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Comprehensive study highlights the need for improved plan design and participant support to help with retirement security
J.P. Morgan Asset Management today released its "Retirement by the Numbers" report, revealing that anonymized Chase household data showed that 48% of plan participants carry credit card debt, which increases their likelihood of taking a loan from their retirement plan.1 High credit card balances are also associated with lower contribution rates and smaller account balances, reducing retirement readiness by up to 40% for older participants. This year's research draws on data from 16,000 defined contribution plans and more than 12 million participants from Employee Benefit Research Institute participant databases, and spending patterns from over 5 million select de-identified Chase households.2
"Financial health matters, and the financial pressures outside of retirement plans directly affect savings behavior and long-term financial security," said Michael Conrath, Chief Retirement Strategist at J.P. Morgan Asset Management. "Our latest "Retirement by the Numbers" research provides actionable insights to help sponsors design plans that reflect how participants actually save and spend. Since defined contribution plans continue to serve as the primary retirement vehicle for many Americans, it's important for plan sponsors to align plan features with real-world participant behaviors to help drive stronger retirement outcomes."
The research also uncovered that the average retiree spending gradually declines by more than 30% between ages 60 and 85. Spending can fluctuate dramatically from year to year, with 60% of new retirees experiencing annual changes of 20% or more. The study further revealed that increasing contributions by just one percent starting at age 25 can help fund nine years of average Medicare-related expenses.
"When it comes to retirement plans, there is no one-size-fits-all approach. Average income replacement needs can vary widely depending on pre-retirement salaries and Social Security benefits received," said Sharon Carson, Retirement Strategist at J.P. Morgan Asset Management. "These findings highlight the importance of flexible, personalized retirement solutions and challenge conventional thinking around static income replacement rate assumptions."
Nearly 70% of defined contribution participants are invested in target date funds, underscoring how much retirement success is guided by the design and discipline of the glide path guiding those investments.3 The "Retirement by the Numbers" research reflects J.P. Morgan Asset Management's commitment to continually test and refine the SmartRetirement target date fund suite glide path to help as many participants as possible retire with confidence and sustainable income.
"Participant behaviors are critical in shaping retirement outcomes but they are only part of the equation," said Dan Oldroyd, SmartRetirement Portfolio Manager for J.P. Morgan Asset Management. "This year's findings reconfirm that investment design alone cannot make up for low savings rates, and thoughtful plan features are essential to supporting long-term outcomes. SmartRetirement continues to strive to deliver successful participant outcomes by integrating participant behaviors with forward-looking Long-Term Capital Market Assumptions, but the greatest impact comes when investment strategy is paired with disciplined saving."
"Retirement by the Numbers" helps plan sponsors and advisors create actionable strategies to help increase the odds that participants are able to achieve the replacement income needed to retire securely. For more information and to access the full "Retirement by the Numbers" report, please visit its dedicated website.
1 Select de-identified Chase credit card data, age 25-65 (2016-2024).
2 Please note: While JPMAM intends to have access to the JPMorgan Chase & Co. businesses referenced above, certain internal policies, laws and regulations may limit the depth of or access to information from our affiliates.
3 According to the Investment Company Institute (ICI), 68% of 401(k) participants in its database held TDFs at year-end 2022 (ICI, April 2024, page 30). With approximately 70 million participants in 401(k) plans (ICI, 401(k) Resource), this equates to over 40 million people invested in TDFs.
About J.P. Morgan Asset Management
J.P. Morgan Asset Management, with assets under management of $4 trillion (as of 9/30/2025), 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. For more information, visit: www.jpmorgan.com/am.
About JPMorgan Chase & Co.
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 $4.6 trillion in assets and $360 billion in stockholders' equity as of September 30, 2025. 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.
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SOURCE J.P. Morgan Asset Management
