13th edition of Guide explores key
themes that will impact retirement planning this year, including
Social Security and guaranteed income
NEW
YORK, March 4, 2025 /PRNewswire/ -- J.P. Morgan
Asset Management today released the 13th edition of its annual
Guide to Retirement. This year's Guide offers a fresh
perspective on the evolving landscape of retirement planning,
focusing on key themes such as Social Security, guaranteed income,
and the importance of long-term investment strategies. It also
includes a new section on Social Security/Health, highlighting the
important role these topics play in shaping retirement planning
discussions. By utilizing anonymized household data and proprietary
research, the Guide provides actionable insights to help advisors,
consultants, defined contribution plan participants and sponsors
navigate unforeseen retirement roadblocks and improve retirement
outcomes.
"Retirement means different things to different people, and
planning for it involves a multitude of decisions which can feel
daunting or overwhelming. However, the core principles of a secure
retirement are approachable and within reach. It's more important
than ever to empower individuals with the tools and knowledge they
need to secure their retirement future," said Michael Conrath, Chief Retirement Strategist at
J.P. Morgan Asset Management. "The 2025 Guide to Retirement offers
a comprehensive look at how retirement planning is evolving. It
enables advisors and their clients to make informed decisions that
align with their long-term goals, giving them the confidence to
achieve their saving and spending targets."
Sharon Carson, J.P. Morgan Asset
Management Retirement Strategist, added, "The ability to simplify
the answers to the most common retirement planning questions is
crucial in today's rapidly evolving financial landscape. With the
Guide to Retirement, our goal is to shed light on the most salient
retirement issues facing U.S. retirees, such as why it is important
to invest over the long-term and what they should consider
regarding their Social Security benefits. Our proprietary research
can help individuals at all life stages enhance their retirement
plans and financial security."
Below are four key themes featured in the 2025 Guide to
Retirement:
Theme #1 - Don't plan to be average – know your savings
goal. It is important to plan for a longer life expectancy,
which could mean 35 years in retirement. More than half of female
non-smokers in excellent health will pass age 90, and 4 in 10
healthy non-smoking men are expected to do the same. Given this,
understanding your savings target and investing a portion of your
retirement portfolio for growth is important to maintain purchasing
power over time.
Theme #2 - Savings alone won't fund retirement – invest for
the long-term. Emotional reactions to market declines can harm
portfolios since the best days are likely to occur close to the
worst days. Missing the 10 best days of the market over the past 20
years would have reduced a portfolio's annualized return by almost
50%, missing the top 40 days would have a negative annualized
return on the original investment. Staying invested with a
diversified long-term investment strategy tends to produce a better
retirement outcome.
Theme #3 - Know what to expect from Social Security. Our
research indicates that waiting until age 70 to claim Social
Security can boost benefit checks by 24% compared to claiming at
full retirement age for those born in 1960 or later. On the other
hand, starting benefits early at age 62 means receiving only 70% of
the full retirement amount, resulting in a permanent reduction.
It's crucial to understand the benefits and tradeoffs of claiming
decisions.
Theme #4 - Adopt a retirement income plan that gives you
confidence to spend. More guaranteed income may equal less fear
of spending. A typical household might fund their retirement from a
mix of investment accounts plus guaranteed income sources. Our
research shows that having more guaranteed income may result in
increased spending in retirement, for households with similar
levels of total retirement wealth. This may be because people feel
comfortable spending Social Security pensions and annuities while
they are more reluctant to spend the capital of their
portfolio.
J.P. Morgan Asset Management helps financial advisors serve
their individual clients, DC plan sponsors and plan participants by
offering industry-leading insights such as the Guide to
Retirement, Guide to the Markets, Long-Term Capital Market
Assumptions and spending and saving research in collaboration
with the Employee Benefit Research Institute (EBRI). The firm also
provides a one-stop-shop of digital tools and
resources including Target Date Compass® and Core Menu
EvaluatorSM.
To view the full 2025 Guide to Retirement,
click here.
About J.P. Morgan Asset Management
J.P. Morgan Asset Management, with assets under management
of $3.6 trillion (as of 12/31/2024), is a global leader
in investment management. J.P. Morgan Asset Management's clients
include institutions, retail investors and high net worth
individuals in every major market throughout the world. J.P. Morgan
Asset Management offers global investment management in equities,
fixed income, real estate, hedge funds, private equity and
liquidity. For more information,
visit: www.jpmorgan.com/am
About JPMorgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading financial
services firm based in the United States
of America ("U.S."), with operations worldwide.
JPMorganChase had $4.0 trillion in
assets and $345 billion in
stockholders' equity as of 12/31/2024. The Firm is a leader in
investment banking, financial services for consumers and small
businesses, commercial banking, financial transaction processing
and asset management. Under the J.P. Morgan and Chase brands, the
Firm serves millions of customers in the U.S., and many of the
world's most prominent corporate, institutional and government
clients globally. Information about JPMorgan Chase & Co. is
available at www.jpmorganchase.com.
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SOURCE J.P. Morgan Asset Management
