Totals  $119,850,048  $144,827,940  $3,877,082  $92,116,827 
 
  
Market values are shown for those securities affiliated at period end.  

77

RetirementReady 2010 Fund         
 
Affiliates  Purchase cost  Sale proceeds  Investment income  Value 
Putnam Income Strategies Fund  $21,267,178  $10,056,640  $441,011  $10,103,845 
Putnam Capital Opportunities Fund  2,320,471  2,406,839  20,965  2,169,143 
Putnam Equity Income Fund  2,952,520  1,215,529  23,119  1,277,382 
Putnam Fund for Growth and Income  1,367,712  7,289,564  37,991  789,373 
Putnam International Equity Fund  939,084  991,913  35,675  861,262 
Putnam International Growth and Income Fund  —  —  -  — 
Putnam International New Opportunities Fund  —  —  -  — 
Putnam Investors Fund  5,243,410  2,188,122  —  2,230,191 
Putnam Mid Cap Value Fund  —  —  -  — 
Putnam Vista Fund  —  —  -  — 
Putnam Voyager Fund  1,986,220  6,799,541  —  2,247,263 
Putnam Diversified Income Trust  18,430,541  8,768,785  543,337  8,622,530 
Putnam High Yield Advantage Fund  4,436,249  2,108,587  164,104  2,078,473 
Putnam Income Fund  4,916,111  28,905,625  538,666  4,397,612 
Putnam Money Market Fund  5,487,009  16,763,245  425,283  7,224,817 
Totals  $69,346,505  $87,494,390  $2,230,151  $42,001,891 
 
 
Market values are shown for those securities affiliated at period end.       
 
RetirementReady Maturity Fund         
 
Affiliates  Purchase cost  Sale proceeds  Investment income  Value 
Putnam Income Strategies Fund  $16,077,434  $7,495,554  $344,929  $7,716,816 
Putnam Capital Opportunities Fund  723,169  1,319,183  6,693  690,939 
Putnam Equity Income Fund  3,511,173  1,432,457  28,058  1,522,866 
Putnam Fund for Growth and Income  345,928  3,631,336  10,105  — 
Putnam International Equity Fund  —  —  -  — 
Putnam International Growth and Income Fund  —  —  -  — 
Putnam International New Opportunities Fund  —  —  -  — 
Putnam Investors Fund  1,736,617  717,599  —  739,155 
Putnam Mid Cap Value Fund  —  —  -  — 
Putnam Vista Fund  —  —  -  — 
Putnam Voyager Fund  804,795  3,342,082  —  745,239 
Putnam Diversified Income Trust  8,183,013  3,848,431  248,540  3,850,095 
Putnam High Yield Advantage Fund  2,292,670  1,075,404  87,379  1,084,844 
Putnam Income Fund  2,217,311  16,167,117  201,017  1,045,122 
Putnam Money Market Fund  3,359,031  8,922,908  252,623  4,389,678 
Totals  $39,251,141  $47,952,071  $1,179,344  $21,784,754 
 
 
Market values are shown for those securities affiliated at period end.       

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Note 6: Regulatory matters and litigation

In late 2003 and 2004, Putnam Management settled charges brought by the Securities and Exchange Commission (the “SEC”) and the Massachusetts Securities Division in connection with excessive short-term trading in Putnam funds. Distribution of payments from Putnam Management to certain open-end Putnam funds and their shareholders is expected to be completed in the next several months. These allegations and related matters have served as the general basis for certain lawsuits, including purported class action lawsuits against Putnam Management and, in a limited number of cases, some Putnam funds. Putnam Management believes that these lawsuits will have no material adverse effect on the funds or on Putnam Management’s ability to provide investment management services. In addition, Putnam Management has agreed to bear any costs incurred by the Putnam funds as a result of these matters.

Note 7: New accounting pronouncements

In June 2006, the Financial Accounting Standards Board (“FASB”) issued Interpretation No. 48, Accounting for Uncertainty in Income Taxes (the “Interpretation”). The Interpretation prescribes a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken by a filer in the filer’s tax return. Upon adoption, the Interpretation did not have a material effect on the fund’s financial statements. However, the conclusions regarding the Interpretation may be subject to review and adjustment at a later date based on factors including, but not limited to, further implementation guidance expected from the FASB, and on-going analysis of tax laws, regulations and interpretations thereof. Each of the funds’ federal tax returns for the prior three fiscal years remain subject to the examination by the Internal Revenue Service.

In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, Fair Value Measurements (the “Standard”). The Standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. The Standard applies to fair value measurements already required or permitted by existing standards. The Standard is effective for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. Putnam Management does not believe the adoption of the Standard will impact the amounts reported in the financial statements; however, additional disclosures will be required about the inputs used to develop the measurements of fair value.

In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (“SFAS 161”) —an amendment of FASB Statement No. 133 (“SFAS 133”), was issued and is effective for fiscal years beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about how and why an entity uses derivative instruments and how derivative instruments affect an entity’s financial position. Putnam Management is currently evaluating the impact the adoption of SFAS 161 will have on the fund’s financial statement disclosures.

79

Federal tax information and brokerage commissions (unaudited)

Federal tax information

Each fund has designated the following percentages of that fund’s distributions from net investment income as qualifying for the dividends received deduction for corporations:

Fund Name  Qualifying % 
RetirementReady   
2050 Fund  6.91% 
2045 Fund  6.98 
2040 Fund  8.50 
2035 Fund  8.90 
2030 Fund  8.87 
2025 Fund  8.50 
2020 Fund  9.30 
2015 Fund  8.62 
2010 Fund  7.03 
Maturity Fund  9.17 

For its tax year ended July 31, 2008, each fund hereby designates the following amounts or the maximum amount allowable, of its taxable ordinary income distributions as qualified dividends taxed at the individual net capital gain rates:

Fund Name  Qualifying % 
RetirementReady   
2050 Fund  14.12% 
2045 Fund  14.48 
2040 Fund  17.34 
2035 Fund  17.74 
2030 Fund  17.99 
2025 Fund  16.33 
2020 Fund  15.06 
2015 Fund  11.78 
2010 Fund  8.96 
Maturity Fund  9.91 

Pursuant to Section 852 of the Internal Revenue Code, as amended, each fund hereby designates the following amounts as long-term capital gain, for its taxable year ended July 31, 2008:

Fund Name  Amount 
RetirementReady   
2050 Fund  $ 330,499 
2045 Fund  1,368,644 
2040 Fund  2,539,747 
2035 Fund  4,299,880 
2030 Fund  5,837,710 
2025 Fund  6,766,894 
2020 Fund  5,614,196 
2015 Fund  3,608,867 
2010 Fund  376,447 
Maturity Fund  48,786 

The Form 1099 you receive in January 2009 will show the tax status of all distributions paid to your account in calendar 2008.

Brokerage commissions

Brokerage commissions are paid to firms that execute trades on behalf of your fund. When choosing these firms, Putnam is required by law to seek the best execution of the trades, taking all relevant factors into consideration, including expected quality of execution and commission rate. The RetirementReady Funds, however, invest in shares of other Putnam mutual funds, rather than in stocks and bonds. For that reason, the funds do not incur brokerage charges.

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About the Trustees

Jameson A. Baxter
Trustee since 1994 and Vice Chairman since 2005

Ms. Baxter is the President of Baxter Associates, Inc., a private investment firm.

Ms. Baxter serves as a Director of ASHTA Chemicals, Inc., and the Mutual Fund Directors Forum.

Until 2007, she was a Director of Banta Corporation (a printing and supply chain management company), Ryerson, Inc. (a metals service corporation), and Advocate Health Care. Until 2004, she was a Director of BoardSource (formerly the National Center for Nonprofit Boards); and until 2002, she was a Director of Intermatic Corporation (a manufacturer of energy control products). She is Chairman Emeritus of the Board of Trustees, Mount Holyoke College, having served as Chairman for five years.

Ms. Baxter has held various positions in investment banking and corporate finance, including Vice President of and Consultant to First Boston Corporation and Vice President and Principal of the Regency Group. She is a graduate of Mount Holyoke College.

Charles B. Curtis
Trustee since 2001

Mr. Curtis is President and Chief Operating Officer of the Nuclear Threat Initiative (a private foundation dealing with national security issues), and serves as Senior Advisor to the United Nations Foundation.

Mr. Curtis is a member of the Council on Foreign Relations and serves as Director of Edison International and Southern California Edison. Until 2006, Mr. Curtis served as a member of the Trustee Advisory Council of the Applied Physics Laboratory, Johns Hopkins University. Until 2003, Mr. Curtis was a member of the Electric Power Research Institute Advisory Council and the University of Chicago Board of Governors for Argonne National Laboratory. Prior to 2002, Mr. Curtis was a member of the Board of Directors of the Gas Technology Institute and the Board of Directors of the Environment and Natural Resources Program Steering Committee, John F. Kennedy School of Government,Harvard University. Until 2001, Mr. Curtis was a member of the Department of Defense Policy Board and Director of EG&G Technical Services, Inc. (a fossil energy research and development support company).

From August 1997 to December 1999, Mr. Curtis was a Partner at Hogan & Hartson LLP, an international law firm headquartered in Washington, D.C. Prior to May 1997, Mr. Curtis was Deputy Secretary of Energy and Under Secretary of the U.S. Department of Energy. He served as Chairman of the Federal Energy Regulatory Commission from 1977 to 1981 and has held positions on the staff of the U.S. House of Representatives, the U.S. Treasury Department, and the SEC.

Robert J. Darretta
Trustee since 2007

Mr. Darretta serves as Director of United Health Group, a diversified health-care company.

Until April 2007, Mr. Darretta was Vice Chairman of the Board of Directors of Johnson & Johnson, one of the world’s largest and most broadly based health-care companies. Prior to 2007, he had respon sibility for Johnson & Johnson’s finance, investor relations, information technology, and procurement function. He served as Johnson & Johnson Chief Financial Offi cer for a decade, prior to which he spent two years as Treasurer of the corporation and over ten years leading various Johnson & Johnson operating companies.

Mr. Darretta received a B.S. in Economics from Villanova University.

Myra R. Drucker
Trustee since 2004

Ms. Drucker is Chair of the Board of Trustees of Commonfund (a not-for-profit firm specializing in managing assets for educational endowments and foundations), Vice Chair of the Board of Trustees of Sarah Lawrence College, and a member of the Investment Committee of the Kresge Foundation (a charitable trust). She is also a Director of New York Stock Exchange LLC (a wholly-owned subsidiary of NYSE Euronext), and a Director of Interactive Data Corporation (a provider of financial market data and analytics to financial institutions and investors).

Ms. Drucker is an ex-officio member of the New York Stock Exchange (NYSE) Pension Managers Advisory Committee, having served as Chair for seven years. She serves as an advisor to RCM Capital Management (an investment management firm) and to the Employee Benefits Investment Committee of The Boeing Company (an aerospace firm).

From November 2001 until August 2004, Ms. Drucker was Managing Director and a member of the Board of Directors of General Motors Asset Management and Chief Investment Officer of General Motors Trust Bank. From December 1992 to November 2001, Ms. Drucker served as Chief Investment Officer of Xerox Corporation (a document company). Prior to December 1992, Ms. Drucker was Staff Vice President and Director of Trust Investments for International Paper (a paper and packaging company).

Ms. Drucker received a B.A. degree in Literature and Psychology from Sarah Lawrence College and pursued graduate studies in economics, statistics, and portfolio theory at Temple University.

Charles E. Haldeman, Jr.*
Trustee since 2004 and
President of the Funds since 2007

Mr. Haldeman is Chairman of Putnam Investment Management, LLC and President of the Putnam Funds. Prior to July 2008, he was President and Chief Executive Officer of Putnam, LLC (“Putnam Investments”). Prior to November 2003, Mr. Haldeman served as Co-Head of Putnam Investments’ Investment Division.

81

Prior to joining Putnam Investments in 2002, Mr. Haldeman held executive positions in the investment management industry. He previously served as Chief Executive Officer of Delaware Investments and President and Chief Operating Officer of United Asset Management. Mr. Haldeman was also a Partner and Director of Cooke & Bieler, Inc. (an investment management firm).

Mr. Haldeman currently serves on the Board of Governors of the Investment Company Institute and as Chair of the Board of Trustees of Dartmouth College. He also serves on the Partners HealthCare Investment Committee, the Tuck School of Business Overseers, and the Harvard Business School Board of Dean’s Advisors. He is a graduate of Dartmouth College, Harvard Law School, and Harvard Business School. Mr. Haldeman is also a Chartered Financial Analyst (CFA) charterholder.

John A. Hill
Trustee since 1985 and Chairman since 2000

John A. Hill is founder and Vice-Chairman of First Reserve Corporation, the leading private equity buyout firm specializing in the worldwide energy industry, with offices in Greenwich, Connecticut; Houston, Texas; London, England; and Shanghai, China. The firm’s investments on behalf of some of the nation’s largest pension and endowment funds are currently concentrated in 26 companies with annual revenues in excess of $13 billion, which employ over 100,000 people in 23 countries.

Mr. Hill is Chairman of the Board of Trustees of the Putnam Mutual Funds, a Director of Devon Energy Corporation and various private companies owned by First Reserve, and serves as a Trustee of Sarah Lawrence College where he chairs the Investment Committee.

Prior to forming First Reserve in 1983, Mr. Hill served as President of F. Eberstadt and Company, an investment banking and investment management firm. Between 1969 and 1976, Mr. Hill held various senior positions in Washington, D.C. with the federal government, including Deputy Associate

Director of the Office of Management and Budget and Deputy Administrator of the Federal Energy Administration during the Ford Administration.

Mr. Hill was born and raised in Midland, Texas; received his B.A. in Economics from Southern Methodist University; and pursued graduate studies as a Woodrow Wilson Fellow.

Paul L. Joskow
Trustee since 1997

Dr. Joskow is an economist and President of the Alfred P. Sloan Foundation (a philanthropic institution focused primarily on research and education on issues related to science, technology, and economic performance). He is on leave from his position as the Elizabeth and James Killian Professor of Economics and Management at the Massachusetts Institute of Technology (MIT), where he has been on the faculty since 1972. Dr. Joskow was the Director of the Center for Energy and Environmental Policy Research at MIT from 1999 through 2007.

Dr. Joskow serves as a Trustee of Yale University, as a Director of TransCanada Corporation (an energy company focused on natural gas transmission and power services) and of Exelon Corporation (an energy company focused on power services), and as a member of the Board of Overseers of the Boston Symphony Orchestra. Prior to August 2007, he served as a Director of National Grid (a UK-based holding company with interests in electric and gas transmission and distribution and telecommunications infrastructure). Prior to July 2006, he served as President of the Yale University Council and continues to serve as a member of the Council. Prior to February 2005, he served on the board of the Whitehead Institute for Biomedical Research (a non-profit research institution). Prior to February 2002, he was a Director of State Farm Indemnity Company (an automobile insurance company), and prior to March 2000, he was a Director of New England Electric System (a public utility holding company).

Dr. Joskow has published six books and numerous articles on industrial organization, government regulation of industry, and competition policy. He is active in industry restructuring, environmental, energy, competition, and privatization policies —serving as an advisor to governments and corporations worldwide. Dr. Joskow holds a Ph.D. and MPhil from Yale University and a B.A. from Cornell University.

Elizabeth T. Kennan
Trustee since 1992

Dr. Kennan is a Partner of Cambus-Kenneth Farm (thoroughbred horse and cattle breeding). She is President Emeritus of Mount Holyoke College.

Dr. Kennan served as Chairman and is now Lead Director of Northeast Utilities. She is a Trustee of the National Trust for Historic Preservation, of Centre College, and of Midway College in Midway, Kentucky. Until 2006, she was a member of The Trustees of Reservations. Prior to 2001, Dr. Kennan served on the oversight committee of the Folger Shakespeare Library. Prior to June 2005, she was a Director of Talbots, Inc., and she has served as Director on a number of other boards, including Bell Atlantic, Chastain Real Estate, Shawmut Bank, Berkshire Life Insurance, and Kentucky Home Life Insurance. Dr. Kennan has also served as President of Five Colleges Incorporated and as a Trustee of Notre Dame University, and is active in various educational and civic associations.

As a member of the faculty of Catholic University for twelve years, until 1978, Dr. Kennan directed the post-doctoral program in Patristic and Medieval Studies, taught history, and published numerous articles and two books. Dr. Kennan holds a Ph.D. from the University of Washington in Seattle, an M.S. from St. Hilda’s College at Oxford University, and an A.B. from Mount Holyoke College. She holds several honorary doctorates.

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Kenneth R. Leibler
Trustee since 2006

Mr. Leibler is a Founding Partner and former Chairman of the Boston Options Exchange, an electronic marketplace for the trading of derivative securities.

Mr. Leibler currently serves as a Trustee of Beth Israel Deaconess Hospital in Boston. He is also Lead Director of Ruder Finn Group, a global communications and advertising firm, and a Director of Northeast Utilities, which operates New England’s largest energy delivery system. Prior to December 2006, he served as a Director of the Optimum Funds group. Prior to October 2006, he served as a Director of ISO New England, the organization responsible for the operation of the electric generation system in the New England states. Prior to 2000, Mr. Leibler was a Director of the Investment Company Institute in Washington, D.C.

Prior to January 2005, Mr. Leibler served as Chairman and Chief Executive Officerof the Boston Stock Exchange. Prior to January 2000, he served as President and Chief Executive Officer of Liberty Financial Companies, a publicly traded diversified asset management organization. Prior to June 1990, Mr. Leibler served as President and Chief Operating Officer of the American Stock Exchange (AMEX), and at the time was the youngest person in AMEX history to hold the title of President. Prior to serving as AMEX President, he held the position of Chief Financial Officer, and headed its management and marketing operations. Mr. Leibler graduated magna cum laude with a degree in Economics from Syracuse University, where he was elected Phi Beta Kappa.

Robert E. Patterson
Trustee since 1984

Mr. Patterson is Senior Partner of Cabot Properties, LP and Chairman of Cabot Properties, Inc. (a private equity firm investing in commercial real estate).

Mr. Patterson serves as Chairman Emeritus and Trustee of the Joslin Diabetes Center. Prior to June 2003, he was a Trustee of Sea Education Association. Prior to December 2001, Mr. Patterson was President and Trustee of Cabot Industrial Trust (a publicly traded real estate investment trust). Prior to February 1998, he was Executive Vice President and Director of Acquisitions of Cabot Partners Limited Partnership (a registered investment adviser involved in institutional real estate investments). Prior to 1990, he served as Executive Vice President of Cabot, Cabot & Forbes Realty Advisors, Inc. (the predecessor company of Cabot Partners).

Mr. Patterson practiced law and held various positions in state government, and was the founding Executive Director of the Massachusetts Industrial Finance Agency. Mr. Patterson is a graduate of Harvard College and Harvard Law School.

George Putnam, III
Trustee since 1984

Mr. Putnam is Chairman of New Generation Research, Inc. (a publisher of financial advisory and other research services), and President of New Generation Advisers, Inc. (a registered investment adviser to private funds). Mr. Putnam founded the New Generation companies in 1986.

Mr. Putnam is a Director of The Boston Family Office, LLC (a registered investment adviser). He is a Trustee of St. Mark’s School and a Trustee of the Marine Biological Laboratory in Woods Hole, Massachusetts. Until 2006, he was a Trustee of Shore Country Day School, and until 2002, was a Trustee of the Sea Education Association.

Mr. Putnam previously worked as an attorney with the law firm of Dechert LLP (formerly known as Dechert Price & Rhoads) in Philadelphia. He is a graduate of Harvard College, Harvard Business School, and Harvard Law School.

Richard B.Worley
Trustee since 2004

Mr. Worley is Managing Partner of Permit Capital LLC, an investment management firm.

Mr. Worley serves as a Trustee of the University of Pennsylvania Medical Center, The Robert Wood Johnson Foundation (a philanthropic organization devoted to health-care issues), and the National Constitution Center. He is also a Director of The Colonial Williamsburg Foundation (a historical preservation organization), and the Philadelphia Orchestra Association. Mr. Worley also serves on the investment committees of Mount Holyoke College and World Wildlife Fund (a wildlife conservation organization).

Prior to joining Permit Capital LLC in 2002, Mr. Worley served as President, Chief Executive Officer, and Chief Investment Officer of Morgan Stanley Dean Witter Investment Management and as a Managing Director of Morgan Stanley, a financial services firm. Mr. Worley also was the Chairman of Miller Anderson & Sherrerd, an investment management firm that was acquired by Morgan Stanley in 1996.

Mr. Worley holds a B.S. degree from the University of Tennessee and pursued graduate studies in economics at the University of Texas.

The address of each Trustee is One Post Office Square, Boston, MA 02109.

As of July 31, 2008, there were 99 Putnam funds. All Trustees serve as Trustees of all Putnam funds.

Each Trustee serves for an indefinite term, until his or her resignation, retirement at age 72, death, or removal.

* Trustee who is an “interested person” (as defined in the Investment Company Act of 1940) of the fund, Putnam Management, and/or Putnam Retail Management. Mr. Haldeman is the President of your fund and each of the other Putnam funds and Chairman of Putnam Investment Management, LLC, and prior to July 2008 was President and Chief Executive Officer of Putnam Investments.

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Officers

In addition to Charles E. Haldeman, Jr., the other officers of the fund are shown below:

Charles E. Porter (Born 1938)  James P. Pappas (Born 1953) Wanda M. McManus (Born 1947) 
Executive Vice President, Principal Executive  Vice President Vice President, Senior Associate Treasurer 
Officer, Associate Treasurer, and  Since 2004 and Assistant Clerk 
Compliance Liaison  Managing Director, Putnam Investments and Since 2005 
Since 1989  Putnam Management. During 2002, Chief  
  Operating Officer, Atalanta/Sosnoff Nancy E. Florek (Born 1957) 
Jonathan S. Horwitz (Born 1955)   Management Corporation Vice President, Assistant Clerk, Assistant  
Senior Vice President and Treasurer  Treasurer and Proxy Manager  
Since 2004  Francis J. McNamara, III (Born 1955) Since 2005   
Prior to 2004, Managing Director,  Vice President and Chief Legal Officer  
Putnam Investments    Since 2004
  Senior Managing Director, Putnam  
Steven D. Krichmar (Born 1958)  Investments, Putnam Management  
Vice President and Principal Financial Officer  and Putnam Retail Management. Prior  
Since 2002   to 2004, General Counsel, State Street  
Senior Managing Director,  Research & Management Company  
Putnam Investments     
  Robert R. Leveille (Born 1969)  
Janet C. Smith (Born 1965)  Vice President and Chief Compliance Officer  
Vice President, Principal Accounting Officer  Since 2007  
and Assistant Treasurer   Managing Director, Putnam Investments,  
Since 2007    Putnam Management, and Putnam Retail  
Managing Director, Putnam Investments and Management. Prior to 2004, member of  
Putnam Management     Bell Boyd & Lloyd LLC. Prior to 2003,  
  Vice President and Senior Counsel,  
Susan G. Malloy (Born 1957)  

Liberty Funds Group LLC

  
Vice President and Assistant Treasurer    
Since 2007   Mark C. Trenchard (Born 1962)  
Managing Director, Putnam Investments    Vice President and BSA Compliance Officer  
  Since 2002  
Beth S. Mazor (Born 1958) Managing Director, Putnam Investments  
Vice President   
Since 2002 Judith Cohen (Born 1945)  
Managing Director, Putnam Investments  Vice President, Clerk and Assistant Treasurer  
  Since 1993  
   
   
   
   
   
 
   
   
 
   
   
 
 
   

The address of each Officer is One Post Office Square, Boston, MA 02109.

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Fund information

Founded over 70 years ago, Putnam Investments was built around the concept that a balance between risk and reward is the hallmark of a well-rounded financial program. We manage nearly 100 mutual funds in growth, value, blend, fixed income, and international.

Investment Manager  Officers  Judith Cohen 
Putnam Investment  Charles E. Haldeman, Jr.  Vice President, Clerk and Assistant Treasurer 
Management, LLC  President   
One Post Office Square    Wanda M. McManus 
Boston, MA 02109    Charles E. Porter   Vice President, Senior Associate Treasurer    
  Executive Vice President, Principal    and Assistant Clerk 
Marketing Services Executive Officer, Associate Treasurer    
Putnam Retail Management   and Compliance Liaison  Nancy E. Florek 
One Post Office Square     Vice President, Assistant Clerk, Assistant 
Boston, MA 02109   Jonathan S. Horwitz   Treasurer and Proxy Manager  
  Senior Vice President and Treasurer     
Custodian        
State Street Bank and Trust Company   Steven D. Krichmar    
  Vice President and Principal Financial Officer    
Legal Counsel     
Ropes & Gray LLP    Janet C. Smith   
Vice President, Principal Accounting Officer     
Independent Registered Public and Assistant Treasurer    
Accounting Firm      
PricewaterhouseCoopers LLP  Susan G. Malloy     
Vice President and Assistant Treasurer     
Trustees        
John A. Hill, Chairman   Beth S. Mazor    
Jameson A. Baxter, Vice Chairman Vice President   
Charles B. Curtis          
Robert J. Darretta     James P. Pappas     
Myra R. Drucker   Vice President   
Charles E. Haldeman, Jr.     
Paul L. Joskow   Francis J. McNamara, III  
Elizabeth T. Kennan   Vice President and Chief Legal Officer    
Kenneth R. Leibler       
Robert E. Patterson   Robert R. Leveille   
George Putnam, III    Vice President and Chief Compliance Officer  
Richard B. Worley    
Mark C. Trenchard   
    Vice President and BSA Compliance Officer    
   
     

This report is for the information of shareholders of Putnam RetirementReady Funds. It may also be used as sales literature when preceded or accompanied by the current prospectus, the most recent copy of Putnam’s Quarterly Performance Summary, and Putnam’s Quarterly Ranking Summary. For more recent performance, please visit www.putnam.com. Investors should carefully consider the investment objective, risks, charges, and expenses of a fund, which are described in its prospectus. For this and other information or to request a prospectus, call 1-800-225-1581 toll free. Please read the prospectus carefully before investing. The fund’s Statement of Additional Information contains additional information about the Trustees and is available without charge upon request by calling 1-800-225-1581.


Item 2. Code of Ethics:

(a) The fund’s principal executive, financial and accounting officers are employees of Putnam Investment Management, LLC, the Fund's investment manager. As such they are subject to a comprehensive Code of Ethics adopted and administered by Putnam Investments which is designed to protect the interests of the firm and its clients. The Fund has adopted a Code of Ethics which incorporates the Code of Ethics of Putnam Investments with respect to all of its officers and Trustees who are employees of Putnam Investment Management, LLC. For this reason, the Fund has not adopted a separate code of ethics governing its principal executive, financial and accounting officers.

(c) In May 2008, the Code of Ethics of Putnam Investment Management, LLC was updated in its entirety to include the amendments adopted in August 2007 as well as a several additional technical, administrative and non-substantive changes.

Item 3. Audit Committee Financial Expert:

The Funds' Audit and Compliance Committee is comprised solely of Trustees who are "independent" (as such term has been defined by the Securities and Exchange Commission ("SEC") in regulations implementing Section 407 of the Sarbanes-Oxley Act (the "Regulations")). The Trustees believe that each of the members of the Audit and Compliance Committee also possess a combination of knowledge and experience with respect to financial accounting matters, as well as other attributes, that qualify them for service on the Committee. In addition, the Trustees have determined that each of Mr. Patterson, Mr. Leibler, Mr. Hill and Mr. Darretta meets the financial literacy requirements of the New York Stock Exchange's rules and qualifies as an "audit committee financial expert" (as such term has been defined by the Regulations) based on their review of his pertinent experience and education. Certain other Trustees, although not on the Audit and Compliance Committee, would also qualify as "audit committee financial experts." The SEC has stated that the designation or identification of a person as an audit committee financial expert pursuant to this Item 3 of Form N-CSR does not impose on such person any duties, obligations or liability that are greater than the duties, obligations and liability imposed on such person as a member of the Audit and Compliance Committee and the Board of Trustees in the absence of such designation or identification.

Item 4. Principal Accountant Fees and Services:

The following table presents fees billed in each of the last two fiscal years for services rendered to the fund by the fund’s independent auditor:

Fiscal    Audit-     
year  Audit  Related  Tax  All Other 
ended  Fees  Fees  Fees  Fees 
  
July 31, 2008  $162,647  $--  $40,000  $- 
 
July 31, 2007  $130,587  $-  $28,266  $- 

For the fiscal years ended July 31, 2008 and July 31, 2007, the fund’s independent auditor billed aggregate non-audit fees in the amounts of $118,239 and $143,482 respectively, to the fund, Putnam Management and any entity controlling, controlled by or under common control with Putnam Management that provides ongoing services to the fund.

Audit Fees represent fees billed for the fund's last two fiscal years relating to the audit and review of the financial statements included in annual reports and registration statements, and other

services that are normally provided in connection with statutory and regulatory filings or engagements.

Audit-Related Fees represent fees billed in the fund’s last two fiscal years for services traditionally performed by the fund’s auditor, including accounting consultation for proposed transactions or concerning financial accounting and reporting standards and other audit or attest services not required by statute or regulation.

Tax Fees represent fees billed in the fund’s last two fiscal years for tax compliance, tax planning and tax advice services. Tax planning and tax advice services include assistance with tax audits, employee benefit plans and requests for rulings or technical advice from taxing authorities.

All Other Fees represent fees billed for services relating to an analysis of recordkeeping fees.

Pre-Approval Policies of the Audit and Compliance Committee. The Audit and Compliance Committee of the Putnam funds has determined that, as a matter of policy, all work performed for the funds by the funds’ independent auditors will be pre-approved by the Committee itself and thus will generally not be subject to pre-approval procedures.

The Audit and Compliance Committee also has adopted a policy to pre-approve the engagement by Putnam Management and certain of its affiliates of the funds’ independent auditors, even in circumstances where pre-approval is not required by applicable law. Any such requests by Putnam Management or certain of its affiliates are typically submitted in writing to the Committee and explain, among other things, the nature of the proposed engagement, the estimated fees, and why this work should be performed by that particular audit firm as opposed to another one. In reviewing such requests, the Committee considers, among other things, whether the provision of such services by the audit firm are compatible with the independence of the audit firm.

The following table presents fees billed by the fund’s independent auditor for services required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.

Fiscal  Audit-    All  Total 
year  Related  Tax  Other  Non-Audit 
ended  Fees  Fees  Fees  Fees 
 
July 31, 2008  $ -  $ 15,000  $ -  $ - 
 
July 31, 2007  $ -  $ 26,129  $ -  $ - 
 

Item 5. Audit Committee of Listed Registrants

Not applicable

Item 6. Schedule of Investments:

The registrant’s schedule of investments in unaffiliated issuers is included in the report to shareholders in Item 1 above.

Item 7. Disclosure of Proxy Voting Policies and Procedures For Closed-End Management Investment Companies:

Not applicable

Item 8. Portfolio Managers of Closed-End Investment Companies

Not Applicable

Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers:

Not applicable

Item 10. Submission of Matters to a Vote of Security Holders:

Not applicable

Item 11. Controls and Procedures:

(a) The registrant's principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are generally effective to provide reasonable assurance that information required to be disclosed by the registrant in this report is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms.

(b) Changes in internal control over financial reporting: Not applicable

Item 12. Exhibits:

(a)(1) The Code of Ethics of The Putnam Funds, which incorporates the Code of Ethics of Putnam Investments, is filed herewith.

(a)(2) Separate certifications for the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are filed herewith.

(b) The certifications required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended, are filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Putnam RetirementReady Funds

By (Signature and Title):

/s/Janet C. Smith
Janet C. Smith
Principal Accounting Officer

Date: September 25, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title):

/s/Charles E. Porter
Charles E. Porter
Principal Executive Officer

Date: September 25, 2008

By (Signature and Title):

/s/Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer

Date: September 25, 2008