J.P. Morgan Asset Management Releases 2025 Guide to Retirement
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.
View original content to download multimedia:https://www.prnewswire.com/news-releases/jp-morgan-asset-management-releases-2025-guide-to-retirement-302390525.html
SOURCE J.P. Morgan Asset Management
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CBS News
27 minutes ago
- CBS News
Social Security is turning 90 — and its problems are only mounting with age
Social Security celebrates its 90th anniversary today, marking a major milestone for the program that supplies monthly benefit checks to almost 70 million senior citizens, disabled people and surviving family members of deceased workers. When President Franklin D. Roosevelt signed the Social Security Act into law on Aug. 14, 1935, he guaranteed for the first time that workers could rely on continuing income in retirement after they turned 65. As it enters its 10th decade, the program is only growing in importance amid an aging population, with a record number of Americans now collecting benefits. In the next 10 years, Social Security is expected to swell by an additional 12 million recipients, according to the AARP. But even as it grows in importance, the program is also facing mounting problems and growing questions over its long term viability. While many policy experts believe the program should be expanded, its outgoings now far outpace its income. Some Democratic lawmakers are also questioning the agency's ability to serve retirees after the Trump administration earlier this year made cuts to its workforce in what the Center on Budget and Policy Priorities referred to as the "largest staffing cut in SSA's history." As these challenges have mounted, faith in the program has deteriorated, even as three-quarters of Americans say they believe Social Security is "one of the most important programs" the government offers, according to a recent AARP survey. Confidence in the future of Social Security has declined by 7% in the last five years, from 43% in 2020 to 36% in 2025, it found. Asked about these concerns, the Social Security Administration pointed to a Fox News interview Thursday with its commissioner, Frank Bisignano, who said he's optimistic about the program's future and that the agency is working on improving its operations. The White House also took issue with the criticisms, with spokeswoman Liz Huston telling CBS News that the administration is improving customer service and "preventing illegal aliens from accessing benefits. "President Trump has made Social Security great again," she said. A major headwind facing Social Security may not be new, but it is fast approaching: The possible insolvency of its trust funds as the gap between its revenue and expenditure grows. For instance, in 2024, the program cost $1.49 billion, but total income was $1.42 billion, according to the 2025 Social Security Board of Trustees' report. Because of that trend — which is expected to continue given the aging population — the Social Security trust funds are forecast to be depleted by 2034, one year sooner than previously forecast, according to the most recent trustees' report. This so-called "go-broke" date has been a major source of stress for Americans who worry that there won't be enough money left by the time they reach retirement age. While some workers believe that the trust funds' insolvency means Social Security will cease making payments after that date, that is incorrect. Because the program is funded through payroll taxes, Social Security has a constant stream of income — although without the trust funds' financial cushion, the program will face a shortfall, leading to a cut in benefits. Without a fix, monthly benefits could be cut by as much as 23%, the Social Security Board of Trustees warned in its 2025 annual report. But there are options for shoring up the trust funds. For one, there's a current cap on the amount of income subject to Social Security taxes, which stands at $176,100 in 2025, meaning any earnings above that amount are exempt from the payroll tax. One remedy would be to lift the cap on payroll taxes, an option that some Democratic lawmakers prefer. Another idea, floated by some Republican lawmakers, is to raise the retirement age, which currently stands at 67 for people born after 1960. President Trump has vowed not to cut Social Security, noting in a "Meet the Press" interview in December that "we're not touching Social Security, other than we might make it more efficient." Nonetheless, concerns have mounted over the Trump administration's changes to the program, including cuts to its staff and the closure of some field offices. During a press call Wednesday organized by advocacy groups, Sen. Bernie Sanders, an independent from Vermont, claimed Mr. Trump and others in his administration are "working overtime to try to dismantle Social Security." Many Americans also say they're worried about what sort of changes the new administration could make. According to a new survey from NerdWallet, 61% of Americans believe Social Security benefits will be cut under the current administration. The White House, however, contends that Social Security has become more efficient under Mr. Trump's leadership. In a statement released Thursday, the White House claimed that the agency is handling 70% more calls than last year and that it has cut down on wait times with the help of technology. It also said the average wait times for customers at field offices have declined by 23%. "We have taken steps to reduce wait times, enhance security, and make it easier to navigate our programs," SSA commissioner Frank Bisignano wrote in an opinion piece for Fox News on Thursday. "All the while ensuring we pay benefits accurately to those who are eligible to receive them." Mr. Trump on Thursday repeated his promises to protect the program. The program will become "stronger, bigger and better" and is "gonna be around a long time" with Republicans in charge, he added in remarks from the White Associated Press contributed to this report.
UPI
an hour ago
- UPI
Trump marks Social Security Act's 90th anniversary
1 of 3 | President Donald Trump shows the signed proclamation marking the 90th anniversary of the Social Security Act in the Oval Office at the White House with Social Security Commissioner Frank Bisignano on Thursday. Photo by Will Oliver/UPI | License Photo Aug. 14 (UPI) -- Nine decades after the Social Security Act became law, President Donald Trump officially designated Thursday as the "90th Anniversary of the Social Security Act." Some 60 million U.S. seniors rely on Social Security, and payments have ended for more than 275,000 people who did not qualify for benefits, the president said during an afternoon news conference at the White House with Social Security Commissioner Frank Bisignano at his side. President Franklin Roosevelt signed the Social Security Act into law on Aug. 14, 1935, and Trump last month ended federal income taxes for most of its recipients upon signing the so-called One Big Beautiful Bill Act into law. "Social Security is rooted in a simple premise: those who gave their careers to building our nation will always have the support, stability and relief they deserve," Trump said in a proclamation shared with UPI. He called Social Security a "monumental legislative achievement that protects our seniors, uplifts our citizens and sustains the livelihoods of hardworking Americans who devoted their professions to bettering our country." On the 90th anniversary of its signing, the president said he recommits to "always defending Social Security, rewarding the men and women who make our country prosperous and taking care of our own workers, families, seniors and citizens first." Social Security is "stronger and more resilient than before" as his administration continues "rooting out all fraud, waste and abuse that rob our federal programs of resources," Trump said. Payments to deceased former recipients and those who do not legally qualify for Social Security are ending, he added. "I also am proudly restoring strong border security policies to ensure that Medicare and Social Security are preserved for the citizen who paid into them -- not abused by illegal aliens who have no right to be here," Trump said. Bisignano is a former chief operating officer at JPMorgan Chase and lauded Trump's efforts on behalf of the nation and its citizens and building what he called the "best leadership team ever assembled in the White House." He said more than 300 million Americans depend on Social Security and called it an "opportunity" to serve them by eliminating "fraud, waste and abuse" while providing "more accurate payments and better service." "This will be a digital-first agency," Bisignano said. "We have a bold goal of 200 million Americans that have a digital SSA account by the end of next year. It will happen." He said the Social Security Administration in 90 days reduced phone wait times from 40 minutes to single digits to "serve the American public." Upon being confirmed as the head of Social Security, Bisignano said he inherited $18 billion in errors within the Social Security system, and his team solved half of that amount in a month. "That's the type of swift action we can take," Bisignano said. "We are serving more people and delivering more than was ever delivered before in a manner of high quality."
CNN
2 hours ago
- CNN
Trump celebrates Social Security's 90th anniversary, claims he's strengthening it
President Donald Trump signed a proclamation Thursday honoring the 90th anniversary of the Social Security Act of 1935. Before doing so, he touted what he sees as the keeping of his promise to preserve and protect the program and to lower taxes for seniors who receive Social Security benefits. Since 1935, Social Security has become the most popular and relied-upon federal safety net program. Roughly 70 million people are currently receiving checks from Social Security, of which the vast majority are retired workers. 'Today, we celebrate that 90th anniversary of one of the most significant pieces of legislation ever signed into law, the Social Security Act of 1935. And we're going to make it stronger, bigger and better. … During the campaign, I made a (pledge) to our seniors that I would always protect Social Security, and under this administration, we're keeping that promise and strengthening Social Security for generations to come,' Trump said. But in citing what he said were his administration's successes, Trump made some false and exaggerated or unverifiable claims. Among them: Trump said that because of his mega tax-and-spending-cuts package, which he signed into law on July 4, 'I allowed no tax on Social Security for our seniors.' And the White House in a separate statement asserted that 'the vast majority of seniors receiving Social Security will no longer pay taxes on that income.' That is not the case. What his package did do was give senior citizens an additional $6,000 deduction on their federal income taxes between 2025 and 2028. Joint filers get twice that amount. But the beefed-up deduction will benefit less than half of older Americans, according to a recent analysis by the nonpartisan Urban-Brookings Tax Policy Center. Those who will benefit the most are seniors earning between roughly $80,000 and $130,000. The provision will reduce their taxes by $1,100, on average, or about 1% of their after-tax income, according to the analysis. In praising the accomplishments of Social Security Commissioner Frank Bisignano, who was standing next to the president for the proclamation signing, Trump said that while the media has reported that the program was going to 'go bust' in less than a decade, 'Not anymore it's not.' But in fact, the program still faces the prospect of not being able to pay 100% of promised benefits by 2034 in the retirement and disability programs if lawmakers don't act to address the pending shortfall, according to the latest annual report from Social Security's trustees. By that point, unless changes to the system are made, payroll tax revenue and other income sources will only be able to cover 81% of scheduled benefits. And with the estimated reduction in tax revenue from Trump's One Big Beautful Bill Act, the Committee for a Responsible Federal Budget estimates that the insolvency date will now be a year or two earlier. There are several longstanding reasons for the funding shortfall, including demographics and other spending and tax legislation passed under Republican and Democratic administrations. But, to close that gap, lawmakers (as they've known for years) will need to come up with a package of fixes that may include raising more in Social Security taxes, raising the retirement age, changing the formula to reduce the amount of initial benefits a person receives at retirement, and changing how benefits are annually adjusted for cost of living, according to CRFB. Trump praised Bisignano's efforts to improve Social Security services by asserting that the agency has shortened call wait times, reduced the disability claims backlog and promoted seniors' online account access. The commissioner, who said Thursday his aim is to make the Social Security Administration a 'digital first' agency and by the end of next year have 200 million Americans signed up to online Social Security accounts, has promised to improve customer service, particularly over the telephone and through artificial intelligence, and to push more people to the program's website. Bisignano has touted improved metrics, but the agency has reduced the number of performance indicators it posts publicly, making comparisons difficult. Based on the statistics that are currently available, they show that less than half of calls (47.1%) are answered within two hours. And the Social Security Administration also recently proposed a change that potentially could make it harder for seniors to interact with the agency – including changing how they verify their identity. In response to concerns by advocacy groups like AARP, the agency has amended its proposal. Sen. Elizabeth Warren last month asked the Social Security's inspector general to audit the agency's customer service efforts in the wake of its shedding roughly 7,000 employees and implementing a new AI tool on its national 800 number.
