J.P. Morgan Asset Management has published a new edition of its “Retirement By the Numbers” research series, drawing on data from some 16,000 defined contribution plans and over 12 million individual retirement savers.
The results present a nuanced view of the average American’s retirement readiness, with many appearing to be dedicated to the savings effort while also being burdened by substantial debt and other near-term financial challenges.
“Financial health matters, and the financial pressures outside of retirement plans directly affect savings behavior and long-term financial security,” said Michael Conrath, chief retirement strategist at J.P. Morgan Asset Management, in a statement. “Our latest research provides actionable insights to help employers design retirement plans that reflect how people actually save and spend.”
As the report shows, small changes in savers’ behaviors can have surprisingly big effects on their retirement finances — both positive and negative. That’s why it’s important for employers and financial advisors to be proactive with their education and plan design efforts.
“When it comes to retirement plans, there is no one-size-fits-all approach,” added retirement strategist Sharon Carson. “Average income replacement needs can vary widely depending on pre-retirement salaries and Social Security benefits received. These findings highlight the importance of flexible, personalized retirement solutions and challenge conventional thinking around static income replacement rate assumptions.”
See the slideshow for a review of key highlights from the new report.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.