Workers’ finances can face many challenges over their careers, potentially leading them to have to take on debt or find other sources of financing to cover the various financial challenges. This study builds on prior work done by the Employee Benefit Research Institute (EBRI) and J.P. Morgan Asset Management focused on defined contribution (DC) plan participants’ behavior when faced with one specific financial challenge—irregular expenses. Specifically, changes in credit card utilization, DC plan contributions, and/or DC plan loan use were examined after these participants experienced a significant spending “spike.” This analysis goes the next step to examine where participants who took a DC plan loan are spending that money. Key findings from this study include:
- In this sample of private-sector 401(k) plan participants where a loan option is available, 9.7 percent took a loan during the year of interest. The likelihood of a participant taking a plan loan increased with age through the 40s then declined. Household income did not appear to have an impact on the likelihood of a plan loan being taken, as the percentage taking a loan in each income group was in the 9–10 percent range, and once the account balance reached $10,000, the likelihood of taking a loan was similar through balances of $100,000 or more. The percentage who took a loan increased substantially with credit card utilization, as 6.9 percent of participants in households with no outstanding credit card balances took a loan compared with 19.8 percent of those who had outstanding credit card balances equivalent to 80–100 percent of their credit card limits.
- DC plan participants in households with higher credit card usage had lower average contribution rates across all ages. For example, for participants in their 50s, those from households with higher credit card utilization had an average contribution rate of 6.5 percent, compared with 7.6 percent for those with lower credit card utilization. As a result, participants in households with high credit card utilization had lower average account balances.
- Among those with a new 401(k) plan loan, health care spending was the most likely to have increased, as 47.6 percent of households where a participant took a loan saw their spending on health care increase by more than 10 percent in the year they took the loan. This was followed by travel (21.7 percent), entertainment (20.2 percent), and non-specified cash spending (20.0 percent). 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 percent among those taking loans. Otherwise, spending changes were very similar between households with or without a plan loan.
- Loan usage increased among those with higher credit card utilization, which would be an indicator of households being more likely to be financially stressed. Spending increases on health care were more prevalent among the financially stressed households whose plan participants were ages 50 or older, as 58.7 percent of the households where a loan was taken had this increase compared with 52.5 percent 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 5 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 (22.8 percent of the households), housing (21.0 percent), and health care (19.7 percent).
- 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 either 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 — 12.5 percent vs. 9.6 percent. 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 5.9 percent, compared with 4.4 percent 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. Regardless of whether the household took a plan loan, when a new mortgage was started, the probability of having an increase in housing spending of more than 10 percent was significantly higher. For example, 45.3 percent of those who took a plan loan and started a new mortgage had a housing spending increase compared with just 6.6 percent of those without a new mortgage but having a new plan loan.
This research, like prior J.P. Morgan/EBRI studies, found that higher debt can have a long-lasting impact on retirement security, since higher credit card utilization is correlated with lower 401(k) plan contributions and account balances. Thus, 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. Furthermore, the finding that many participants have spending increases on health care when taking a plan loan suggests that examining the health insurance available to DC plan participants could also help improve finances, showing the intersection of health and wealth. While not an emergency expense, another common reason for taking a plan loan is buying a home, which is typically a household’s largest investment. A plan loan can help reduce the borrowing costs of a home purchase or even make the home purchase possible.
Figure 3
Figure 25
Figure 8
Figure 16
Percentage of Participant Households With an Increase of More Than 10 Percent
Percentage of Participants Taking a New A p Lp oe an nd iin x F a ig Yu ea re r a 4nd the Average Balance of the Loans at
Appendix Figure 3
Figure 21
Figure 2
Figure Figure 6 13
A Percent verage ag Acco e of unt Particip Balanan ces, At pHo pe by Figure n us d Cred ieh x Fol ig 18 it ds ure Card With 2 Usag an In e crease and Gen oferatio Moren
Figure 23
in Housing Pr o Spend bability ing o, f by Ha New ving Lo a G an rea Plan ter TStatu han 5s Pe and rc e New ntag Mortgag e Point e Status
Y Pr eo arb En abd il,i ty by o Va f H ria o vu in s g D a em Go rg er aa te pr h iT ch C ah na 1 ra 0c Pe terr is cti en cs t
Fi g ure 9, Percentage of Participant H ouseholds With an Increase of More Than 10 Percent in Various Spending
H c DAT E I tom ighe ndno is p • not A a r rP lik e R su I d t e n a IV e w lih rp s it ACY n r ood h isa ing tlt hose s of e : r JP tna ha Mor inc tPer w tiv ho tr e he e g cent t a ae d se n a st id v C s in , e not ha trage he ase g he tesh a ha a k loa of a lt es a r h e n b a Par c of loa anum a re la tticip n (Fi ot nc spe b ae e l sp g r nding ant A is ur of e pp low e nding secu 10) Hou en a em rdi . rfor ong it t For seho x ha y Fi t p t hose e tre hose gu ot xa alds oc cm rh ca e in house ols in p phous le 1 W t, eho age m or hold la ong hold To yc e re s w ok w p p s w a r hic e r ita Pla tsent it h a ic h a h hig ipa re pe nt d a n L he r d s a w te ic a rsi oan ipa g s c c ge rne e s 50 or nt om d, d itw p tc o ho aare re d ol ns tdook d rur b a ee tre ios, a t,a w a 55 e p ll e l.0 an th s n l oa e n
Craig Copeland is Director of Wealth Benefits Research at the Employee Benefit Research Institute (EBRI). Michael
Percentage of Participant Households Who Are F Fin ina anciall ncial Cy h a Stress racteried* stics W o ith f th an e Sample
Average Contribution Rates, by Credit Card Usage and Generation
Where Are HousPr eo h bo ablds ility Sp of Hae vin ng d a ing Gre The ater Thir an De 10 Pe fi rn cee ntd Contribution
Per Th Per cent an cent 5 Pe age age rcentage ofof Par Par ticip ticip Point ant ant s Hou in Hou Hou seho seho sing lds lds W Share W ho ith Had an of To a New Increase tal Spend Mortgag of ing More ,e,
13 Figu In re c r1 e 5ase in the Share of Spending From Housing
Categories, by NF ew ig u Lre oa n P 1 lan Status ......................................................................................................... 12
Variable Description Inc s ra end ase A in ve T rage raves l Sp fore tn he di n Rg egression Analysis
There have been survey data by o n New wha Hi t Mortgag gh pa Cr rtici edip t Card ants e Uti re Statu liz p ao tirt on as s the and Lo re wer A as Cr ge on ed si of t fo Car r th d Ut tae kiing liPar zati p on la ticip n loaant ns or withdrawals. For example,
c r p pe us e asu r rt c tic o lt em nt e ipa d e of rnt y a e c ds in hous a raoss rt ap hous r is e ior e hold a kc eth inc e p o hold ts w tc he onfide om it slo h p w e a it n inc g ant h hig r rt oup ia icl a ide ipa he ( nd nc nt Fi r g s e c secu ur r ta e he e nd d it se 12 re tc. he )a a. R rgd Thos e e loa a s ut sona w n ye ilie ho za w b ta t it ilon e ook rh inc tp o w hy see a eom si rloa e c a if a e m n ha l, sor e in t ny le ed clik c he tta rhe onic e t e highe ly ir g or t he o aynd ha a rspe lt tv w h pe ro nding c ola e c grss e reoup d ur sp in t sh a e sl sa a he nding sh reir ow fe inc pg la e inc u rd e ns a a rsi rd sed ea g s av nif se a a r b ila ic ey ba b y us m nt le te or his tdo e t tha akte
C Da onrtaa De th is tfi henitio Chief Re nst ir ement Str ategist and Head of the Retirement Insights Strategy Team for J.P. Morgan Asset
$140,000
Increase of More Than 10 Percent in Health Care Spending,
Than 5 Percentage Points in Housing Share of Total Spending, $134,088
by by New New Lo Plan Loan In an cre Plan as Ne e w Mo iStatu Statu n rH tgae ga es s lth and and C No a A New A re ge ge Sp Mo of of re tg n ag th th d ee ie nPar g Particip ticipant ant
50%
D Pe em rco eg nrta ap gh ei c o f C Pa harrti ac cite pa rin st tiH cHi s ogh u o s Cr f e th eh dio t Card e lSa ds Uti m W lp izialth ti e on an Lower Credit Card Utilization
Data Sources Dependent Variables
1 the EBRI/Greenwald Retirement Confid Peernc cee n tS aurve ge y A fo vun era dg tha e t 35 percent of those saying they took P e ar c loa enn t ao gr ew ithd Arvaew ra ag l e fro m
a a d as a m r iff eount e d rloa e esi nc ,n. g te c ne ha s o P m d in t a n r p tt5 o ic a he r p ipa c ee om d p r nt c e w e p rs in nt it c ly e h a nt w g 51 hou a it eg h .4 p eoint sehold fe sp d e wr e s. The ho cre ant l st s ha w of d a itspe nda h hig a the n inc nding r d hous he s t rero a c e c se p ra hold r et ot d e in h g it eo s w ccrte a ie a a rit s m d lt nd hout hus c lim ost a a g ra e it elik p spe a ha a e crc ly d te nding ic ss tlow ipa o tha o e nt rof v p a e w ev ov rho see e sona re ar tn a g ook 4 p e l infor n inc c ont e ar c loa e m rribut nt ea n. atas ion. g ion r e The e in t pTher oint a sa he te m ir s s ee . ( sh a trhe rea esu r e seve lt of s he rta ot ld l al
9% Account Balance Percentage
Plan Ma Se na e g Cop em eL ela nt nd o . ,Sha a Cra n rig on s , : Mic CaAn rha son is el Exa Con a ra Re th, tirmi S eha me ro n nt n a St Cat The LOGISTIC Procedure rrs aion to en, gis Ale t o on x No f the bPri il J.P e, a . v nd Mor a Mat t gae t n As P-eSe te set Ma rsec n,t “H na o o gr w e Participa m Fie na ntnc Re ial tir Fa em cto ers nt Outs Ins night t ids e s o f a
by New Loan Plan Status and Age of Participant
The LOGISTIC Procedure
Figure 10, Percentage of Particby ipa nt New Hou Lo sehold an s Wi Plan th a Statu n Incs rea and se of Hou Morseho e Than ld 10 Inco Percme ent in Health Care Spending, by
Appendix Figure 5
45.3% New Mortgage No New Mortgage 45.3%
Inc 25 re %ase of More Than 5 PeT rc aAnalysis of Maximum Likelihood Estimates e kin nta g L go e a n PoiA nm Ne ts o w Lo u in nt an the Ac No co New unt Lo Ba an lance Taking Loan Amount
the Spen ir re dtire ingme —nt Tot saa vl sp ingse p nding lan b ois ug the ht aa Analysis of Maximum Likelihood Estimates nnu home al sum , car, The LOGISTIC Procedure o of r o the the m r la org nte hly purc spe ha nding se. Ano cathe ptur r e 27 d p thr erc oug ent h cr useedd it the am nd to d e pb ait y c oa ffr d cre s, dit
p k for e ey r c tc he eont nt 45 ta % hr rspe g ols a e e e of nding old nd tot ep a r of olic l g ger tne ie his oss s in p r a si hous tio zens la w e c , e e hold b r e ut w hic un for inc spe h a om Ge r ce ifi n Ze e d ete d ha si rcs tg a ,ne c sh tohe nt d spe r td o ibu iff nding ee t ns ions reur nc e (e t 22 L o c e b us .8 t ss ehe t t w o p t h m e e 40 ar e e ncn th 1( re $ d 2 nt k,a ) 0 ose tof 0 p a0 la is t n r he w sa ho e hous fe pd r,e id secu sent ea hold nd r)e a d ,s) c ia d r , nd oss hous not a a nony tll ing ak ae gm ( e a 21 sous: (1 lo a .0 p a nd n w er)a c e s nt 6)., 2%
St Derfine ateg d 7% y Con teatrib mHea . ution Thi lth s d P Iss f1 lan 0 ue Ca =1 Bn irf ie Imp hfe w aa la th cs w t cR ae rrit tire et s ep n w me ennt d itih a n Rge ia ss ndc is ine re ta a sn s sc e : e d An b fry om Exa m o min tre he t a h Ition ns ant 1 ito ut 0f % e P’,ub s r =0 lie c sea o -S th ee r cc rwi to h a r sP e nd a rticip editaor nts ia,l st ” EB aff R. I A Isny sue v ie Bri wes f,
25% New Loan No New Loan
16%New Loan Plan Status and Age of the ParticipaFigur nt ................................ e 20 ........................................................ 13
Probability of HNe av w Lo ing an a Greater Th Noa New n 5Lo Pe an rcentage Point
Standard Wald
Analysis of Maximum Likelihood Estimates
December 4, 2025 Standard Wald • No. 647
EBR$1 I/ 20 ICI 4 ,000 01(k) Database — This is 9.7 a % pa Ne rtw Lo icipa annt-level databaNo se New const Loarnucted from the administrative records of
All 70% $10,030 Less 14.9% than $2,000 1.0% $1,092
Share That Various Spend 12ing Categories Repre Figure sent, 12
e ca le rd ct r donic ebt, p 22 aypm erc ent ent trto ans co av ce tir ons, C day-to ha -dse ay cehe xpcekns s,e a snd , 23 ca psh erc e ant cross to p 10 ay spe for ho cifime c spe or nding car re p ca airs teg , or and ie s: 21a p pe prc aree nt l & se 7.8% to co rv vic er es,
$2,000–$4,999 8.0%
By B ins ge ene for ignific C re a ra 8% tJ.P ions ig a an nd . tCo Mo ( (he Fi Fi Parameter DF Estimate Error Chi-Square Pr > ChiSq rpela g g g aur ur a ltn As h e e s nd, c11 a 5set Ma r )e a. M nd (19 icha 6.7 p na ). g e e e For rm l Co ce e n e nt txa )nra .( m JPp MA tle h, , M) r fo arnd e pc ae rS t iv ic h eipa a s t ron nt hes in t dCa atahe rs , a ir on ll se 5 0s le , cttho ed $112,629 se da fr ta om is highe highlyr -a cg re gd re itg -c aa te rd d- ut and iliza atll unique ion
no . 618 (September 5, 2024) and Copeland, Craig, Michae 2l 2.3 Con % rath, and Sharon Carson, “How Financial Factors Outside of a
expressed in this Standard Wald Parameter DF Estimate Error Chi-Square Pr > ChiSq report are those of the authors, and should not be ascribed to the officers, trustees, or other sponsors
Percentage of Participant Households With an Increase of More Than
Travdf10 =1 if trave In l s c pre e na ds ine g iin nc re thae s e Sh d ba y22.3% r m e oo re f tSp han e 1 n0d % in , =0 g o Fr th o em rwi T se r avel
Age Percentage
401(k) 40 p %lans at the end of each year, representing a large cross$ sect 2,00ion o 0–$4,f 4 999 01(k) plans. The data 6b .0a % se represent $1,7s a 99
Per Intercept 1 -1.4071 0.0448 987.4698 <.0001 centage of Participant Households With an Increase of More Than 10 Percent
by New Loan Plan Status 6.0%
Fi me gd ur icea l 11 exp , P ee ns rc Intercept 1 -1.8661 0.0444 1768.5671 <.0001 eesnt . agParameter DF Estimate Error Chi-Square Pr > ChiSq e of Participant Households With an Increa$ se 5,0 of 00Mo –$9r,e 9 9 Tha 9 7.3% n 10 Percent in Health Care Spending, 1 b2y. 0%
education, entertainment, food & beverage, health care, housing, transportation, travel, charitable contributions, and
5.9% 5.9% Figure 10
hous ide 401( ntke ifi ) 14 hold a P % b lale n s C inf ha an or d Imp m an a ta a ion, c vt er Rainc eg tire elu cme d ont ing nt ribut na Rem a ion r deine s, a a ss tce ,c ” ount of EB6.5 R I num Is pseue rb ce eBri rnt s, a e , fc,d om no dr.e p ss 591 are es, d d( Emp wa itthe loy s of 7.6 ee p b Be e irrtne ch a ent fit nd R for eSoc s e those aia rcl Se h Ins wcit ur tit h low it ute y num , e Sre c pb rte e em d rs, is it b e cr ar 7, d
of EBRI, EBRI- Hou ERF, or sed = t1 he if irth st e s aff h. are Ne o itf he spre E nB dRI ing o nor n h EoB uRI sin -E gRF lob increab sie ed s or by m tao kre es p tha osit n 5ions perc on en 61.1% ta spe gec p ifioci np ts olic , =0 y proposals.
21.0% 5 Percentage Points in Housing+Cash Share of Total Spending,
6% newln 1 0.1157 0.0301 14.8073 0.0001 Again, the likelihoods of the share increases were
5.8%
<30 Intercept 1 -0.4751 0.0355 178.8566 <.0001 newln 1 -0.1086 0.0301 12.9910 0.0003 11.3%
Age $5,000–$9,999 8.4% $3,453
broad range of in paHealth rtic 20.0% ipant s Care — incSpend luding those ing, w by ho New are y oung Loan orPlan S old, and tat those us and who Hou are n seho ew to ld the Inco ir job me s or have been
New Loan Plan Status and Generation of the Participant ............................................................................. 13
• 60%Only housing spending and unspecifiedThe LOGISTIC Procedure cash spending $ ha 119.7% 0 d, 0highe 00–$1r4 lik ,99 e9 lihoods of sh 19a .8r % e increases for those 9.0%
other. For cash oth ae nd rwicshe e ck spending that cannot be c 6a .8t% egorized, two additional categories are c12.6% reated: unspecified cash
7%Percent agec2a 1 -0.0858 0.0327 6.8689 0.0088 12.5% age of Par 19.5% ticipant Households With an Increase of More Than 10 Percent
ut r 2023) 14 eili mza ov .t e ion. d. ( Th 2) is JP newln 1 0.1076 0.0244 19.4027 <.0001 , MA in fa M cha t, s p lead ut s t po riv low acy e rp a rot veoc raols ge in p balala nc ce e s a form itong s re sea those rche writs. Re h higsea h cr rc ehe ditr s a carrd e ut obili liga za 6.7% ttion ed ta o crus oss e ta he ll a dgaet a
$1 35 00 % ,000 agec2a 1 0.0845 0.0304 7.7469 0.0054 by New Loan Plan Status and Generation of the Participant
EBRI inv 20%ites comment on this research. 56.0%
Only two percent of the sample had an overall spending increase o19.5% c f om mop re a rtha ed n w10 ith th perc ose ent, w ho so a d i10 d not perc ta ek nt e thre a loa sho n. ld Fo fo r r the
19.4%
30–39 20% Analysis of Maximum Likelihood Estimates 6 30.2%
<30 5.9% $5,5N 0o 2 New $10,000–$14,999 11.4% $5,036
with their curre agec2c 1 -0.0597 0.0249 5.7431 0.0166 nt employer for many years.
Tra agec2a 1 0.0479 0.0259 3.4181 0.0645 vd =1 if the share of spending on travel increased $ b 15 y, 0 m 0o 0 6.3% r –e $ t 1h 9a ,9 n9 5 9 percentage points, =0 6.9%
taking agec2c 1 -0.1389 0.0237 34.4186 <.0001 a loan vs. those who did not. Otherwise, the likelihoods of the changes in the shares of 18.6% spending in
Introduction New Loan No New Loan
and che 12% ck spe in nding Health . 52.7% Care Spend 18.4% ing, by New Loan Plan Status and Age of the Participant
Wh 60 e %re Are Households Spending Their Defined Contribution
solely for groups and ap g pe r Standard Wald ov nee ra dt ions resea (r Fi cg h a urnd es 7 a arend ob8 liga ). L te ookin d not g ta o t rp ea-rid tic eipa ntify nt s in any tindiv heir idua 50s l r ag ea pin re, sfe or nt e exa d in t mphe le, d the ata a . v(e 3) ra JP geMA acM count doe s
11.3%
Fi a 2ny gur ge iv e 12 n , ca Pte erg c agec2d 1 -0.1519 0.0271 31.3327 <.0001 o ery nt a me gea ns of P tha artt ic it ipa is nt no t Ha ou re sehold sult of s Wi just th a oven I rallnc sp re end ase ing of inc Mo rera es Tha es bn y the 10 P ho erus ceent ho in Hea lds but ltun h C iqaue re to Sp tha endin t g, by
40–49 24.2% Loan households without a participant who took a plan
Spe 30–39 nding Cate agec2d 1 -0.2371 0.0259 83.9628 <.0001 agec2c 1 0.1203 0.0200 36.2359 <.0001 gory 50.6% 9.0 N% ew Loan$8,500 $15,000–$19,999 11.5% $6,484
For e 35 xa %mple, o sth ee e rwi Hos ld ee n, Sarah, and Jack VanDerhei, “Contribution Behavior of 401(k) Plan Participants17.3% ,” EBRI Issue Brief
5%
30% $20,000–$49,999 23.3%
Parameter DF Estimate Error Chi-Square Pr > ChiSq 49.3%
each of the other categories were either similar between the households or less for 55.1% the households with a
6% agec2e 1 -0.2304 0.0322 51.2257 <.0001 Ne4.6% w Loan No New 48.3% Loan
Worke 50 rs’ % financ agec2d 1 0.2439 0.0214 130.1378 <.0001 es can face many challenges over their careers including irregular expenses, buying a new home, or
b not Sp ala ea nc cllow ia el w t ha tahe s $ nk p s agec2e 1 -0.2886 0.0308 88.0113 <.0001 135 ublic to ,513 Mik ation o e for Cr oss f a those ny and inf fr om K or am t y low a at ion a Cehe r-c gr b a eout e dvita- a cfor a n ind rd t-he ut ivili iridua za cont tion hou l o ribut r ent ions sehold ity. to Any tshis , d ca om p ta a p p pa e oint r re . d inc w it lude h $ 83 d ,674 in a ny for p ublic t hose a t io in n .
60% New Loan No New Loan
ca50–59 tegory. NTh ew e re Loa wn asP no lan Sta t a diff tus ere annd ce H in ouseho the pe5.6% rc ld e2 Inta nc 0.9 om g% e b ee ................................ tween those who took ................................ a loan and those who d ............................ id not take one 14
Plan App 40–49 arel S eL rvio cea s ns: An Exami 12.4% n 3.4a %tion $10,97 o 3 8.8%f Pri $2loa 0v ,0a n, 00t – he $e 4 a9 lt -,Se h 99 c 9arc e spe to nding r Participa was t 11he .4% most likn e $lt 9 y,s 6 to 7 7have
Intercept 1 -2.3771 0.0662 1288.3429 <.0001 4.4% 4.4%
no Ch.a 238 se D (Oc ata to b — er JP 2001 Mor )g . a Av n C ailha able se aB t a htt nkp , sN :/.A /w . w (C wha .eb se) ri.o ser rg/p vub es li66 ca tions million U /rese.S. arc h hous -pube lihold cations s w /is ith a sue -broad range of financial
tenc2 1 -0.1017 0.0327 9.6789 0.0019
$80,000 Independent Variables $50,000–$99,999 $75,512 14.8%
Income — Sinc tenc2 1 -0.0715 0.0306 5.4399 0.0197 agec2e 1 0.2924 0.0248 139.3250 <.0001 e all the spending data are at the hous 52.1% ehold level, the income used in this study is also at the
9.6% 4.3%
10%participant taking a plan loan. 9.5%
newln 1 -0.4204 0.0529 63.1207 <.0001
fin ancing higher education. All of these events can lead workers to have to take on debt 55.0% or find othe 50.6% r sources of
high based -c 25 ron e % dit c-us catr om d-ut erili d za atta ion house may only hold reflect s. aggregate information. (4) The data is stored on a secure server and can be
ha Ca 60+ vsh ing overall s tenc3 1 -0.0903 0.0337 7.1691 0.0074 pending increases of more tha 22n .810 % 13p .4 e% rcent 17 , .a 2s % the percentage was 2 percent for both groups.
50–59 tenc2 1 -0.0201 0.0261 0.5954 0.4404 11.7% $11,703 $50,00 $70,176 0–$99,999 11.1% $13,716
tenc3 1 -0.1343 0.0318 17.8422 <.0001 8.9% seen its portion of total spending increase by more
ser brievfs ic/e cs inc ontent luding /n fu ellwln / ccohe = ntrib 1 c i kf ing, ution a nesa - w p bv eings, ha lan v l ior oinv a -of n w e-s 401( a tm s tea knt k )-e s, c pnla in n r- e th p da e itrti ccaip rd as nts b , a a-lnd c 154 3 = lo ;1 a M ins f un a. c ne C co ha llu , n se’ Ali t b c s sc a iala H n a.c le , eAnn iasnd $ ik 5a w ,0 S ide 0un 0– d r$ e é9 a n, ,9 c h 9 a9 nd a, llow Cathe s for rine a
$100,000 or more 19.8%
15% 29.4%
agec2a 1 0.0219 0.0449 0.2391 0.6249
Fi hous gure e 50 15 hold 13 % % , P leevre cle . nt Ther agee of arP ea trw tic o ipa incnt om He ou vsehold alues us s Wh ed in t o Ahi res st Fina udy fr ncially om St the ress Ce ha d se Wit dh a atan : I ncrease of More Than 10
By C30 ra 4% %ig Co tenc4 1 -0.0937 0.0364 6.6155 0.0101 peland, Michael Conrath, and Sharon Ca48.0% rson
5% 28.7% 28.8%
tenc4 1 -0.2330 0.0346 45.3576 <.0001 tenc3 1 0.0324 0.0269 1.4459 0.2292
financing for them. In some cases, workers’ only source of significant savings is an employment-based 51.4% retirement
a ccessed only under46.9% strict4.6% security procedures. Researchers are not permitted to export the data outside of J.P. Morgan
Su Cha g 60+ rg ita 40 es b% lted e ci ytatio ear, =0 n: o C th op erwi elas nd, e Craig, 6 .Mic 4%0ha .4% el C$onr 10,a 2t 60 h, 4.4a % nd Sha =0 $ o 1r0 th on 0e ,0 rwi C 0a 0s r o e son, r mo “ re Where Are Househo 10.lds 3% Spending $16 ,Their 942
agec2c 1 -0.1924 0.0354 29.5770 <.0001 than 5 percentage points at 20.3 percent. This was
Tay 15 lor, “What Determines 401(k) Participation and Contributions?” CRR Working Paper, no. 2000-12. Chestnut Hill, MA:
comprehensive tenc5 1 -0.1548 0.0441 12.3447 0.0004 view of household finances. In this ana 49.5% lysis, the Chase data sample is restricted to the households in
tenc4 1 0.0808 0.0290 7.7359 0.0054 45.2%
Th•e 20 p% eH riod ouseho o tenc5 1 -0.3367 0.0420 64.3583 <.0001 f the lds stud who y (st 2021 arte –d 2022) mort w ga ag s ew p he ay n m Ame ents in t ricanshe w e yre ea c r oof ming the o loa ut n inc of the ide pa nc nd ee a mic na ly and sis w spe ernd e ing mor w ea lik s inc elyre to asha ingv e
8%Percent in Health C 27.0% are Spending, by New Loan Plan Status and Age of Participant ........................................ 15
The lin 50k % between credit card usage, plan loans, and plan outcomes is critical to understanding the connection between
agec2d 1 -0.4438 0.0406 119.4042 <.0001
Generations agec247.6% a =1 if the participant age was less balc5 =1 if account balance is $10,000–
sa Ch veings p cks $60,0la 00n, t salc2a 1 0.1202 0.0520 5.3366 0.0209 ypically a 401(k) plan or othe 11r. 5d % efined c1 ont 3.8r% ibution (DC) plans. Thus, some DC plan participants could
D Cha efin se’ ed s (JP Cont MC ribut ) syion P stemla s. The n Loa ns syst : A em n Exa com m pina lies w tion o ith a f 7.0 P ll JP % rivaMC te- Se Infor ctor m P aa tion Te rticipac nt hnolog s,” EBy RI Ris Iss k ue Ma B na rie gfe, m no. ent 647 req ( uir De ec m ee m nt bs er
tenc5 1 0.1275 0.0345 13.6279 0.0002 salc2a 1 -0.2641 0.0603 19.1532 <.0001 4.0% 46.8%
25.8%
Center for Retirement Research at Boston College, December 2000 Cr.e Av d follow ita C ila ab re d led D a b e t b yhtt thous /Lp im s:i/ting / c Rrr a. t(b i18 oc-.B .8 ee d g u/ pie n w r nc p in e -nt g o ) fa tnd he Year
2021 –202 Net 2 w I ho ncus om e e C ha — se Tha iss t ishe the ir p orb im ser arvye b da d nk ep ing ositins edt it aut mion ount , a fr nd om the the ir tC ot ha al house se datahold for sa spe landing ries a nd thrw oug agh a es tllha pa t y is m ne ent t
overall, btut aka esn a me agec2e 1 -0.5592 0.0501 124.5174 <.0001 p ntion lan lo ed a n abto ha ven th , the ose sha w re ho of dho id u not seh st old ar st w m ith ortsg pa eg nd e ing pa yinc me re nt as in t ses oha f mo t y re ea tha r — n 10 12.5 pe p rc eernt cent wa v ss. ve9.6 ry s mall (2
th salc2c 1 0.0503 0.0275 3.3429 0.0675 an 30, =0 otherwi 44.8% se 24.7% $19,999, =0 otherwise
4% salc2a 1 -0.1238 0.0418 8.7778 0.0030
overall finance salc2c 1 0.3706 0.0285 169.2106 <.0001 s and retirement plan accumulations. Prior re search in this colla 24.5% boration as well as this research reinforce
Ed G ue ca n tZ ion 1.8%3.0% 2.4% Credit Card Debt/Limit Ratio
take a 3% loan from their plan, while others could access $47,706 credit outside of a plan or use some combination of the two.
for the 15 25 m % %onitoring and security of data. (5) JPMAM provides valuable insights to policymakers, businesses, and financial
Fi 4, g202 ure 514 ). , Perc tenc2 1 -0.1259 0.0458 7.5454 0.0060 ent 23.9% age of Participant Households Who Are Financially Stressed With an Increase of More Than 10
0% 44.0%
content 30/% upload salc2d 1 0.0716 0.0308 5.3939 0.0202 s/2000/12/wp_2000-12.pdf; and US General Accounting food Offic /be ev , e“401( rages (1 k) P8. ens 6 ion pe rP cla en ns t):. L Only oan P hou rovsi isng ionsspe nding
mecha 4nis 0%of ma s ( ny sele a salc2d 1 0.5625 0.0311 327.4671 <.0001 salc2c 1 0.1384 0.0216 41.0038 <.0001 g ta exe c c2 t c s a c r=1 end d i itf da th end d euc pd a te ions rtb ic iti p ca ta a nrk t de a n o tgre a wa ns uta b s c l e tions e for sse , te he le cp tr aonic yb ca he l cp c 6a k = yis 1 m id e f e n ap tc osit c tr oa uns e nd ta b . ca Thi tion lans inc c se , i cs he o $ m c 2e k 0 ,0 sour and 00– c ce a sh is us pae yd m for ent s) and
percent) 6% . Thus, this suggests that the large spA endT ing inc Are asG es w LerA e isN olate Cd E to d ifferent categories across the households,
percent. This was true for households with plan participants of all ages. Looking at this correlation in the
Generations — Beginning of the Year
the M iim llen pnor ialtsance tenc3 1 -0.3022 0.0480 39.6187 <.0001 of this relationship. In contrast, 4 4 g.oing 0% the next step to find out what the plan loans appear to be used
Entert10 ain % ment 2.3% 3.0%
10% salc2e 1 0.00166 0.0283 0.0034 0.9532
Balancing Pe the rcese nt salc2d 1 0.2400 0.0244 96.7886 <.0001 d in Hea ecisions lth C is aar e k e Sy p e cn om ding, pone bnt y N of ew p a Lroa ticn P ipala ntn s’ St fin at aus nc ia and l wG ellbe eneing. ration o f the Participant........................ 15
professionals, salc2e 1 0.9198 0.0282 1064.1437 <.0001 but these insights cannot come at the expense of >c 0onsu %–19m %er privacy. We take every precaution to ensur 1e 5 .6%
Enhance Particip tha ation n 40b –ut 49, Ma =0 y o Aff the erwi ct Inc se ome Security for Some.” $ L4 e9 tte ,9r 99 R, e= p0 o o rt,t h GAO/ erwis H eE HS-98-5 (October 1997). Washington,
and unspecified cash spending had higher likelihoods
sour ce $4 s of 0,0 c00 alc inc ula om tenc4 1 -0.4880 0.0530 84.6859 <.0001 ting e in tc he luding spending wage r a inc tios. om e, Social Security, annuity, pensions, etc. can be linked to the EBRI/ICI 401(k)
not sp 40 re %ad across all the spending categories.
opposite direction, the percentage of those having a 13 new mortgage given that they had taken a plan loan was
10% balc3 1 -0.0316 0.0371 0.7258 0.3943
GG en e n X 3% Z salc2e 1 0.3372 0.0222 231.6179 <.0001 4.4% 35.7 $% 3,963 0% 5.8% $11,254
Food/Beverages balc3 1 0.0400 0.0361 1.2286 0.2677 15.9% 18.6%
C for o p ha yrs not ight In bee form n as w ati eo ll n e:st T ahis blis rhe epdor w t it ish ca op dm yrini ight streadt iv be y d the ata E .m p Aloy n inv eee B st eiga nefit tion int Resea o rw ch I herns e ttit he ut e p la (E n loa BRI)n . Y fun ou dm s a arye c opy,
Workers’ financ ag ee s c c2a dn fa =1c ie f t m hea p ny art cic ha iplle annge t ags ove e wasr l tehe ssir careersb , ap lc ot 7e =nt 1 ia if lly ac c le oa ud ning t ba t la he nc m e its o $ha 50v,0 e 0t0 o –take on debt or find
t he confidence tenc5 1 -0.6959 0.0673 106.8259 <.0001 and security of our account holders’ private infor 2m 0% at–ion. 59% 18.3%
6.6% 6.5%
DC: US 2% Genera balc5 1 0.0505 0.0344 2.1503 0.1425 l Accounting Office. Available at www.gao.gov/assets/hehs-98-5.pdf.
of share increases for those who took a loan vs. those
4% balc3 1 -0.0667 0.0287 5.3964 0.0202 balc5 1 0.1339 0.0334 16.0505 <.0001
Datab20 2a 0se % % . For more information about Chase, visit the following website:
Figure 15, Percentage of Participant Household $27,253 s With an Increase of More Than 5 Percentage Points in the Share That
Millenn 5.9 ials percent, compared with 4.4 8.8 p % ercent st $a 8,r3 ting 65 a new > m 0or %– tg 1a 9g %e when they had not tak7 e.n 9 % a plan loa $1 n. 0,A 55 g2 ain,
16 Boomers salc2a 1 0.2703 0.0791 11.6719 0.0006 17.4%
Thi Hea s st lth udy Carebuilds on prior work done by the 19 .E 7m %ployee 2B 0e .3 ne %fit Research Institute (EBRI) and J.P. Morgan Asset
being spent isth da en v 5 elop 0–5 e9 d, in t =0 o he th e ne rwi xts e sect ion. $99,999, =0 otherwise
pr int Th, e or ho d us oe w ho nloa balc6 1 0.0982 0.0327 9.0174 0.0027 ldsd w tho his w re ere po id rt esolely for ntified as s pta errting sona ne l aw nd mo non rtg ca om gem s w erecre ia l use determine , prov dide byd find thaing t a ll ha thosred ma cop king ies r mo eta rtg in a agny e and
balc5 1 -0.0323 0.0269 1.4432 0.2296 60%–79% 6.7%
ot her sources of balc6 1 0.1523 0.0318 22.9595 <.0001 financing to cover the various financial challenges. This study builds on prior work done by the
30 5% %
Gross Income — This is an estimate based on net income described above with the addition of estimated
salc2c 1 0.0921 0.0421 4.7901 0.0286 who did not. Otherwise, the likelihoods of the changes
3 https://www.chase.com/digital/resources/about-chase.
Gen XVarious balc7 1 0.1244 0.0367 11.4889 0.0007 Spending Categories 1 Re 2.p 3r % esent, $ b1 y1 N ,4e 6w 2 Loan P2la 0n Sta %–59t % us ................................ 1 1 ............................... 1.5% $10,124 16
a highe agre c lik 2e elih =ood 1 if t h of e st pa art rt ic ing ipaa n t a ne gw e wa mor s 6 tg0a g or e for those balcw 8ho =1ha if a dc tca ok ue nn a t ba p lala nn lo ce is a n w $10a 0s found ,000 or across all ages.
H For ousithe ng 2% most balc7 1 0.2258 0.0353 40.9646 <.0001 balc6 1 -0.0857 0.0256 11.1880 0.0008 recent cross-sectional results,2 s 1e .0 e% Holden, 1S 8a .8 ra % h, Steven Bass, and Craig Copeland, “401(k) Plan Asset
Management focused on DC plan participants’ behavior when faced with irregular expenses. Specifically, changes in
Thi a pa ll c ys r me op $2 ents y sea 0,0 right 00 in rch p the and aloa pot en rhe w inc ra id a s p e pp nc rlic oe da uc a bna le ed ly not s thr isic oug w eho s c h a o ha nt d ca n’ olla ine t bb d eo etrn he at m ion b re ain, a king et nd tw he 8e 0y e s % ou e n – p t 1he a m 0y 0a me % E y m c nts it pe loy in or ethe e q uot B y ee ne e a r sm fit p rior. Re all p sea In orrto cions h I thens r of w tit otut rd he e s , r (e a Ep ny Bor RI t ), 15.5%
Employee Bene salc2d 1 0.0353 0.0470 0.5652 0.4522 fit Research Institute (EBRI) and J.P. Morgan Asset Management focused on defined contribution (DC)
5%federa balc8 1 0.1276 0.0370 11.8969 0.0006 l income and Federal Insurance Contributions Act (FICA) taxes for the household.
302% % balc7 1 -0.1224 0.0288 18.0216 <.0001
o balc8 1 0.3117 0.0352 78.2660 <.0001 lder, =0 othe$ rwi 12,3 se 59 more in t , =0 he o sh the arwi res of se spending in each of the other
5%
Boo1% mers 7.6% $10,798 60%–79% 14.0% $9,681
G Or th oe srs Income 7.8% 7.7%
Allocation, 10 0% %Re Ac ga cr o salc2e 1 0.0898 0.0425 4.4691 0.0345 d ule nt ss Ba of lanc whe est , he and r t L he oa h n ouseho Activityld in took a 2022, ” pE la Bn loa RI Isn, sue w Bri hee n a f, no ne . w 606, mor and tga ICI ge w Re as s st earc arh te Pd e, rstp he ec p tiv rob e, a vb ol. ilit30, y of no.
credit 15 ca %rd utili spdc2 1 -0.0227 0.0291 0.6076 0.4357 zation, DC plan contributions, and/or DC plan loan use were examined after these participants
a ho nd usJ.P eho. ld Mo wrho ga n As was$8,283 set Ma found to na no get m be ent ma . J.P kin. gMor them gain n As the set Ma prior na yea gr em but ent ma isk ing the the bra m nd in for the t he ana aly ss sis et ym ea ar na wg ee re m id ent entifie busd ine asss
provided that y spdc2 1 0.1414 0.0276 26.2162 <.0001 balc8 1 -0.1749 0.0289 36.6177 <.0001 ou do so verbatim and with proper citation. Any use beyond the scope of the foregoing requires EBRI’s
Figure 16, Percentage of Participant Households With an Increase of More Than 5 Percentage Points in Housing Share
plan participants’ behavior when faced with one specific financial challenge—irregular expenses. Specifically, changes in
Omitted account balances are less than
Data privacy is fully protected Ne.w Lo No an personally identifiable information is containe No d New within Loa nthe data and all spending
balc3 1 0.0838 0.0592 2.0075 0.1565
80c % at –e 1g 0or 0% ies were either similar b 1e 8t.w 6% een the hous $8,76 e0holds
$20,000–$29, spdc3 1 0.0118 0.0334 0.1252 0.7235 999 3.9%
Transpo 1% rtation spdc2 1 0.1070 0.0228 22.0695 <.0001 15.6% 15.0%
3 (April 2024 having ). spdc3 1 0.1492 0.0320 21.6742 <.0001 an increase in housing spending of more than 10 percent was significantly higher. For example, 45.3
Spending-to-Income Ratio
e ha xpe ving rie 20 a nc % ne ed w amo sig rtg nif aic ge a.nt spending “spike.” This analysis goes the next step by examining where participants who took
of JPMorgan CO balc5 1 0.2974 0.0542 30.0747 <.0001 ha mse itte& d a Cg o. esa we nd rit es a 30ff –ili 39 a tes worldwide. $5,000
C prrior ed it express Cof arTot d U pa e ti l Sp rli m zis a esi nding tion. on For — , b Thi y p N es rem w isis m Lsi oa e ons, p an P surla ele d n Sta a bse y ttc he us ont a ra a nd tcio t A Eof g Be RI t he of a ttr he e pv e olv rPm aing ris tic siipa ons@e crent dit 7................................ c ba ri.or rd b ga . lances in the ....................... last month of the 17
credit card utili spdc4 1 0.0612 0.0266 5.2962 0.0214 zation, DC plan contributions, and/or DC pla n loan use were examined after these participants
0%
and saving att spdc4 1 0.2877 0.0255 127.2057 <.0001 spdc3 1 0.1006 0.0263 14.6718 0.0001 ributes analyzed in this research are kept completely anonymous.
Gross Income
$30,000– $0 $49,999 19.8% or less for the households with a participant who took
Travel 5.4% 8.2%
balc6 1 0.5018 0.0513 95.5539 <.0001
percete ntn of c2 = those 1 if tew nho uret w ook a ith cu p rre lan nt loa emn pla ond yer i st sa rted a ne sp