The New Finance Of Longevity

Guide To Retirement

Analyzing key issues impacting retirement planning in 2021

A new study from J.P. Morgan Asset Management examines the most significant issues impacting retirement. To view the full 2021 Guide to Retirement, click here.

NEW YORK, March 10, 2021 /PRNewswire/ — J.P. Morgan Asset Management today released the 2021 Guide to Retirement, examining the most significant issues impacting retirement, including current challenges and opportunities and the tools needed to support planning conversations.

“The pandemic-impacted 2020 has caused many individuals to reflect on their retirement goals, so it’s more critical than ever for advisors to understand and act upon the complex issues that will drive or derail retirement planning objectives in the year ahead,” said Katherine Roy, Chief Retirement Strategist, J.P. Morgan Asset Management. “Our 2021 Guide to Retirement considers a number of timely themes impacting those planning for retirement, such as managing lower expected returns for those closer to retirement, the importance of diversified investing, and tax management strategies.”

Below is an overview of five key retirement themes featured in the 2021 Guide to Retirement:

1) Managing lower expected returns for those closer to retirement

  • The pre-retirement rate of return assumption has been lowered to 5.75% from 6%.
  • Households closest to retirement who are most reliant on their retirement savings need to carefully navigate their final savings years.

2) How to diversify investments to and through retirement

  • With cash paying nothing, investing is key to long term retirement success.
  • More diversified investing within both equities and fixed income results in better outcomes.

3) Making the most of record savings in 2020

  • While fiscal stimulus was a driver, reduced spending also played a key role in 2020.
  • Opportunities to identify costs that people didn’t miss, to spend less to save more.

4) Tax planning not just for today, but for the future

  • Income taxes will rise in 2026 when the Tax Cuts and Jobs Act sunsets.
  • Careful planning with Roth options and Health Savings Accounts to achieve healthy income tax diversification should be a priority.

5) The ‘New Retirement’ – sooner than planned?

  • The effects of the pandemic may lead to changes in retirement timing.
  • Making informed Social Security claiming decisions remains a priority.

J.P. Morgan Asset Management serves millions of DC plan participants, offering industry-leading insights such as the Guide to Retirement, Guide to the Markets, Long-Term Capital Market Assumptions and spending and saving research in collaboration with the Employee Benefit Research Institute (EBRI). The firm also provides a one-stop-shop of digital tools and resources including Target Date Compass®.




About J.P. Morgan Asset Management
J.P. Morgan Asset Management, with assets under management of USD 2.3 trillion (as of 31 December 2020), 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.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $3.4 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at
J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co., and its affiliates worldwide.