Solution offers an innovative lifetime income strategy providing transparency and flexibility to retirement savers.
New York, NY, August 15, 2024 – J.P. Morgan Asset Management today announced a new retirement income solution, SmartRetirement Lifetime Income, a target date offering that helps participants navigate the challenges associated with generating retirement income. The strategy seeks to reduce portfolio volatility as participants near retirement and provide access to a stream of lifetime income payments offered by unaffiliated participating insurance companies by building upon a stable value structure.
“Retirement savers want a solution that turns complexity into clarity, allowing them to have the certainty of a source of income they cannot outlive, without giving up control of their savings,” said Steve Rubino, Head of Retirement for J.P. Morgan Asset Management. “We’re excited about SmartRetirement Lifetime Income’s innovative design, including the lifetime income feature supported by insurers. This solution simplifies the saving and spending phases of retirement savings, leverages products familiar to plans and participants and makes it easy to adjust your retirement income strategy as life’s priorities change.”
“The combination of J.P. Morgan’s extensive investment capabilities with a solution offered by insurers that is designed to provide lifetime income will help more people achieve their retirement goals,” said Dan Oldroyd, Head of Target Date Strategies at J.P. Morgan Asset Management. “Retirement income solutions that utilize annuity products can feel complex and opaque to plan sponsors and participants. We believe our use of a target date offering complemented by annuity contracts results in greater transparency for our investors.”
SmartRetirement Lifetime Income allows plan participants to save for retirement using familiar target date funds and then transition to a personalized retirement income strategy, supported by multiple insurers selected by J. P. Morgan Asset Management, which are expected to include Equitable and Prudential. The new lifetime income feature will allow electing participants to draw down their stable value balance over an expected time horizon correlated with average life expectancies and then, upon meeting certain requirements, the participants will begin to receive annuity income directly from the supporting insurers.
“More and more plan sponsors are taking action to help employees protect their life’s work and ensure a secure retirement,” said Ann Nanda, head of Future Growth Initiatives and Distribution Enablement at Prudential Retirement Strategies. “In-plan decumulation solutions like J.P. Morgan’s SmartRetirement Lifetime Income offer an innovative way to seize this opportunity for many Americans, so they can live a better life, longer.”
“Equitable believes access to secure lifetime income options through defined contribution plans is critical to helping close the U.S. retirement income gap,” said Aaron Sarfatti, Chief Strategy Officer and Head of Institutional Businesses and New Ventures at Equitable. “We look forward to supporting J.P. Morgan in its SmartRetirement Lifetime Income offering and helping its clients build a secure financial future.”
SmartRetirement Lifetime Income’s design is based on a deep understanding of how participants save and spend and how much income they will need in retirement, using data inputs such as J.P. Morgan’s proprietary participant savings data and Chase’s spending data across 66 million U.S. households. SmartRetirement Lifetime Income provides support from the savings phase through to retirement spending.
In the savings phase, participants simply select a target date vintage that aligns with their expected year of retirement. At retirement, participants will have the option to create a personalized retirement income plan allocating across a set of spending funds – the Lifetime Retirement Income Fund and the Flexible Retirement Income Fund.
SmartRetirement Lifetime Income was designed by the same team that oversees the firm’s SmartRetirement Target Date Funds, including experienced portfolio managers in the target date and retirement income fields, Daniel Oldroyd and Daniel Yem, who have a combined 45 years of industry experience.
To learn more about SmartRetirement Lifetime Income strategy, please visit its dedicated website.
About the lifetime income feature and spending funds
The optional lifetime income feature is a guaranteed withdrawal strategy designed to allow participants to spend down their investment in the Lifetime Retirement Income Fund over a period of time that is linked to average life expectancies. Upon depleting their investment in the Lifetime Retirement Income Fund participants will begin receiving annuity income directly from the supporting insurers for the rest of their life contingent upon various factors including the claims paying ability of the insurer and the participant making only the contractual withdrawals. J.P. Morgan will not guarantee the obligation of the supporting insurers to make the annuity payments directly to the participant. J.P. Morgan Asset Management expects to make the Lifetime Retirement Income Fund, or a fund similarly structured, available for use as an asset class within custom target date fund structures.
The Lifetime Retirement Income Fund is a fund designed to offer principal protection and potential daily growth, through a stable value investment structure, and access to the optional lifetime income feature offered by the supporting insurers. A stable value structure is generally a more conservative investment approach; however, there is no assurance that the Lifetime Retirement Income Fund will achieve its investment objectives.
The Flexible Retirement Income Fund offers a balanced portfolio of stocks and bonds designed to offer growth potential and a flexible withdrawal strategy through retirement.
About J.P. Morgan Asset Management
J.P. Morgan Asset Management, with assets under management of $3.3 trillion, as of June 30, 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: 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, with operations worldwide. JPMorgan Chase had $4.1 trillion in assets and $341 billion in stockholders’ equity as of June 30, 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 United States, 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.
About Prudential
Prudential Financial, Inc. (NYSE: PRU), a global financial services leader and premier active global investment manager with approximately $1.5 trillion in assets under management as of June 30, 2024, has operations in the United States, Asia, Europe, and Latin America. The Retirement Strategies team at Prudential delivers industry-leading solutions for growth and protection to more than 2 million individual and institutional customers. Prudential’s iconic Rock symbol has stood for strength, stability, expertise, and innovation for nearly 150 years. For more information, please visit news.prudential.com.
About Equitable
Equitable, a principal franchise of Equitable Holdings, Inc. (NYSE: EQH), has been one of America’s leading financial services providers since 1859. With the mission to help clients secure their financial well-being, Equitable provides advice, protection and retirement strategies to individuals, families and small businesses. Equitable has more than 8,000 employees and Equitable Advisors financial professionals and serves 3 million clients across the country. Please visit equitable.com for more information.