N J.P. o E M BRI org data an an alysis fin Asse was t tr M d an s t an sferr h ag at em b ed to J et ent we is en 1 Pthe Mo 5 m rg and an arke Ch 24 tin ase, per g nam cent ande t of fo he r the t dh ata e ho asse pri useh vt ac m oy ld an o s f par ag with em ti spend en cip t an bu ts in sin g an gap esse d cs o s o n wo tractual f uld ha ve FOR IMMEDIATE RELEASE i J relatio P Cha Mo se rg s nan e shi rv Chase e ps s n with r ear & ly h C ec alf o oo . an rd f Ame ke d epers ha its affili rica’s h ate v oe u s w sb ee ho en car orld ldswid with eful e. a ly brp oro adte ran cte ge d o . EB f fin RI ha ancial s s no erv ac ice cess s, int clud o per ing p son eall rso y n al IRA balances that last until age 100. banking, credit cards, mortgages, auto financing, investment advice, small business loans and payment processing. identifiable information. Betsy Jaffe • Across observed retirement wealth quartiles, there is more spending at almost all ages for Learn more. Director, Marketing and Public Relations households who have at least some annuities and/or pensions. And, the impact is greatest for ii Data privacy and contractual relationships with recordkeepers have been carefully protected. This document is a general communication being provided for informational purposes only. It is Employee Benefit Research Institute households with lower observable retirement wealth: for the lowest and second lowest wealth Abo educatio ut EB n RI al in nature and not designed to be taken as advice or a recommendation for any specific press-media@ebri.org quartile, the median spending with some annuities and/or pensions is larger by $10,740 and investment product, strategy, plan feature or other purpose in any jurisdiction, nor is it a commitment 202.775.6347 $10,450, respectively. from J.P. Morgan Asset Management or any of its subsidiaries to participate in any of the transactions • There is a very significant overall decrease in asset allocation equity concentration after rollover The Employee Benefit Research Institute (EBRI) was founded in 1978. Its mission is to contribute to, to mentioned herein. Any examples used are generic, hypothetical and for illustration purposes only. This from a 401(k) to an IRA at retirement age at the median level. m enco ateri urag al d e, o and es n t ot o e co n n h tain anc e su tffi he cient inf develop om rm ent atio on f s to ou sup nd e po m rt plan oy in eev b est enefit pr ment decisi ogram on s and and so it sh un o d u pu ld no blic t be • When it comes to the most conservative 401(k) investors, those without annuities and/or policy through objective research and education. EBRI is the only private, nonprofit, relied upon by you in evaluating the merits of investing in any securities or products. In addition, users nonpartisan, Washington, DC-based organization committed exclusively to public policy research and should m pa ensions had ke an independ a slig eh ntly t assess larger mequ ent it oy f t ch oe n legal centra , regu tion in lato th ry eir IRA , tax, cr po edi rtfo t, an lios af d acco ter u ro ntin llov ger than they New Combined Dataset Reveals Unique Insights into Income and Spending in Retirement: education on economic security and employee benefit issues. implicatih oad ns and in their 4 dete0 rm 1(k) ine pla , to n g s; et h ho er wev with er, t their hose o w wn p ith ro sofessi me a on nn al ad uities visers, and/ if any or pen isi nv oest ns h m ad en a t mentioned herein is believed to be suitable to their personal goals. Investors should ensure that they obtain all significantly larger increase in equity concentration. available relevant information before making any investment. Any forecasts, figures, opinions or Analysis of Actual Behavior Provides New Insights into Require Minimum Distributions, EBRI's membership includes a cross-section of pension funds; businesses; trade associations; labor investment techniques and strategies set out are for information purposes only, based on certain “With more and more Baby Boomers entering retirement, it is critically important to understand how Annuities, Spending Gaps, and Risk-Taking in Retirement unions; health care providers and insurers; government organizations; and service firms. The 401(k) assumptions and current market conditions and are subject to change without prior notice. All they are spending their money, and what factors are influencing their spending decisions,” said Kelly universe is a joint collaboration between EBRI and the Investment Company Institute. information presented herein is considered to be accurate at the time of production, but no warranty of Hahn, Defined Contribution Strategist for JPMorgan Asset Management. “In future research, EBRI and accuracy is given and no liability in respect of any error or omission is accepted. It should be noted that JPMAM will continue to harness data to gain a deeper understanding of how households behave in WASHINGTON – June 24, 2021 – EBRI and J.P Morgan Asset Management have released their second joint investment involves risks, the value of investments and the income from them may fluctuate in saving for, and spending in, retirement and what factors drive those behaviors.” research report aimed at answering important policy questions impacting today’s and future retirees. This research paper was produced through a collaboration between J.P. Morgan Asset Management and accordance with market conditions and taxation agreements and investors may not get back the full the Employee Benefit Research Institute (EBRI), a Washington, D.C.-based organization committed amount invested. Both past performance and yields are not reliable indicators of current and future “In Data There Is Truth: Understanding How Households Actually Support Spending in Retirement” uses “In Data There Is Truth: Understanding How Households Actually Support Spending in Retirement” can exclusively to public policy research and education on economic security and employee benefit issues. results. a unique data source that tracks both actual income and spending and utilization of both 401(k)s and be downloaded from ebri.org. IRAs, to offer a holistic view of how a retired household supports their spending in retirement. In an ongoing collaborative effort, the Employee Benefit Research Institute (EBRI) and the Investment DATA PRIVACY: We have a number of security protocols in place which are designed to ensure all A key finding of the report is that a vast majority of retired households use required minimum About the EBRI/JPMC Research Company Institute (ICI) maintain the EBRI/ICI Participant-Directed Retirement Plan Data Collection customer data are kept confidential and secure. We use reasonable physical, electronic, and procedural distributions (RMDs) to generate income from their retirement wealth. Around 80% who are younger Project, which is the largest, most representative repository of information about individual 401(k) plan safeguards that are designed to comply with federal standards to protect and limit access to personal than RMD age are not taking withdrawals and around 84% of those subject to RMDs only took the The paper is based on research from a collaboration of Employee Benefit Research Institute (EBRI), with participant accounts. ICI is the leading association representing regulated funds globally, including information. There are several key controls and policies in place which are designed to ensure customer required amount. Of those households that deviate from the RMD schedule, those households taking an more than four decades of research on retirement policy, and JPMorgan Chase & Co., which serves mutual funds, exchange-traded funds (ETFs), closed-end funds, and unit investment trusts (UITs) in the data are safe, secure and anonymous: (1) Before J.P. Morgan Asset Management (JPMAM) receives the i IRA withdrawal prior to reaching the age for RMDs appear to need the additional income to support nearly half of U.S. households. As of 2018, EBRI data on more than 23 million 401(k) and IRA accounts United States, and similar funds offered to investors in jurisdictions worldwide. While this paper uses data, all selected data is highly aggregated and all unique identifiable information, including names, their current consumption levels. However, that may not be the case for households taking more than detail such variables as account balances, asset allocation and post-retirement withdrawals. JPMorgan data from the EBRI/ICI database, ICI did not participate in the research collaboration between EBRI and account numbers, addresses, dates of birth and Social Security numbers, is removed. (2) JPMAM has put the required minimum distribution after age 70.5. Specifically, for those taking the IRA distribution prior Chase data includes a comprehensive view of total household spending through all payment JPMAM and was not involved in the writing of this paper. privacy protocols for its researchers in place. Researchers are obligated to use the data solely for to the required age, the average "excess" income is relatively small and never exceeds $2,300. In mechanisms (credit card, debit card, cash and checking) and sources of income including Social Security, approved research and are obligated not to re-identify any individual represented in the data. (3) contrast, the "excess" income for those taking more than the RMD is never less than $10,200. ii annuity, pensions, etc. for around 21 million customer households. JPMAM does not allow the publication of any information about an individual or entity. Any data point About J.P. Morgan Asset Management included in any publication based on customer data may only reflect aggregate information. (4) The data Commitment to Privacy and Security are stored on a secure server and can be accessed only under strict security procedures. Researchers are “Findings like these—that are based on actual observed behavior of those taking RMDs—are important not permitted to export the data outside of J.P. Morgan Chase's (JPMC) systems. The system complies as policymakers consider changes to the required age of taking minimum distributions,” said Jack J.P. Morgan Asset Management, with assets under management of USD 1.9 trillion (as of 31 March with all JPMC Information Technology Risk Management requirements for the monitoring and security VanDerhei, EBRI Director of Research and author of the report. JPMorgan Chase has adopted rigorous security protocols and checks and balances to ensure all 2020), is a global leader in investment management. J.P. Morgan Asset Management's clients include of data. (5) JPMAM provides valuable insights to policymakers, businesses and financial professionals, customer data are kept confidential and secure. Strict protocols are informed by statistical standards institutions, retail investors and high net worth individuals in every major market throughout the world. but these insights cannot come at the expense of consumer privacy. We take every precaution to ensure employed by government agencies. Additionally, the firm's work with technology, data privacy, and J.P. Morgan Asset Management offers global investment management in equities, fixed income, real the confidence and security of our account holders' private information. Additional key findings include: security experts will help maintain industry leading standards. estate, hedge funds, private equity and liquidity. JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of USD 2.7 trillion (as of 31 December 2019) and operations worldwide. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com. SOURCE J.P. Morgan Asset Management • Fewer than expected households in the sample with "spending gaps" were in a position to safely JPMorgan Chase also has put in place privacy protocols for its researchers and only allows aggregated increase post-retirement expenditures. Specifically, depending on the marginal tax rate, the data to be published. All unique identifiable information – including names, account numbers, addresses, dates of birth, and social security numbers – is removed.