Close Close

10 New Retirement Planning Charts to Share With Clients

Your article was successfully shared with the contacts you provided.

Related: Here’s How Much Clients Should Have Saved for Retirement at 5 Different Ages

It’s no surprise that retirees, and those saving for retirement, need to have a larger portfolio to handle a longer life expectancy than in the past.

As the retirement team at J.P. Morgan Asset Management reviewed key points of its latest Guide to Retirement, it illustrated the changes happening across the board — from longer life expectancies to understanding how inflation can affect retirement lifestyles and what advisors need to do to educate their clients on these factors.

Five key themes were reviewed by J.P. Morgan Asset Management Chief Retirement Strategist Katherine Roy, retirement strategist Sharon Carson and defined contribution strategist Kelly Hahn:

  1. Plan for an even longer life — one that might be 35 years in retirement.
  2. Consider typical spending patterns. For households with estimated investable wealth of $1 million to $3 million, average spending is highest around ages 50 to 55 and declines until about 80, when it rises again, largely due to health care expenses.
  3. There are retirement savings “checkpoints” that need to be reviewed early on so investors can see if they will have enough for 35 years of retirement.
  4. Inflation must be kept in mind. That means clients should take a long-term view and plan for health costs separately.
  5. Retirement income and assets need to align, so retirees should “guarantee a floor” of nondiscretionary spending through relatively safe or guaranteed funding sources.

The guide also went into details on Social Security, Medicare, long-term care planning and tax  issues as well. The gallery above looks closely at some of the points made in the presentation.