12th edition of Guide examines key issues impacting retirement planning in 2024 including taxes, Social Security, and health care

New York, NY, March 6th, 2024 -- 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.