In their 13-year run publishing the annual J.P. Morgan Guide to Retirement, retirement strategists Michael Conrath and Sharon Carson have seen some big changes in how U.S. households are preparing for life after work.
The investments people choose and the vehicles they use to grow and protect their savings have steadily evolved, the pair told ThinkAdvisor during a recent interview in New York. There’s also been some clear consistencies, however, starting with the fact that “retirement” means different things to different people. Similarly, each individual has a unique path to building wealth and a different relationship with work and money.
So often, though, financial advisors and the public are presented with averages, Conrath and Carson observed, from average account balances to average savings rages. While informative in their own way, averages in the retirement planning domain mask just as much important information as they reveal.
That’s why the research team uses anonymized household data from the client base of the Chase consumer banking unit to build a detailed and segmented review of just where Americans stand in their retirement preparations. They also develop recommendations and strategies for advisors to consider as they help their clients across wealth levels prepare for retirement.
“Retirement means different things to different people, and planning for it involves a multitude of decisions that can feel daunting or overwhelming,” said chief strategist Conrath. “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.”
Carson concurred, adding that the ability to simplify the answers to the most common retirement planning questions is crucial.
“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,” Carson said.
See the slideshow for 13 highlights drawn from the 13th edition of the report.
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