Since 2005, J.P. Morgan Asset Management has published “Retirement by the Numbers” to analyze how its customers save, invest and spend throughout their working lives and retirement.
“Our latest “Retirement by the Numbers” research provides actionable insights to help sponsors design plans that reflect how participants actually save and spend,” said Michael Conrath, Chief Retirement Strategist at J.P. Morgan Asset Management. “Since defined contribution plans continue to serve as the primary retirement vehicle for many Americans, it’s important for plan sponsors to align plan features with real-world participant behaviors to help drive stronger retirement outcomes.”
Highlights:
- Retirement spending is dynamic, with 60 percent of new retirees reporting that their annual expenses fluctuate up or down by more than 20 percent in the first three years.
- For partially and fully retired households, annual expenses for retirees aged 60 to 64 is $75,630, compared with $51,920 for retirees 90 to 94.
- 48 percent of plan participants carry credit card debt, which can increase their likelihood of taking loans from their retirement plans.
- High credit card balances are associated with lower contribution rates and smaller account balances, reducing retirement readiness by up to 40% for older participants.
