Skip to main content
logo
Financial Professional Login
Welcome
Log in for exclusive access and a personalized experience
Log in Sign up
Benefits of creating a free account
  • Customize our Guide to the Markets and unlock bonus slides
  • Utilize our award-winning Portfolio Construction and Retirement Planning Tools
  • Access expert commentary from Dr. David Kelly and more...
Hello
  • My Collections
    View saved content and presentation slides
  • My Subscriptions
    Manage my subscription preferences
  • Products

    Products

    • Mutual Funds
    • ETFs
    • SmartRetirement Funds
    • 529 Portfolios
    • Alternatives
    • Separately Managed Accounts
    • Money Market Funds
    • Commingled Funds
    • Featured Funds

    Asset Class Capabilities

    • Fixed Income
    • Equity
    • Multi-Asset Solutions
    • Alternatives
    • Global Liquidity
  • Investment Strategies

    Investment Approach

    • ETF Investing
    • Model Portfolios
    • Separately Managed Accounts
    • Sustainable Investing
    • Variable Insurance Portfolios
    • Commingled Pension Trust Funds

    College Planning

    • 529 College Savings Plan
    • College Planning Essentials

    Defined Contribution

    • Target Date Strategies
    • Startup and Micro 401(k) Plan Solutions
    • Small to Mid-market 401(k) Plan Solutions
  • Insights

    Market Insights

    • Market Insights Overview
    • Guide to the Markets
    • Quarterly Economic & Market Update
    • Guide to Alternatives
    • Market Updates
    • On the Minds of Investors
    • Principles for Successful Long-Term Investing
    • Weekly Market Recap
    • ESG 7 Essentials

    Portfolio Insights

    • Portfolio Insights Overview
    • Asset Class Views
    • Equity
    • Fixed Income
    • Alternatives
    • Long-Term Capital Market Assumptions
    • Monthly Strategy Report
    • Sustainable Investing

    Retirement Insights

    • Retirement Insights Overview
    • Guide to Retirement
    • Principles for a Successful Retirement
    • Defined Contribution Insights
  • Tools

    Portfolio Construction

    • Portfolio Construction Tools Overview
    • Portfolio Analysis
    • Model Portfolios
    • Investment Comparison
    • Bond Ladder Illustrator

    Defined Contribution

    • Retirement Plan Tools & Resources Overview
    • Target Date Compass®
    • Core Menu Evaluator℠
    • Price Smart℠
  • Resources
    • Account Service Forms
    • Tax Planning
    • News & Fund Announcements
    • Insights App
    • Events
    • Library
    • Navigating market volatility
  • About Us
    • Diversity, Equity, & Inclusion
    • Sustainable Investing
    • Media Resources
  • Contact Us
  • Role
  • Country
  • Shareholder Login
    Hello
    • My Collections
      View saved content and presentation slides
    • My Subscriptions
      Manage my subscription preferences
    • Log out
    Financial Professional Login
    Welcome
    Log in for exclusive access and a personalized experience
    Log in Sign up
    Benefits of creating a free account
    • Customize our Guide to the Markets and unlock bonus slides
    • Utilize our award-winning Portfolio Construction and Retirement Planning Tools
    • Access expert commentary from Dr. David Kelly and more...
    Log out
    Search
    Search
    Menu
    You are about to leave the site Close
    J.P. Morgan Asset Management’s website and/or mobile terms, privacy and security policies don't apply to the site or app you're about to visit. Please review its terms, privacy and security policies to see how they apply to you. J.P. Morgan Asset Management isn’t responsible for (and doesn't provide) any products, services or content at this third-party site or app, except for products and services that explicitly carry the J.P. Morgan Asset Management name.
    CONTINUE Go Back
    1. Principles for a successful retirement

    • LinkedIn Twitter Facebook
    Principles for a Successful Retirement
    Principles for Retirement

    Principles for a Successful Retirement

    Achieving retirement goals takes disciplined saving, spending and investing—all of which can feel overwhelming, especially as the retirement landscape continues to change. Using slides from the award-winning Guide to Retirement we present seven essential retirement planning principles, giving investors the confidence to make more informed decisions and take positive steps toward a successful retirement.

    Download the pdf

    LEARN THE SEVEN PRINCIPLES FOR A SUCCESSFUL RETIREMENT

    1. PLAN FOR A LONG(ER) LIFE AND HOW TO DO IT WELL (PART 1)

    The longer you live, the longer your investments must last
    At least one member of a 65-year-old couple has nearly a 50/50 chance of reaching 90 and a one-in-five chance of turning 95 or older. Living longer affects key retirement decisions such as how to make the most of your time, how to invest, when to claim Social Security and whether you might need long-term care.

    Some are likely to live much longer: more than 1 in 10 women and 1 in 20 men are projected to make it to 100 or older if they self-report non-smoking and excellent health. And keep in mind that with new medical advances, family history is not destiny, so you may live longer than you think.

    Accordingly, your retirement plan should account for 35 or more years of living expenses. That means your investments need to continue growing long after you stop working to keep pace with inflation and reduce the risk of outliving your money.

    Guide to Retirement US
    Guide to Retirement US

    1. PLAN FOR A LONG(ER) LIFE AND HOW TO DO IT WELL (PART 2)

    How you spend your time will make a difference for your financial plan and for your life satisfaction.
    As social and leisure activities expand, a successful retirement depends on the “PUSHES”; having a sense of purpose, using time to participate in activities or work, socializing, healthy behaviors, experiencing gratitude, and focusing on strengths.

    2. CREATE THE PLAN YOU NEED FOR THE RETIREMENT YOU WANT

    Define your goal and craft a plan

    A retirement plan doesn’t have to be daunting—it’s important to just get started. This chart can help you determine if you are generally on the right path using the assumptions outlined on the right side of the page. The next step is to develop a plan that will take your own situation into account. Once you know where you’re heading, a comprehensive retirement plan is like any good GPS. It helps you get and stay on track to your destination—even as your life, the markets and the economy change.

    The retirement savings checkpoint tells you how much you should have invested today to be on pace toward maintaining your current lifestyle through 35 years of retirement. If you’re below your checkpoint today or have a different vision for your retirement, you may need to work with a financial professional to adjust your plan. Be sure to review and update it regularly.

    Save, save, save

    A key factor in achieving a successful retirement is to save as much as possible during your working years. Your checkpoint assumes that you save 10% of your gross annual income —nearly twice the average annual savings rate in America. The good news is that you are in complete control of how much you save, and your employer may help with a company match, so make savings a priority.

    Guide to Retirement US
    Guide to Retirement US

    3. MAKE AN INFORMED DECISION ABOUT SOCIAL SECURITY

    Social Security pays you more for waiting

    Social Security benefits are calculated based on your 35 best earning years. You are eligible for 100% of your benefit at your Full Retirement Age (FRA). Individuals born in 1960 and later have an FRA of 67. Claiming at 62 will permanently reduce your benefit by as much as 30%. Waiting to claim after FRA gives you an 8% increase each year in your benefit amount for a maximum of 124% or more.

    Times they are a-changing

    Individuals turning 62 in 2022 will have an FRA of 67 as a result of the Social Security Amendments Act of 1983. This Act moves FRA 2 months each year for those born between 1955 and 1959. An FRA of 67 results in even less if you claim early and not quite as much at age 70.

    4. UNDERSTAND HEALTH CARE COSTS (PART 1)

    Plan on rapidly rising expenses

    Medical expenses tend to rise sharply throughout retirement as we grow older and require more care at higher prices. Out-of-pocket costs for an average 65-year-old retiree on traditional Medicare are projected to almost triple from around $500 per month this year to nearly $1,500 in today’s dollars by age 95.

    These costs are averages per person and do not include most long-term care. Costs may be much higher if you have expensive prescriptions.

    Include health care costs as a separate expense in your retirement plan and assume a 6.0% annual growth rate to be conservative. You may want to assess your long-term care alternatives when you are healthy, or as early as age 50, when the most options are likely available to you.

    Guide to Retirement US
    Guide to Retirement US

    4. UNDERSTAND HEALTH CARE COSTS (PART 2)

    Be aware of possible Medicare surcharges

    Discuss the possibility of higher Medicare premiums with your financial professional

    You’ll pay more in Medicare premiums if your Modified Adjusted Gross Income (MAGI) is above certain thresholds, starting at $91,000 filing single or $182,000 filing jointly. MAGI is Adjusted Gross Income (AGI) plus tax-exempt interest for this purpose.

    And understand that for all but the top category, the income thresholds for singles are half that for couples, making widows and widowers more likely to have to pay extra. A large Roth conversion in one year, a large asset sale or even Required Minimum Distributions (RMDs) can push some individuals over the thresholds, so you may want to get some advice from a financial or tax professional.

    5. MINIMIZE TAXES TO MAXIMIZE YOUR RETIREMENT

    4 Ways to pay less in taxes and keep more for retirement

    1. Optimize savings vehicles by opening tax-advantaged accounts (401(k)s, IRAs, HSAs) and consider diversifying across pre-tax/deductible and Roth options if available to you. As a general rule, saving into a Roth when income is relatively low and shifting as your income rises may result in lower taxes overall.

    2. Consider deferring income when you are in your peak earnings years until you are in a lower tax bracket in retirement. However, if you are already concentrated in tax-deferred accounts, contributing to a Roth may help you diversify your retirement tax picture.

    3. Work with your accountant and advisor to actively manage your tax picture throughout retirement. Higher incomes can also affect your Medicare premiums and taxability of Social Security benefits. Consider proactive Roth conversions in years when your tax rate is low.

    4. Maximize your after-tax return by holding your highest-taxed investments (those generating ordinary income or short-term gains) in tax-advantaged accounts, after funding your emergency reserves. Look to offset gains with losses when rebalancing your portfolio.

    Guide to Retirement US
    Guide to Retirement US

    6. ALIGN YOUR INVESTMENT OBJECTIVE WITH YOUR DESIRED OUTCOME

    Understand the trade-offs of different approaches

    Some individuals can increase their wealth in retirement; many of these households will have pensions, low expenses and/or a substantial amount saved and invested. For many this is unattainable or would result in overly constrained spending.

    Others may want to preserve principal which can curb overspending, but also may result in increased risk if there is a stretch for higher yielding investments.

    There is no shame in spending principal. If you are considering this approach, you might want to seek advice from a financial professional who can help you with a sustainable retirement plan that may include a spending policy and/or protected lifetime income.

    7. UNDERSTAND LOSS AVERSION AND STAY INVESTED

    Plan to stay invested

    During periods of extreme market declines, a natural emotional reaction can be to "take control" by selling out of the market and seeking safety in cash. This is due to “loss aversion” - or the fact that losses hurt more than gains feel good. The action not only locks in losses but often results in missing some of the best days that closely follow that are key to a portfolio’s recovery.

    Staying the course with a diversified long-term investment strategy is likely to produce a better retirement outcome.

    Guide to Retirement US
    J.P. Morgan Asset Management

    • Capital Gains Distributions
    • eDelivery
    • Fund Documents
    • Glossary
    • Help
    • How to invest
    • Important Links
    • Mutual Fund Fee Calculator
    • Accessibility
    • Form CRS and Form ADV Brochures
    • Investment stewardship
    • Privacy
    • Proxy Information
    • Senior Officer Fee Summary
    • SIMPLE IRAs
    • Site disclaimer
    • Terms of use
    J.P. Morgan

    • J.P. Morgan
    • JPMorgan Chase
    • Chase
    Opens LinkedIn site in new window Opens Youtube site in new window Opens Twitter site in new window

    This website 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 purposes. By receiving this communication you agree with the intended purpose described above. Any examples used in this material are generic, hypothetical and for illustration purposes only. None of J.P. Morgan Asset Management, its affiliates or representatives is suggesting that the recipient or any other person take a specific course of action or any action at all. Communications such as this are not impartial and are provided in connection with the advertising and marketing of products and services. 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.

     

    Opinions and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. We believe the information provided here is reliable but should not be assumed to be accurate or complete. The views and strategies described may not be suitable for all investors.

     

    INFORMATION REGARDING MUTUAL FUNDS/ETF: Investors should carefully consider the investment objectives and risks as well as charges and expenses of a mutual fund or ETF before investing. The summary and full prospectuses contain this and other information about the mutual fund or ETF and should be read carefully before investing. To obtain a prospectus for Mutual Funds: Contact JPMorgan Distribution Services, Inc. at 1-800-480-4111 or download it from this site. Exchange Traded Funds: Call 1-844-4JPM-ETF or download it from this site.

     

    J.P. Morgan Funds and J.P. Morgan ETFs are distributed by JPMorgan Distribution Services, Inc., which is an affiliate of JPMorgan Chase & Co. Affiliates of JPMorgan Chase & Co. receive fees for providing various services to the funds. JPMorgan Distribution Services, Inc. is a member of FINRA  FINRA's BrokerCheck

     

    INFORMATION REGARDING COMMINGLED FUNDS: For additional information regarding the Commingled Pension Trust Funds of JPMorgan Chase Bank, N.A., please contact your J.P. Morgan Asset Management representative.

     

    The Commingled Pension Trust Funds of JPMorgan Chase Bank N.A. are collective trust funds established and maintained by JPMorgan Chase Bank, N.A. under a declaration of trust. The funds are not required to file a prospectus or registration statement with the SEC, and accordingly, neither is available. The funds are available only to certain qualified retirement plans and governmental plans and is not offered to the general public. Units of the funds are not bank deposits and are not insured or guaranteed by any bank, government entity, the FDIC or any other type of deposit insurance. You should carefully consider the investment objectives, risk, charges, and expenses of the fund before investing.

     

    INFORMATION FOR ALL SITE USERS: J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide.

     

    NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

     

    Telephone calls and electronic communications may be monitored and/or recorded.
    Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our privacy policies at https://www.jpmorgan.com/privacy.

     

    If you are a person with a disability and need additional support in viewing the material, please call us at 1-800-343-1113 for assistance. 

     

    Copyright © 2023 JPMorgan Chase & Co., All rights reserved