12th edition of Guide examines key
issues impacting retirement planning in 2024 including taxes,
Social Security, and health care
NEW
YORK, March 6, 2024 /PRNewswire/ -- J.P. Morgan
Asset Management today released the 12th edition of its
annual Guide to Retirement, analyzing the most significant
issues impacting retirement to help advisors and their clients, and
defined contribution plan participants make informed planning
decisions. This year's Guide leverages anonymized household data,
and proprietary research that showcases real-life spending and
saving patterns to help prepare for unforeseen spending shocks, and
improve retirement outcomes.
"Saving for retirement continues to be challenging for many
individuals, especially when faced with multiple goals and
unexpected spending shocks. However, we feel optimistic for the
future of retirement security as plan sponsors and legislators
emphasize the need for broader access to retirement savings," said
Michael Conrath, Chief Retirement
Strategist, J.P. Morgan Asset Management. "Our 2024 Guide to
Retirement has been designed to help advisors provide long-term
investing strategies to best position clients to reach their
retirement goals and plan strategically for their future."
"Our clients trust and rely on the insights in the Guide to
Retirement to turn complexity into clarity for the individuals and
plan sponsors they serve," said Steve
Rubino, Head of Retirement, J.P. Morgan Asset Management.
"We're honored to put our deep understanding of people, markets,
and the U.S. retirement system to work for millions of retirement
savers across the country."
Below is an overview of four key retirement themes featured in
the 2024 Guide to Retirement:
1. Preparing for unexpected
spending shocks
Spending and income shocks continue to be leading causes for
401(k) plan loans and withdrawals due to a lack of emergency
savings, and effectively decrease the level of retirement
readiness. Nine in 10 households experience spending spikes greater
than their income, and one in three households cannot fund spikes
with their income and cash reserves. This has led to households
increasing their amount of credit card debt, taking out a loan from
their 401(k) plan, or decreasing the amount of contributions they
are making to their 401(k) plan.
2. SECURE 2.0: focusing on
building a strong financial foundation
This year, we will see provisions from SECURE 2.0 continue to
roll out. This includes the addition of emergency savings accounts
in DC plans to help participants build a strong financial
foundation, and ease the burden of student loan debt through
employer match programs.
3. Keeping in mind tax
implications for retirement savings
Individuals should consider taking advantage of the different
types of tax-advantaged savings accounts. Diversifying the sources
of retirement income may prove advantageous due to differing
circumstances. With tax rates scheduled to increase once the Tax
Cuts and Jobs Act sunsets after 2025, it's important for investors
to consider their future tax situation. It may be beneficial to
maintain a strategic mix of tax-deferred, tax-free and taxable
accounts for greater flexibility based on circumstance.
4. Taking a long-term view on
markets tends to pay off
Missing the 10 best days over the past two decades would have
cut retirement account values by 50%. Staying invested with a
diversified long-term investment strategy tends lead to a better
retirement outcome as some of the market's best days occur very
close to the worst days.
J.P. Morgan Asset Management helps financial advisors serve
their individual clients and DC 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®, which helps with
target date fund evaluation.
To view the full 2024 Guide to Retirement, click here.
About J.P. Morgan Asset Management
J.P. Morgan Asset Management, with assets under management
of $3.1 trillion (as of 12/31/2023), 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: www.jpmorganassetmanagement.com. J.P.
Morgan Asset Management is the marketing name for the asset
management businesses of JPMorgan Chase & Co., and its
affiliates worldwide.
JPMorgan Chase & Co. (NYSE: JPM) is a leading
financial services firm based in the United States of America ("U.S."), with
operations worldwide. JPMorgan Chase had $3.9 trillion in
assets and $328 billion in stockholders' equity as
of December 31, 2023. 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.
Important Information
This is a general communication being provided for informational
purposes only. It is educational in nature and not designed
to be a recommendation for any specific investment product,
strategy, plan feature or other purpose. Any examples used are
generic, hypothetical and for illustration purposes only. Prior to
making any investment or financial decisions, an investor should
seek individualized advice from personal financial, legal, tax and
other professionals that take into account all of the particular
facts and circumstances of an investor's own situation.
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SOURCE J.P. Morgan Asset Management