JPM JP Morgan Chase and Co

Retirement spending tools integrated into SmartRetirement target date series, participants to be provided with annual sample spend down amount and interactive spending calculator

New solution leverages JPMorgan Chase real-world spending data and participant research

NEW YORK, March 21, 2022 /PRNewswire/ -- J.P. Morgan Asset Management today announced the launch of enhancements to its suite of SmartRetirement target date funds, incorporating new spending capabilities to support participants through their whole retirement journey―from saving during their working years to making the most of those savings once they retire. The new enhancements will complement the firm's SmartRetirement Plus solution announced in 2021, which pairs J.P. Morgan Asset Management's SmartRetirement and spending intelligence with a protected lifetime income option, AIG Life & Retirement's IncomEdge Control annuity issued by The Variable Annuity Life Insurance Company.^[1] J.P. Morgan is currently in dialogue with multiple institutional clients regarding SmartRetirement Plus.

Once SmartRetirement investors reach retirement, the fund will be managed to allow investors to withdraw a portion of their investment in the fund each year until the target maturity year set at 35 years after retirement. In connection with this, the fund will produce an annual sample withdrawal amount. The sample withdrawal amount seeks to estimate a percentage of a participant's account balance that they could choose to redeem during that year, while still allowing for redemptions in future years through the target maturity year. The solution is delivered through an integrated digital experience that includes an interactive calculator to evaluate spending tradeoffs in retirement.

The new retirement spending capabilities have been developed by harnessing JPMorgan Chase's unique access to spending data from nearly half of U.S. households to better understand real-life participant behavior and spending patterns in retirement. This is backed up by the firm's research revealing that nearly seven out of 10 defined contribution plan participants are concerned about outliving their money in retirement, while 85 percent say that they would likely leave their balances in their plans post-retirement if there was an option to help generate monthly retirement income.

The firm's recent behavioral research, Retirement by the Numbers, informed updates to the SmartRetirement glidepath, with increased allocations to return enhancing assets driven by increased income needs in retirement. The research found that retirees need to replace more than 90% of their working income as they transition into retirement compared with the conventional wisdom of 70-80%.

"Retirees are increasingly looking to their employers to help them plan their income needs in retirement, and through our access to real-world spending data across JPMorgan Chase, we are uniquely positioned to build this innovative solution to help Americans navigate retirement," said Andrea Lisher, Head of Americas Client for J.P. Morgan Asset Management. "Through integrating retirement income into our award-winning SmartRetirement target date series, we are not only helping people build adequate savings during their working years, but also giving them confidence to spend down in retirement."

"The SmartRetirement glide path is built to withstand a range of market cycles and conditions to improve retirement outcomes, said Dan Oldroyd, portfolio manager and Head of Target Date Strategies, J.P. Morgan Asset Management. "The integration of retirement income capabilities will help to ensure participants now have an innovative, intuitive post-retirement income option."

JPMorgan SmartRetirement Blend is one of only two blended target date fund series with a Gold Morningstar Analyst Rating¹ and SmartRetirement's actively managed mutual funds are one of only seven target date fund families that hold a Morningstar Analyst Silver Rating². JPMorgan SmartRetirement portfolios leverage J.P. Morgan Asset Management's industry leading insights including the Guide to Retirement and Long-Term Capital Market Assumptions, and are the result of over 250,000 simulations to ensure the glide path is positioned to endure a range of market cycles and participant behavior.

¹ Source: Morningstar, US Fund Target Date categories. Analyst rating as of 10/4/21; applies to SmartRetirement Blend R6 mutual funds only.
² Source: Morningstar, US Fund Target Date categories. Analyst rating as of 10/4/21; applies to the SmartRetirement R6 mutual funds.

About J.P. Morgan Asset Management

J.P. Morgan Asset Management, with assets under management of $2.7 trillion (as of 12/31/2021), 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.

J.P. Morgan Asset Management is the marketing name for the asset management business 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 ("U.S."), with operations worldwide. JPMorgan Chase had $3.7 trillion in assets and $294.1 billion in stockholders' equity as of December 31, 2021. 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 U.S. 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

^[1] The IncomEdge Control annuity is a fixed annuity issued by The Variable Annuity Life Insurance Company (VALIC), Houston TX. Policy form number VG-224.  VALIC is responsible for financial obligations of its protected lifetime income products, and guarantees are backed by the claims-paying ability of VALIC  VALIC is a member of American International Group, Inc, (AIG).

J.P. Morgan Asset Management is not an insurance company and makes no representations or recommendations whatsoever about any specific annuity product. Any questions relating to the annuity must, and will, be directed to the insurance company.

Investors should carefully consider the investment objectives and risks as well as charges and expenses of a mutual fund before investing. The summary and full prospectuses contain this and other information about the mutual fund and should be read carefully before investing. To obtain a prospectus for Mutual Funds: Contact JPMorgan Distribution Services, Inc. at 1-800-480-4111.

Certain underlying funds of the SmartRetirement Funds may have unique risks associated with investments in foreign/ emerging markets securities and/or fixed income instruments. International investing involves increased risk and volatility due to currency exchange rate changes; political, social or economic instability; and accounting or other financial standard differences.  The strategic asset allocation depicts the funds targeted weights. Actual allocations may differ. We may adjust this amount based on J.P. Morgan's internal research and market conditions.

J.P. Morgan Funds are distributed by JPMorgan Distribution Services, Inc., which is an affiliate of JPMorgan Chase & Co. Affiliates of JPMorgan Chase & Co. receive fees for providing various services to the funds. JPMorgan Distribution Services, Inc. is a member of FINRA 

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SOURCE J.P. Morgan Asset Management