A new research report, “Where Are Households Spending Their Defined Contribution Plan Loans: An Examination of Public-Sector Participants,” published today by the Employee Benefit Research Institute (EBRI) and J.P. Morgan Asset Management, found spending increases in many different categories among households with participants taking a defined contribution (DC) plan loan. Yet, health care and housing spending, particularly among the households starting a new mortgage, stood out as places where spending increases were more likely to occur than in households where a plan loan was not taken.
“Loan usage does not appear to be tied to spending on luxury items but has more to do with their health care or investing in a home. This supports that prohibiting plan loans would not necessarily improve participants’ retirement security, as the loan usage is more likely to help with expenses that would impact retirement — health and homes. Without the option of taking a plan loan, participants would seek loans outside the plan to fill spending gaps, and those loans may have terms more expensive than those of a plan loan,” said Craig Copeland, director, Wealth Benefits Research, EBRI. “Yet, having liquid accounts, such as health savings accounts and emergency savings accounts that can provide funds for health care or housing, could help limit DC plan participants’ need to tap into their retirement savings accounts when faced with health events or when investing in or repairing their homes.”
Key findings in the new report include:
• In this sample of public-sector DC plan participants where a loan option is available, 10.9% took a loan in the year studied. The likelihood of a participant taking a plan loan increased with age through their 50s then declined, while household income did not appear to have an impact on the likelihood of taking a plan loan. The percentage who took a loan increased substantially with credit card utilization, as 6.9% of participants in households with no outstanding credit card balances took a loan compared with 19.8% of those who have outstanding credit card balances equivalent to 80–100% of their credit card limits.
• Among those with a new DC plan loan, health care spending was the most likely to have increased, as 58.5% of households where a participant took a loan saw their spending on health care increase by more than 10% in the year they took the loan. This was followed by travel (22.4%), entertainment (19%) and non-specified cash spending (18.9%). Comparing the spending increases by categories with those who did not take a loan, only health care spending showed a higher likelihood of having increased by more than 10% among those taking loans. Otherwise, spending changes were very similar between households with or without a plan loan.
• Spending increases on health care were more prevalent among the “financially stressed” households whose plan participants were ages 50 or older, as 63.3% of the households where a loan was taken had this increase compared with 56.8% of the households where a loan was not taken.
• In an alternative test, the share of total spending that each category represented was compared between the year prior to the loan incidence and the loan year to see if any category spending share increased by more than five percentage points. The spending categories most likely to have seen an increase in their share of total spending of this size were unspecified cash spending (24.9% of the households), health care (23.3%) and housing (21%).
• Only housing spending and unspecified cash spending had higher likelihoods of share increases for those taking a loan vs. those who did not. Otherwise, the likelihoods of the changes in the shares of spending in each of the other categories were similar between the households or less for the households with a participant taking a plan loan.
• Households who started mortgage payments in the year of the loan incidence analysis were more likely to have taken a plan loan than those who did not start mortgage payments in that year — 15.6% vs. 10.7%. This was true for households with plan participants of all ages. Looking at this correlation in the opposite direction, the percentage of those having a new mortgage given that they had taken a plan loan was 5.8% compared with 3.8% starting a new mortgage when they had not taken a plan loan. Again, a higher likelihood of starting a new mortgage for those who had taken a plan loan was found across all ages.
• DC plan participants in households with higher credit card usage have lower average contribution rates across all ages except for those ages 60 or older. As a result, participants in households with high credit card utilization have lower average account balances.
“This new report finds that higher debt can have a long-lasting impact on retirement security, since higher credit card utilization is correlated with lower DC plan contributions and account balances. The availability of emergency savings to help cover expenses can be a critical factor in preventing or stalling a cycle of increasing debt that can significantly impact retirement readiness,” said Michael Conrath, Chief Retirement Strategist, J.P. Morgan Asset Management. “Additionally, we observed that participants who take plan loans often see an increase in health care spending. This suggests that reviewing the types of health insurance and cost-sharing options available to DC plan participants could help strengthen their financial well-being, underscoring the connection between health and wealth.”
A gib vo en utt J h P at M to hrey gan h ad Ch ase taken & C ao p .l an loan was 5.8% compared with 3 .8% starting a new mortgage when they had not taken a plan l Jo Pan Mo . r A gg an ain C ,h a ase hig& her Co li.k (N eliY hSE oo :d J P oM f st ) iart s N a ie n lw eadi g sa Fr n new o gm fi n m Tan h oe rt c iE g al m ag serv p e lo fo y ie c r es e th B o fi e se rm ne who fib t ased Re h se ad ia n r t c taken h h e In U sn titu a it ped lt an eSt lo at an es was of Afm ou eri nd ca ac (“ rU oss .S.” al ),l wi agt es. h o • p D er C ati plan on s pw art oirl cd ip wi an d te s .i n JP h M oo ur seho gan C ld h s ase with had hig $ h 4 er .6 c tredi rillio tn c ard in asset usag s e an hav d $ e 3l6 o0 we bir llav ion erag in se to cc o kho ntrilb du er tis’ o n equ raties ty as acro of ss Sep allt em ages ber ex3 c0 e,p t fo 20r 2t5 h .o Tse he ag Fies rm6 i0 s a or leader older.i n A s in a ves resul tment t, part ban icki ipn an g,t s fin in an hc oiu al seho serv ld ics es wi ft oh r h co ig n h sume credi rt s c an ard d sm utial lizlat bu io si nn h esse ave s, lo c we om r m av er erag ciale bac anc ki on unt g, New Research Report Examining Where Households Spend Defined Contribution Plan Loans Finds b fial nan anc cies. al t ransaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of a Likelihood to Spend Loan Money on Health Care and Housing Rather Than on Travel or customers in the U.S., and many of the world’s most prominent corporate, institutional and government clients globally. Entertainment I “n Tfh oirm s na ew tio r n epo abo rt u fi t n JP dM s t o h rat gan h iC gh her ase debt & C o c. an is h aa vv ai el ab a llo e na g t- ww lasti w n.g jp im mo pr ac gan t oc n h r ase. etirc em om ent . security, since higher credit card utilization i s correlated with lower DC plan contributions and account balan ces. The availability of emergency savings to help cover T expenses his docum can ent b e is a a cg ri ener ticalal fac co tm or m in u p nr ic ev ati enti on n bg ei o nr gs p tal ro liv n id ged a cfy o cr le in o fo f rm incati reasi onn al g p du ebt rpo tses hat o cn an ly .si It g n is ifi edu can ct ati ly o im nal pac int n reti atu rem re an en dt not - Plan loan usage increased substantially with credit card utilization - r deadi esign ness, ed t” o sai be dt ak Mien chael as ad Co vn ic re ato hr , a Ch rec ief oR m eti mrend ement atio St n r fo at r eg an is yt , spec J.P. iM fic o irn gv an es A tm sset ent M pr an od ag uc em t, st ent rat . eg “Ay d,d p iti lan on fal eat ly,u w re e o or bo serv ther ed that p pu arti rpo cise pan int s an who y ju ri tak sdi e cp tilo an n ,l o nan or s is oift t a en co see mm an itm in ent crease from in J .h P eal . Mto hr c gar an e A spen ssetd M inan g. ag Th em is sug entg o es r tan s ty h at of r it ev s sub iewsi in d gi ari the es ty tp oes parti of c hieal pat te h For immediate release: 10/16/25 i in nsur any an oc f e th an e d tr c an os sac t-sha tiori nn s g m o enti ptio on ns ed avh ai er lab eiln e . tA on D yC e x pam lanp p les arti uc sed ipan ar ts e c go eneri uld h cel , h py s p to reng theti th cen al an thd ei f r o fi r n ilan lus ct ial rati w o el nl - p b u ei rp no gses , only. For more information: Ron Dresner T uh nid s er m sc at o er riin al g d th oe es co nn on t ec coti no tai n n b et suffi wee cient n heal infto hrm an ad ti o wn eal tot h sup .” port an investment decision, and it should not be relied upon by you dresner@ebri.org in evaluating the merits of investing in any securities or products. In addition, users should make an independent assessment of T th oe vlieg ew al t,h re eg cu ol m at p o let ry,e tax, repo crrt edi , “t Wher , and e ac Acro e u H no tiu nseho g imp ld lis cati Spend ons ian ngd T d het eir erm Defi in n e, ed to C go et nh tri eb r u wi tio th n tP hlei an r o Lo wn ans: pr A of n essi Exam onal in a ad tio vin ser of s, if (Washington, D.C.) – A new research report, “Where Are Households Spending Their Defined Contribution Plan Loans: An P an uy b liin cv -Sec estm toent r Parti menti cipan onted s,” h ver isiei t ww n is w b.el ebri iev .ed orgt/o d c b-e plsui ant -ab loan le s. to their personal goals. Investors should ensure that they obtain all Examination of Public-Sector Participants,” published today by the Employee Benefit Research Institute (EBRI) and J.P. Morgan available relevant information before making any investment. An y forecasts, figures, opinions or investment techniques and Asset Management, found spending increases in many different categories among households with participants taking a strategies set (o M uE t DI are A fN oO r iT nE f: o T rm o r ati eco en iv al e p th ue rp c o o ses mpo le ntle y, r b eased searco hn r e cert por ai t, nc assu onta m ct pR tio on n s Dr an es dn c e u rrr aent t dr m esark ner et @ c eo bn rd i.o iti ro gn ).s and are defined contribution (DC) plan loan. Yet, health care and housing spending, particularly among the households starting a new subject to change without prior notice. All information presented herein is considered to be accurate at the time of production, mortgage, stood out as places where spending increases were more likely to occur than in households where a plan loan was A bu bt o n uo t tw he arr Ean BRI ty /J o Pf M aC cc R uese racy ar ic s h g iven and no liability in respect of any error or omission is accepted. It should be noted that not taken. Th invis es p tm apent er i s inb vased olves ori nsk rese s, th arc e v hal fr u o e m o f ai n co vest llab m or ent atis on an od f E th m e piln ocy o ee m e Bene from fi tt h Rem ese ar mc ah y Ifl nu sc tittu uat te e (E in BRI ac), co wi rdt an h m ce owi ret t h h m an ark foet ur 1 c do ec nad diti es on o s f an rese d tar ax cati h o on n rag eti rr ee em ment ent s po an lic dy , i n an ves d tJo PrM s m ora gy a n n o Cth g ase et b Ban ack k, th N e. A fu . l(C l am hase) oun . t T in hv e es lat ted. est Bo rese tharc past h cp oerf llab or om rati an o cn e b an et d w y ee iel n d s “Loan usage does not appear to be tied to spending on luxury items but has more to do with their health care or investing in a J ar .P e . M no o tr g rel an iab Asset le in d M ic an atag ors em of ent cur an rent d tan he dE fu mt p u lo re y ee resul Bene ts. fi t Research Institute, which leverages data across 29 million Chase home. This supports that prohibiting plan loans would not necessarily improve participants’ retirement security, as the loan 2 households and 2.5 million public sector defined contribution plan participant records, presents a new way of thinking about usage is more likely to help with expenses that would impact retirement — health and homes. Without the option of taking a D th A is TA c ri Pti Rc IV al A – C Y b:u W t s e tih lla el ve usi a v ne um – sub ber jec of tsec . Ch uase rity d pat roa to in co cllu s d in es pa lac co e m whi prehensi ch are v de esi vig ew ned of to to ensu tal ho re useho all culs dt o spen mer dd in at ga th ar ro e u kg ept h al l plan loan, participants would seek loans outside the plan to fill spending gaps, and those loans may have terms more expensive c po an ym fid ent enti m alec an hd an sec ism us re. (se W lec e t u c se redi reaso t car nd ab , d le ebi ph ty csi ard cal,, cel ash ectan ron di c ch , an eck di n pg ro ) c an edu d so ral u saf rces eg o u far in d cs ot m hat e i n ar ce lu d desi ingg So ned cial to Sec com uri ptly y, with than those of a plan loan,” said Craig Copeland, director, Wealth Benefits Research, EBRI. “Yet, having liquid accounts, such as 3 an feder nuial ty ,s t pan ensi dao rd ns s,t et o p c.r o fo tec r ar t o an un dd li m 21 it m ac ilc liess on c tu os p to er m so er nal ho iu nseho formlati ds. on . There are several key controls and policies in place which health savings accounts and emergency savings accounts that can provide funds for health care or housing, could help limit DC ar e designed to ensure customer data are safe, secure and anonymous: (1) Before J.P. Morgan Asset Management (JPMAM) plan participants’ need to tap into their retirement savings accounts when faced with health events or when investing in or D rec atei a v So es ut rh ces e d ata, all selected data is highly aggregated and all unique identifiable information, including names, account repairing their homes.” P nRRL umb D er at s,ab ad ase dresse - Ths, e P dRRL ates D oat f b ab irt ase h an is dan So o cp ial t- iSec n co ulri lab ty o nru ati mo bn er am s, is on rem g po uv bed. lic r (2 eti ) rJem PM eA nM t p h lan as spo put n pso riv rac s, y th p e ro Et B o RI co an ls d fo tr hie ts r N ese atio ar n ca h l er Asso s inc p ia lac tio e. n o Rf ese Go ar vernme chers a n rt e D oe b fi lin ged ated Cotn ot ri ub se uti th oe n d A at dm a so inils el try at fo or rs. ap Tp hre ov ded atab rese ase ar in ch cl u an dd es ar de ato a bfr lio gat med twn oo h tu tn od rr e ed -identify Key findings in the new report include: ei an g yh itn yd -o iv n ie du 4a 5l7 r(b), epr ese 401 n (t a), ed 4 in 01 t(k) he ,d an atd a. 4 (3 03 ) (b) JPM dA efi M n ed doe cs on no tri t b al ulti ow ont h (D e C p ) u p b lan licati s oo f n o v oer f an 2.y 4 im nfio llrm ion ati sto at ne, ab co ou ut n an ty, c in itd yi,v an idu da l or • In this sample of public-sector DC plan participants where a loan option is available, 10.9% took a loan in the year studied. sub entid ty iv . iA sin oy n d gat ov a ernme point n in tc em ludp ed loy in ee an s w y p itu hb $ li1 c6 a6 ti o bn il lb io ase n in d asset on cus sas tom of er year dat-a end ma 2 y 0 o2 n 2 ly . r eflect aggregate information. (4) The data The likelihood of a participant taking a plan loan increased with age through their 50s then declined, while household income ar e stored on a secure server and can be accessed only under strict security procedures. Researchers are not permitted to did not appear to have an impact on the likelihood of taking a plan loan. The percentage who took a loan increased C expo hase rt D th at e a d-at JP a M ou ot rsi gan de C oh f ase J.P. Ban Mork, gan N. A Ch . ( ase' Chase) s (JPserv MC) es sy6 st 6 em mis. ll iT oh ne Us.y Ss . th em ou seho comp ld lis es wi wi th t h a al br lo Jad PM rC an In gf e oo rm f fi ati na on nc T ial ec serv hnolio ces gy Risk substantially with credit card utilization, as 6.9% of participants in households with no outstanding credit card balances took a i M nc an luag din em g c ent hec r ki equ ng,i rsa em vient ngs, s ifn ov r es th te mm ent on s, it c orri edi ngt an cad rd sec s, an uri dt y lo o an f d s. at Ca. h ase’ (5) J s Psc M al Ae M an pd ro wi vid des e rv eac aluh ab al le loiw nsi s g fo hr ts a tc o o p m op lirc ehensi ymaker ve s,v iew loan compared with 19.8% of those who have outstanding credit card balances equivalent to 80–100% of their credit card o bf uh sio nu esse seho s lan d fi dn fi an nan ces. cial In p trh oifs essi anal on yal sis, s, t b h u e t C th hese ase id nat sig a h sam ts can ple no is t rc es om trie ctat ed th to e t e h xpense e househo of clo dn s sume in 20r 2p 1- ri 2v 0 ac 22 y. w W he o tu ak se e C ev hase ery as limits. p th rei ecr au pri tim on ary to b ensu ankirn e gt ih n e sti co tu nti fio dn enc , an ed an th d ei sec r to utri al t y h o of u o se uh r o ac ld c o spen unt d hio nlg d er ths' ro p uri gh vat ale l p in afy o m rm ent ati m on ec . hanisms (select credit and debit • Among those with a new DC plan loan, health care spending was the most likely to have increased, as 58.5% of households card transactions, electronic payment transactions, check and cash payments) and sources of income including wage income, where a participant took a loan saw their spending on health care increase by more than 10% in the year they took the loan. Social Security, annuity, pensions, etc. can be linked to the EBRI # / I C # I Database. For more information about Chase, visit the This was followed by travel (22.4%), entertainment (19%) and non-specified cash spending (18.9%). Comparing the spending following website: https://www.chase.com/digital/resources/about-chase. increases by categories with those who did not take a loan, only health care spending showed a higher likelihood of having increased by more than 10% among those taking loans. Otherwise, spending changes were very similar between households About EBRI with or without a plan loan. The Employee Benefit Research Institute is a non-profit, independent and unbiased research organization that provides the • Spending increases on health care were more prevalent among the “financially stressed” households whose plan participants 1 most authoritative and objective information about critical issues relating to employee benefit programs in the United States. Chase serves nearly half of America’s households with a broad range of financial services, including personal banking, credit cards, mortgages, auto were ages 50 or older, as 63.3% of the households where a loan was taken had this increase compared with 56.8% of the financing, investment advice, small business loans and payment processing. For more information about Chase, visit the following website: The organization also coordinates activities for the Center for Research on Health Benefits Innovation, Financial Wellbeing households where a loan was not taken. https://www.chase.com/digital/resources/about-chase. Research Center and Retirement Security Research Center and produces a variety of leading industry surveys during the year. • In an alternative test, the share of total spending that each category represented was compared between the year prior to 2 This number represents the number of households shared with EBRI to conduct the analysis. In this analysis, the Chase data sample reference herein is For more information, visit www.ebri.org. t res he trilct oan ed tio n t c he id enc hous e eh an old ds tin he 2021 loan -2022 year who to us see e C ha if s an e a y s c th at eie r g pr o im ry ar spen y bank diin ng gi ns sha titu re tion in, ca reased nd their b tot y a m l hous ore eh tho an ld sfi pv en e dp ing erc th ent roug ag h e allp pa oi yn m ten s. tT he mechanisms (including select credit and debit card transactions, electronic payment transactions, check and cash payments) and sources of income spending categories most likely to have seen an increase in their share of total spending of this size were unspecified cash A incl bo udi ut ng J. w P.a M ge o in rcom gane, A S sset ocial M Sec an urag ity,em annu ent ity , pensions, etc. can be linked to the PRRL Database. For more information about Chase, visit the following spending (24.9% of the households), health care (23.3%) and housing (21%). website: https://www.chase.com/digital/resources/about-chase. J.P. Morgan Asset Management, with assets under management of?$4.0 trillion?(as of 9/30/2025), is a global leader in • Only housing spending and unspecified cash spending had higher likelihoods of share increases for those taking a loan vs. 3 Data privacy and contractual relationships with recordkeepers have been carefully protected. investment management. J.P. Morgan Asset Management's clients include institutions, retail investors and high net worth those who did not. Otherwise, the likelihoods of the changes in the shares of spending in each of the other categories were individuals in every major market throughout the world. J.P. Morgan Asset Management offers global investment management similar between the households or less for the households with a participant taking a plan loan. in equities, fixed income, real estate, hedge funds, private equity and liquidity. For more information, • Households who started mortgage payments in the year of the loan incidence analysis were more likely to have taken a plan visit:?www.jpmorgan.com/am. loan than those who did not start mortgage payments in that year — 15.6% vs. 10.7%. This was true for households with plan participants of all ages. Looking at this correlation in the opposite direction, the percentage of those having a new mortgage