Retirement Insights

Guide to
Retirement
2025
Page reference GTR 2

Retirement Landscape Spending Social Security/Health

3. The retirement equation 22. Lack of emergency savings can impact 41. Social Security timing trade-offs
4. Life expectancy probabilities retirement readiness 42. Maximizing Social Security benefits:
5. Life expectancy probabilities for same- 23. Liquidity needs peak at mid-life maximum earner
sex couples 24. The toxic effect of loans and 43. Social Security benefit claiming
6. Managing expectations of ability to work withdrawals considerations
7. Older Americans in the workforce 25. Spending and inflation 44. Claiming Social Security: decision tree
8. Partially-retired household profile 26. Changes in spending: partially- and 45. Debunking Social Security solvency
9. Fostering well-being in retirement fully-retired households myths
27. Changes in spending: all households 46. Three steps for Medicare coverage
Saving 28. Spending volatility in retirement 47. Rising health care costs in retirement
10. Income replacement needs vary by 29. More guaranteed income = less fear of 48. Maximizing an HSA for health care
household income spending ($1m-$3m total wealth) expenses
11. Retirement savings checkpoints: 30. More guaranteed income = less fear of 49. Long-term care planning
household income <$90k spending ($3m-$5m total wealth)
Reference
12. Retirement savings checkpoints: 31. The 4% rule: projected outcomes vs.
household income >$100k historical experience 50. 65 and working: should I sign up for
13. Annual savings needed if starting today: 32. Effects of withdrawal rates and portfolio Medicare?
household income <$90k allocations 51. Variation in Medicare Advantage costs
14. Annual savings needed if starting today: 33. Sequence of return risk: retirement 52. 2025 income-related monthly
household income >$100k spending adjustment amounts
15. Benefit of saving and investing early 34. Dollar cost ravaging: timing risk of 53. Long-term care planning options
16. The benefits of auto-escalation withdrawals 54. Retirement plan contribution and
17. Tax implications for retirement savings Investing deferral limits: 2024/2025
by account type 55. Disclosures
18. Diversified sources of retirement 35. Taking risk gets harder with age
funding 36. Consider how to fund your retirement
19. Evaluate a Roth at different life stages goals
20. Prioritizing long-term retirement 37. Structuring a portfolio to match investor
savings goals in retirement
21. Annual emergency reserves 38. Structuring a portfolio in retirement: the
bucket strategy
39. Goals-based wealth management
40. Impact of being out of the market
 The retirement equation GTR 3
Retirement Landscape

TOTAL A sound retirement plan

CONTROL Asset Make the most of the things
allocation that you can control but be
and sure to evaluate factors that
location are somewhat or completely
out of your control within
your comprehensive
Saving
Market retirement plan.
vs.
spending returns

OUT OF
RETIREMENT YOUR
CONTROL

Employment Tax and

earnings benefits
and duration policy

Longevity
SOME
CONTROL

Source: J.P. Morgan Asset Management.

 Life expectancy probabilities GTR 4

If you’re age 65 today, the probability of living to a specific age or beyond

Retirement Landscape

Plan for longevity

100%
Non-smokers in excellent health Average life expectancy is a
90% mid-point not an end-point.
90% Total population average You may need to plan on the
probability of living much
80% longer – perhaps 35 years in
73% 73% retirement – particularly if
you are a non-smoker in
70% excellent health.
64%

60% Investing a portion of your

53% portfolio for growth is
important to maintain your
50% 46% purchasing power over time.
43% 43%

40%
71%
29%
30%
52% 23%
20% 44%
20% 39% 15%
31%
10%
10% 19% 6% 17%
20% 6%
12%
6% 6% 1%
4%
0%
Age: 85 90 95 100 85 90 95 100 85 90 95 100 85 90 95 100
Women
Women Men
Men At At least
least oneone
of of
a a Both
Both members
members ofof
aa
couple
couple couple
couple

Source (chart): Social Security Administration, Period Life Table, 2021 (published in the 2024 OASDI Trustees Report); American Academy of
Actuaries and Society of Actuaries, Actuaries Longevity Illustrator, http://www.longevityillustrator.org/ (accessed December 2024),
J.P. Morgan Asset Management.
 Life expectancy probabilities for same-sex couples GTR 5

If you’re age 65 today, the probability of living to a specific age or beyond

Retirement Landscape

Plan for longevity

100% Non-smokers in excellent health
93% Average life expectancy is a
Total population average mid-point not an end-point.
90% 87% You may need to plan on the
probability of living much
80% 78% longer – perhaps 35 years in
retirement – particularly if
you are a non-smoker in
70% 67% excellent health.

60% Investing a portion of your

53% portfolio for growth is
50% important to maintain your
50% purchasing power over time.
40%
40% 77% 36%

30% 28% 63%

52%
20%
20% 18%
35%
27% 11%
10% 23% 8%
15% 4%
9% 1% 11%
5% 4% 0%
0%
Age: 85 90 95 100 85 90 95 100 85 90 95 100 85 90 95 100
AtAt least
least 1 Fof a
one Both
BothFof a 1 M one of a
At least Both
BothMof a
female couple female couple male couple male couple

Note: Sex assigned at birth; categories available in standard Social Security life expectancy tables.
Source (chart): Social Security Administration, Period Life Table, 2021 (published in the 2024 OASDI Trustees Report); American Academy of
Actuaries and Society of Actuaries, Actuaries Longevity Illustrator, http://www.longevityillustrator.org/ (accessed December 2024),
J.P. Morgan Asset Management.
 Managing expectations of ability to work GTR 6

Expectations of workers vs. retirees Reasons for retiring earlier than planned
Retirement Landscape

To retire at age 65 or older Early retirement

80% Changes at company/ You may not have complete
32% control over when you retire,
downsizing
70% so you should consider
70% having a back-up plan
Health problem or including:
31%
disability
60%
• Disability insurance
Care for spouse or
50% 13% • Saving for financial
family member
freedom and the ability to
weather changing
40% Another work-related circumstances
10%
reason
30% 28%

Outdated skills 8%
20%

10% Could afford to 39%

0% Wanted to do
Current workers' Experience of something else 19%
expectations actual retirees
Early retirement
Median retirement age: package or incentive 13%

Expected: 65
Actual: 62 0% 25% 50%

Source: Employee Benefit Research Institute, Greenwald Research: 2024 Retirement Confidence Survey. Individuals may have given more
than one answer. Latest available data as of December 31, 2024.
 Older Americans in the workforce GTR 7

Percentage of people in the civilian labor force 2003-2033

Retirement Landscape

It’s still off to work I go

40%
30% More people are working
27% 27%
30% 21% later in life, motivated by
needs and wants.
20% 65-74
8% 8% 10%
6% 75+
10%

0%
2003 2013 2023 2033

Total civilian
population 65+ 34m 43m 58m 72m

Major reasons people work in retirement

Buy extras 27%

Avoid reducing savings/"nest egg" 24%
Make ends meet 17%
Needs

Decreased savings/investments 11%

Keep insurance or benefits 9%
Financially support others 5%
Stay active and involved 52%
Enjoy working 38%
Wants

Job opportunity 22%

Want to do something else 6%

0% 20% 40% 60%

Source (top chart): Bureau of Labor Statistics, Employment Projections, Table 3.2 and Table 3.3. Actual data to 2023 and projection to 2033.
Civilian population age 65+ is non-institutionalized population.
Source (bottom chart): Employee Benefit Research Institute, Mathew Greenwald & Associates, Inc., 2021 Retirement Confidence Survey.
Latest available data as of December 31, 2024. Individuals may have given more than one answer.
 Partially-retired household profile GTR 8
Retirement Landscape

Of households partially retire including Prepare so you can retire

53% spouses that retire at different times on your own terms
Partial retirement should
mean you want to stay active
and involved and enjoy your
Partially retired households:
work.
1 Spend more before and after retirement relative to But lack of preparedness
their income vs. households that fully retire may mean at least one
member of your household
• Many experience a spending surge has to work longer to pay for
at retirement higher spending and credit
card debt.

2 Have more credit card debt

• 54% have revolving debt at retirement vs.
47% of fully-retired households (pre-retirement
income $50k-$90k)

3 Retire later
• Majority retire after age 65 vs. before age 65
for fully-retired households

Note: For households that retired age 60-69. The spending surge was only apparent for households with pre-retirement income <$150,000.
Source: J.P. Morgan Asset Management, Three New Spending Surprises, 2024; credit card debt percentage: internal select data from
JPMorgan Chase Bank, N.A. and its affiliates (collectively “Chase”) including select Chase check, credit and debit card and electronic
payment transactions from 2013 to 2022. Inflation adjusted to April 2023 dollars. Information that would have allowed identification of
specific customers was removed prior to the analysis.
 Fostering well-being in retirement GTR 9

The transition from…

Retirement Landscape

Know what you are

retiring to, not just what
you are retiring from
To make the most of your
retirement years, using time
to “PUSH” may improve your
outlook and life satisfaction.

Structured time Free time

Using time to “PUSH” is associated with well-being in retirement:

Purpose Use Socialize Health

Create a reason time to work, help with friends & Foster healthy
to get up in the others, go to events family; spend time behaviors
morning and activities with others

Source: PNAS.org, Vol 116, No. 4, Leading a Meaningful Life at Older Ages, January 22, 2019, Volume 8, Article 517226; Journal of Gerontology,
2019, 65:634–639, Investing in Happiness: The Gerontological Perspective, by Andrew Steptoe; PRB.org. online resource library, Happily Ever
After? Research Offers Clues on What Shapes Happiness and Life Satisfaction after Age 65, website as of October 18, 2023.
 Income replacement needs vary by household income GTR 10

Replacement rate detail by household income

104%
95%
89% 86%
120% 83% 81% 78% 76% 71% Income replacement rate
67% 63% 60% 56% 55%
Saving

100%
5% Changes in
11% 14% 17% 19% expenditures, taxes
22% 24%
29% and pre-retirement
33% 37%
80% 40% 44% savings
45%
64%
53% Social Security benefit
47% 42% 40% 37%
60% 35% 33%
29% Amount required from
26%
24% 21% private and employer
18% 14%
sources
40%

20% 42% 42% 43% 43% 44% 44% 43% 42% 41% 40% 41%
39% 39% 39%

0%
$30k $40k $50k $60k $70k $80k $90k $100k $125k $150k $175k $200k $250k $300k
Pre-retirement income

Source: Longitudinal Chase data (2016-2023), inflation adjusted. Chase data includes internal select data from JPMorgan Chase Bank, N.A.
and its affiliates (collectively “Chase”) including select Chase check, cash, credit and debit card, and electronic payment transactions from
January 1, 2016 to December 31, 2023. Additional information on J.P. Morgan Asset Management’s data privacy standards available at
https://am.jpmorgan.com/us/en/asset-management/mod/insights/retirement-insights/gtr-privdisc/. Social Security benefits uses
observed Chase household inflows. Percentages and values may not sum due to rounding. J.P. Morgan Asset Management, 2025.
 Retirement savings checkpoints Household income ≤$90k
Annual savings rate: 5% GTR 11

Current household income

Model assumptions
Current
$30k $40k $50k $60k $70k $80k $90k
age Annual gross savings rate:
25 5k 20k 25k 35k 40k 50k 60k
5%

30 15 35 45 60 75 90 100 Pre-retirement portfolio:

60/40 diversified portfolio
Saving

35 30 55 75 95 115 135 155

40 50 80 105 135 165 195 220
Post-retirement portfolio:
40/60 diversified portfolio
45 70 115 145 190 225 265 300
Inflation rate: 2.4%
50 90 145 185 235 280 330 375

55 115 185 240 305 360 420 480

Retirement age: 65

60 145 230 295 375 445 520 590 Years in retirement: 35

65 175 275 350 445 525 615 700

This analysis assumes you would like to maintain an equivalent lifestyle in retirement.
Household income is assumed to be gross income (before taxes and savings).
How to use:
• Go to the intersection of your age and your closest current household income.
• This is the amount you should have saved today.
• Example: For a 40-year-old with a household income of $50,000, your current savings should be $105,000.
To personalize your plan, use an online calculator or discuss your circumstances with a financial professional.

Source: This chart is for illustrative purposes only and must not be relied upon to make investment decisions. J.P. Morgan Asset
Management’s (JPMAM) model is based on proprietary Long-Term Capital Market Assumptions returns and an 80% confidence level.
Portfolios are described as equity/bond percentages (e.g., a 40/60 portfolio is 40% equities and 60% bonds). Assumptions include
household income replacement rates shown on page 10. Consult with a financial professional for a more personalized assessment.
Allocations, assumptions and expected returns are not meant to represent JPMAM performance. Given the complex risk/reward trade-offs
involved, we advise clients to rely on judgment as well as quantitative optimization approaches in setting strategic allocations. References
to future returns for either asset allocation strategies or asset classes are not promises or even estimates of actual returns a client portfolio
may achieve. J.P. Morgan Asset Management.
 Retirement savings checkpoints Household income ≥$100k
Annual savings rate: 10%
GTR 12

Current household income

Model assumptions
Current
$100k $125k $150k $175k $200k $250k $300k
age Annual gross savings rate:
10%
25 See note1

30 40k 45k 45k 45k 45k 60k 120k Pre-retirement portfolio:

60/40 diversified portfolio
Saving

35 110 130 145 160 175 225 330

Post-retirement portfolio:
40 200 240 275 305 340 435 600
40/60 diversified portfolio
45 305 375 435 485 540 685 920
Inflation rate: 2.4%
50 415 505 590 665 745 940 1,240
Retirement age: 65
55 565 690 805 910 1,025 1,295 1,690

60 725 890 1,045 1,185 1,330 1,680 2,180 Years in retirement: 35

65 890 1,090 1,280 1,455 1,640 2,070 2,670

1 These households need to save at least 9% of their gross household income going forward.

This analysis assumes you would like to maintain an equivalent lifestyle in retirement.
Household income is assumed to be gross income (before taxes and savings).
How to use:
• Go to the intersection of your age and your closest current household income.
• This is the amount you should have saved today.
• Example: For a 40-year-old with a household income of $100,000, your current savings should be $200,000.
To personalize your plan, use an online calculator or discuss your circumstances with a financial professional.

Source: This chart is for illustrative purposes only and must not be relied upon to make investment decisions. J.P. Morgan Asset
Management’s (JPMAM) model is based on proprietary Long-Term Capital Market Assumptions returns and an 80% confidence level.
Portfolios are described as equity/bond percentages (e.g., a 40/60 portfolio is 40% equities and 60% bonds). Assumptions include
household income replacement rates shown on page 10. Consult with a financial professional for a more personalized assessment.
Allocations, assumptions and expected returns are not meant to represent JPMAM performance. Given the complex risk/reward trade-offs
involved, we advise clients to rely on judgment as well as quantitative optimization approaches in setting strategic allocations. References
to future returns for either asset allocation strategies or asset classes are not promises or even estimates of actual returns a client portfolio
may achieve. J.P. Morgan Asset Management.
 Annual savings needed if starting today Household income ≤$90k GTR 13

Current household income

Model assumptions
$30k $40k $50k $60k $70k $80k $90k
Pre-retirement portfolio:
Current 60/40 diversified portfolio
Savings rate (x current household income)
age
Post-retirement portfolio:
25 6% 7% 7% 8% 8% 8% 8%
40/60 diversified portfolio
Saving

30 8% 9% 10% 10% 10% 11% 11%

Inflation rate: 2.4%
35 11% 12% 13% 14% 14% 14% 14%
Retirement age: 65
40 15% 17% 18% 19% 19% 19% 19%
Years in retirement: 35
45 20% 24% 24% 26% 26% 27% 27%
50 29% 34% 35% 37% 37% 38% 39%

Values assume you would like to maintain an equivalent lifestyle in retirement.

Household income is assumed to be gross income (before taxes and savings).

How to use:

• Go to the intersection of your current age and your closest current household income.

• This is the percentage of your current household income to contribute annually going forward if
you have $0 saved for retirement today.

• Example: A 40-year-old with household income of $50,000 and $0 saved for retirement today may
need to save 18% every year until retirement.

Source: This chart is for illustrative purposes only and must not be relied upon to make investment decisions. J.P. Morgan Asset
Management’s (JPMAM) model is based on proprietary Long-Term Capital Market Assumptions returns and an 80% confidence level.
Portfolios are described as equity/bond percentages (e.g., a 40/60 portfolio is 40% equities and 60% bonds). Assumptions include
household income replacement rates shown on page 10. Consult with a financial professional for a more personalized assessment.
Allocations, assumptions and expected returns are not meant to represent JPMAM performance. Given the complex risk/reward trade-offs
involved, we advise clients to rely on judgment as well as quantitative optimization approaches in setting strategic allocations. References
to future returns for either asset allocation strategies or asset classes are not promises or even estimates of actual returns a client portfolio
may achieve. J.P. Morgan Asset Management.
 Annual savings needed if starting today Household income ≥$100k GTR 14

Current household income

Model assumptions
$100k $125k $150k $175k $200k $250k $300k
Pre-retirement portfolio:
Current 60/40 diversified portfolio
Savings rate (x current household income)
age
Post-retirement portfolio:
25 9% 9% 9% 9% 9% 9% 9%
40/60 diversified portfolio
Saving

30 12% 12% 12% 11% 11% 11% 12%

Inflation rate: 2.4%
35 16% 16% 15% 15% 15% 15% 16%
Retirement age: 65
40 22% 22% 21% 21% 21% 21% 22%
Years in retirement: 35
45 31% 30% 29% 29% 29% 29% 31%
50 44% 43% 42% 41% 41% 41% 44%

Values assume you would like to maintain an equivalent lifestyle in retirement.

Household income is assumed to be gross income (before taxes and savings).

How to use:

• Go to the intersection of your current age and your closest current household income.

• This is the percentage of your current household income to contribute annually going forward if
you have $0 saved for retirement today.

• Example: A 40-year-old with household income of $100,000 and $0 saved for retirement today
may need to save 22% every year until retirement.

Source: This chart is for illustrative purposes only and must not be relied upon to make investment decisions. J.P. Morgan Asset
Management’s (JPMAM) model is based on proprietary Long-Term Capital Market Assumptions returns and an 80% confidence level.
Portfolios are described as equity/bond percentages (e.g., a 40/60 portfolio is 40% equities and 60% bonds). Assumptions include
household income replacement rates shown on page 10. Consult with a financial professional for a more personalized assessment.
Allocations, assumptions and expected returns are not meant to represent JPMAM performance. Given the complex risk/reward trade-offs
involved, we advise clients to rely on judgment as well as quantitative optimization approaches in setting strategic allocations. References
to future returns for either asset allocation strategies or asset classes are not promises or even estimates of actual returns a client portfolio
may achieve. J.P. Morgan Asset Management.
 Benefit of saving and investing early GTR 15

Account growth of $200 invested/saved monthly

Starting early and
Ending portfolio investing are the keys to
$600,000 Consistent saver & investor: compound returns
$96,000 saved from age 25 to 65
$550,000 earning 7.25% per year $548,200 The early and consistent
Invested: $96,000
investor has the best results.
$500,000 Late saver & investor:
Saving

$72,000 saved from age 35 to 65 The early investor who stops

$450,000 earning 7.25% per year after 10 years does slightly
Early saver & investor: better than the late investor
$400,000 $24,000 saved from age 25 to 35 who invests significantly
earning 7.25% per year more over a longer time.
$350,000
Consistent saver: And the consistent saver who
$300,000 $96,000 saved from age 25 to 65 $293,800 does not invest loses out on
in cash earning 3.1% per year Invested: $24,000 higher returns.
$250,000 $254,400
Invested: $72,000
$200,000 $190,900
Saved: $96,000
$150,000

$100,000

$50,000

$0
25 30 35 40 45 50 55 60 65
Age

Source: J.P. Morgan Asset Management, Long-Term Capital Market Assumptions. Compounding is the increasing value of assets due to
investment return earned on both principal and prior investment gains. The above example is for illustrative purposes only and not
indicative of any investment.
 The benefits of auto-escalation GTR 16

Account growth from contributions, employer match and investment returns

Model assumptions
$2,500,000 Ending portfolio Start age: 25

Consistent 10% contribution 9% Retirement age: 65

18%
Starting salary: $50,000
$2.3M
Saving

$2,000,000
Escalates by 1% annually from 3% 73% Wage growth: 2.4%
until capping at 10%
Assumed annual employer
match: 100% of employee
$1,500,000 10% contribution up to 5%
Consistent 3% contribution
19%
$2.1M Investment return: 7.25%
71%

$1,000,000

13%

13%
$930K
$500,000 74%

Return
$0
25 30 35 40 45 50 55 60 65 Contribution

Age Employer match

Individual is assumed to retire at the end of age 65. Growth of portfolio is tax deferred; ending portfolio may be subject to tax.
Source: J.P. Morgan Asset Management, Long-Term Capital Market Assumptions. The above example is for illustrative purposes only and
not indicative of any investment.
 Tax implications for retirement savings by account type GTR 17

Contributions1 Investment growth Withdrawals

Pre-tax 401(k)/
Traditional IRA
(Taxed as ordinary income)
Saving

Retirement accounts:
Roth 401(k)/ Taxes generally apply
Roth IRA to contributions or
(For qualified withdrawals) withdrawals. Most
withdrawals must
be qualified to avoid
After-tax 401(k)/
tax penalties.2
non-deductible
Traditional IRA (Investment returns taxed
as ordinary income)

Health Savings If not used for qualified

Account (HSA)3 health care expenses,
(For qualified health withdrawals after age 65
care expenses) will be taxed as ordinary
income (without penalty).

Preferential tax treatment Subject to taxes

Federal taxes; states may differ. This is not intended to be individual tax advice. Consult your tax professional.
1Income and other restrictions may apply to contributions. Tax penalties usually apply for early withdrawals. Qualified withdrawals are

generally those taken over age 59½; qualification requirements for amounts converted to a Roth from a traditional account may differ; for
some account types, such as Roth accounts, contributions that are withdrawn may be qualified. See IRS Publications 590 and 560 for more
information. 2Withdrawals from after-tax 401(k) and non-deductible IRAs must be taken on a pro-rata basis including contributions and
earnings growth. For non-deductible IRAs, all Traditional IRAs must be aggregated when calculating the amount of pro-rata contributions
and earnings growth. 3There are eligibility requirements. Qualified medical expenses include items such as prescriptions, teeth cleaning
and eyeglasses and contacts for a medical reason. A 20% tax penalty applies on non-qualified distributions prior to age 65. After age 65,
taxes must be paid on non-qualified distributions. See IRS Publication 502 for details.
Source: J.P. Morgan Asset Management.
 Diversified sources of retirement funding GTR 18

Included when calculating whether:

Account type Investment earnings/ Income taxes Social Security % taxed? Retirement funding
withdrawals owed? Medicare surcharges? sources are not created
Tax-free withdrawals equal
Health Savings (for qualified health care
Account expenses)1 Be aware of:
• Income taxes
Saving

• How much Social Security

Tax-free withdrawals2 benefit is subject to tax
Roth 401(k)/IRA
• Additional required
Medicare premiums
Tax-exempt interest  Qualified withdrawals from
Roth or Health Savings
Ordinary dividends
Taxable interest   Accounts can provide tax-
free funding that will not
Taxable Account
result in reduction of
Qualified dividends   government benefits.

Realized capital gains  

Pre-tax 401(k)/
Taxable withdrawals
(ordinary income)3
 
Traditional IRA

This is not intended to be individual tax advice; consult your tax professional.
1Must have a qualifying high-deductible health plan to make contributions. Funds in the HSA may be withdrawn tax free for qualified medical

expenses unless a credit or deduction for medical expenses is claimed. After age 65 funds also may be withdrawn at ordinary income tax
rates without penalty for any reason.
2Subject to 5-year Roth account holding period and age requirements.
3Withdrawal of non-deductible contributions from a traditional IRA are not taxable.

Source: J.P. Morgan Asset Management.

 Evaluate a Roth at different life stages GTR 19

Contribute to a Roth account in lower-income years; Traditional in higher-income years

Tax diversification
Managing taxes over a
Next tax bracket lifetime requires balancing
your current and future tax
pictures. Make income-tax
Annual taxable income ($)

Pre-tax 401(k)/
diversification a priority to
Saving

Traditional IRA1 have more flexibility and

control in retirement.

RMDs General Rule: Contribute to a

Either/both Roth early in your career if
you expect upward wage
trajectory, and shift to a
Traditional account as your
income increases.
Roth 401(k) or IRA Consider the exceptions if
wealth is concentrated in
tax-deferred accounts.

20 25 30 35 40 45 50 55 60 65 7072-75275 80
Age

Working years Retirement

Exceptions if wealth is concentrated in tax-deferred accounts:

1 Roth 401(k) contributions 2 Proactive Roth conversions in lower
in peak earning years. income years.
1If eligible to make a deductible contribution (based on your MAGI = Modified Adjusted Gross Income).
2SECURE 2.0 increased the starting age for RMD (Required Minimum Distributions) from 72 to 75 depending upon year of birth. The
illustration reflects savings options into Traditional and Roth IRA accounts, as well as into pre-tax and Roth 401(k) accounts. RMDs are
typically due no later than April 1 following the year the owner turns their distribution age (72-75) and are calculated every year based on the
year-end retirement account value and the owner/plan participant’s life expectancy using the IRS Uniform or Joint Life Expectancy Table. If
the employer contributions are pre-tax, they are subject to tax upon distribution.
The above example is for illustrative purposes only. This is not intended to be individual tax advice; consult your tax professional.
Source: J.P. Morgan Asset Management.
 Prioritizing long-term retirement savings GTR 20

Getting started
8 Taxable account
Start with emergency
savings to weather spending
and income shocks
7 IRA3
throughout the year and
make sure to take advantage
Saving

Pay down lower interest loans of employer matching funds

6 (such as student loans with interest < 7.25%)1 if they are available.
Prioritizing savings

An HSA offers triple tax

benefits if used for qualified
5 Additional Defined Contribution savings
medical expenses in
Maximize
retirement.
contribution
4 HSA (Health Savings Account)2

Pay down higher interest loans

3 (such as credit card debt/student loans with interest > 7.25%)1

Maximize
Defined Contribution savings to maximize employer match
employer 2
(if available)
match

Start here 1 Emergency reserve (see “Annual emergency reserves” on page 21)

1This assumes that a diversified portfolio may earn 7.25% over the long term. Actual returns may be higher or lower. Generally, consider

making additional payments on loans with a higher interest rate than your long-term expected investment return.
2Must have a high-deductible health insurance plan that is eligible to be paired with an HSA. Those taking Social Security benefits age 65 or

older and those who are on Medicare are ineligible. Tax penalties apply for non-qualified distributions prior to age 65; consult IRS
Publication 502 or your tax professional.
3Income limits may apply for IRAs. If ineligible for these, consider a non-deductible IRA or an after-tax 401(k) contribution. Individual

situations will vary; consult your tax professional.

Source: J.P. Morgan Asset Management. Not intended to be a personal financial plan.
 Annual emergency reserves GTR 21

Net income in weeks needed to weather spending and income shocks

Prepare for
Workers (age 25-64) Retirees (age 65+) uncertainties in life

75th percentile 75th percentile Life is uncertain – spending

Range Range shocks and/or job losses
50th percentile 50th percentile can happen at any time.
25 25 Emergency savings can help
Saving

22
pay for these uncertainties

Net income in number of weeks

Net income in number of weeks

19 19 20 and keep retirement savings

20 20 intact.

Workers typically encounter

14 spending shocks more
15 15
12 frequently (about once every
10 10 three months) than income
10 10 shocks (about once a year).

• Consider setting aside 2-3

8 8 8 8
months of pay
5 5
5 5 Retirees encounter more
4 4
spending shocks in larger
0 0 amounts than workers, likely
<$50k $50-90k $90-150k $150k-1m <$50k $50-90k $90-150k $150k-1m due to unpredictable costs
such as health care.
Gross income Gross income
• Consider setting aside 3-6
months of income

Source: J.P. Morgan Asset Management, 2023; longitudinal Chase data (2022-2023) of those households with monthly income, which may include wage income,
unemployment, etc. Chase data includes internal select data from JPMorgan Chase Bank, N.A. and its affiliates (collectively “Chase”) including select Chase
check, cash, credit and debit card and electronic payment transactions from January 1, 2022 to December 31, 2023. Additional information on J.P. Morgan Asset
Management’s data privacy standards available at https://am.jpmorgan.com/us/en/asset-management/mod/insights/retirement-insights/gtr-privdisc/.
Spending shocks are calculated monthly and include those months when monthly spending is 25% above the previous 12 months’ median spending and the
25% excess spending amount could not be funded by that month’s income. Income shocks are calculated monthly and include those months when monthly
income is 25% less than the previous 12 months’ median income and that month’s spending amount could not be funded by the reduced income.
 Lack of emergency savings can impact retirement readiness GTR 22

Households with spending spikes

Monthly spending 25% above the previous 12 months’ median spending Build emergency
savings
Emergency savings is a
9 in 10 1 in 3 necessity for everyone.
Households without an
have spending spikes > income households cannot fund spikes adequate cash buffer are
with income and cash reserves more likely to take on debt
and find themselves at risk
of not achieving a successful
Spending

retirement outcome.

Employers can help:

• 4 in 10 401(k) plan
participants lack
emergency savings.

• 7 in 10 said access to an
What actions were taken by households to raise cash? emergency savings
account through their
employer is appealing.

48% 17% 13%

increased took a decreased
credit card debt plan loan contributions

Source: How Financial Factors Outside of a 401(k) Plan Can Impact Retirement Readiness
https://www.ebri.org/content/summary/how-financial-factors-outside-of-a-401(k)-plan-can-impact-retirement-readiness; statistics on
401(k) participants: Defined Contribution Plan Participant Survey Findings, 2024 https://am.jpmorgan.com/us/en/asset-
management/adv/insights/retirement-insights/plan-participant-survey/
 Liquidity needs peak at mid-life GTR 23

Percentage of people with 401(k) loans or credit card debt peaks at mid-life
Be prepared
Personal and family related
% participants with 401(k) loans % households with revolving debt expenses may peak at mid-
life.
18% 48%
Saving early and emergency
savings can help manage

% households with revolving credit card debt

16% 46% unexpected expenses.
% participants with 401(k) loans
Spending

14% 44%

12% 42%

10% 40%

8% 38%

6% 36%
35 40 45 50 55 60 65
Age

Source: J.P. Morgan retirement research, percentage of people with 401(k) loan is based on 2021 Retirement by the Numbers study (2018-
2019 trends); J.P. Morgan Asset Management, percentage of people with credit card revolving debt is based on 2016-2024 internal select
credit card data from JPMorgan Chase Bank, N.A. and its affiliates (collectively “Chase”). Information that would have allowed identification
of specific customers was removed prior to the analysis.
 The toxic effect of loans and withdrawals GTR 24

Growth of 401(k) investment

Mitigate the effects of
$1,600,000 loans
Constant contributions portfolio
$1,351,900
Portfolio with loans and withdrawals If taking a loan from your
$1,200,000 $368,300 less
401(k) is unavoidable, try to
$983,600 mitigate the impact by
$800,000 continuing contributions
while repaying the loan. It is
$400,000 especially important to
ensure you continue to
Spending

receive an employer match,

$0
if available.
25 30 35 40 45 50 55 60 65
Age

Assumed cash flows: 401(k) contributions, loans and withdrawals

Contributions: 5% Match: 5% Constant contributions: 10% Loan Withdrawal

20%

10%
As a % of salary

0%

-10%
Loan Loan
repayment repayment
-20%

-30%
25 30 35 40 45 50 55 60 65
Age
Source: J.P. Morgan Asset Management. For illustrative purposes only. Hypothetical portfolio is assumed to be invested 60% in the S&P 500
and 40% in the Bloomberg Capital U.S. Aggregate Index from 1984-2024. Starting salary of $30,000 increases by 2.4% each year. Loan and
withdrawal amounts are assumed to be $10,000. Loan interest rate is assumed to be 7.5% and is paid off over 4 years.
 Spending and inflation GTR 25

Average annual spending by age and category 2017-2023

Take a long-term view
45.0% 41.6% Households may benefit
40.3%
35-44 75+ from a long-term view of
inflation and how spending
30.0% may change over time.
19.0%
16.0% 15.3% As a percentage of their
13.4% 12.4%
15.0% spending, older households
6.9% 7.0% purchase more health care
2.7% and gifts, but less on food
Spending

0.0% and transportation.

Housing Health care Food & beverage Transportation Gifts & charity
The spending categories
shown are 89% of spending
for households age 75+.
Annual average inflation by spending category
6.0%
1982-2024 2024
5.0% 4.5%
4.1%
4.0%
3.0% 2.8% 2.9% 2.9% 2.9%
3.0% 2.4% 2.5%

2.0% 1.7%

1.0%

0.0%
Housing Health care Food & beverage Transportation Overall inflation

Source (top chart): Bureau of Labor Statistics (BLS), 2017-2023 annual average Consumer Expenditure Survey, adjusted to December 2024
dollars. Housing inflation includes imputed rent (the amount a household would pay to rent the house they own). Housing spending
includes mortgage payments, rent, property taxes, maintenance, utilities and furnishings. Those who own their home outright or have low
fixed mortgages may have a hedge against inflation. Additional spending categories for age 35-44 and 75+, respectively: entertainment 6%
and 4%; other 4% and 4%; apparel 3% and 2%; education 2% and 1%.
Source (bottom chart): BLS, Consumer Price Index (all urban consumers, seasonally adjusted), J.P. Morgan Asset Management.
 Changes in spending Partially- and fully-retired households
$250k-$750k investable wealth
GTR 26

Annual average household spending by age

What to expect
Average spending declines
$90,000 from the early part of
Travel retirement, then tends to
flatten out. Those at older
$75,630
Apparel & services ages tend to spend less on
$75,000
$69,040 all categories except health
$65,500 Entertainment care and charitable
$60,110 contributions.
$60,000
Spending

$55,290 Other
$52,760 $51,980 Those who live to the oldest
$51,920
ages may have costs related
Transportation
to long-term care.
$45,000
Food & beverage

$30,000
Education

Housing (includes
mortgage)
$15,000
Charity & gifts

Health care
$0
60-64 65-69 70-74 75-79 80-84 85-89 90-94 95+
Age

Source: J.P. Morgan Asset Management, based on internal select data from JPMorgan Chase Bank, N.A. and its affiliates (collectively
“Chase”) including select Chase check, credit and debit card and electronic payment transactions from January 1, 2017 to November 30,
2024. Check and cash distribution: 2021 CE Survey; J.P. Morgan Asset Management. Information that would have allowed identification of
specific customers was removed prior to the analysis. Other includes: tax payments, insurance, gambling, personal care and uncategorized
items. Asset estimates for de-identified and aggregated households supplied by IXI, an Equifax Company for data from 2017-2023 and
Windfall for data from 2024. Estimates include all investable assets except employer-sponsored plans, home equity and other non-portable
assets. Additional information on J.P Morgan Asset Management’s data privacy standards available at
https://am.jpmorgan.com/us/en/asset-management/mod/insights/retirement-insights/gtr-privdisc/. Retired households receive
retirement income only, including Social Security, pension and/or annuity payments.
 Changes in spending All households
$1m-$3m investable wealth
GTR 27

Annual average household spending by age

What to expect
Average spending is highest
$132,090 at mid-life. Those at older
$135,140 ages tend to spend less on
$135,000 Travel
$125,380 all categories except health
care and charitable
$120,000 Apparel & services contributions.
$104,470
$105,000
$93,090 Entertainment Those who live to the oldest
$90,590 ages may have costs related
Spending

$89,710
$90,000 Other to long-term care.

$75,000 Transportation

$60,000 Food & beverage

$45,000 Education

$30,000 Housing (includes

mortgage)

$15,000 Charity & gifts

Health care
$0
45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85-89 90-94 95+
Age

Source: J.P. Morgan Asset Management, based on internal select data from JPMorgan Chase Bank, N.A. and its affiliates (collectively
“Chase”) including select Chase check, credit and debit card and electronic payment transactions from January 1, 2017 to November 30,
2024. Check and cash distribution: 2021 CE Survey; J.P. Morgan Asset Management. Information that would have allowed identification of
specific customers was removed prior to the analysis. Other includes: tax payments, insurance, gambling, personal care and uncategorized
items. Asset estimates for de-identified and aggregated households supplied by IXI, an Equifax Company for data from 2017-2023 and
Windfall for data from 2024. Estimates include all investable assets except employer-sponsored plans, home equity and other non-portable
assets. Additional information on J.P. Morgan Asset Management’s data privacy standards available at
https://am.jpmorgan.com/us/en/asset-management/mod/insights/retirement-insights/gtr-privdisc/
 Spending volatility in retirement GTR 28

Spending fluctuates more than 20% per year for a significant number of retirees
Prepare for spending
fluctuations
Even though spending tends
to decrease starting at mid-
life, there is significant
variation from year to year for
many retirees.

Recent retirees will need to

60% 52% prepare for sequence of

Spending

return risk near retirement

and have flexibility for
variable spending as they
age.

Compared to the year before …and this continues

retirement, 6 in 10 new throughout retirement with
retirees experience spending half of those age 75-80
volatility in the first three experiencing spending
years of retirement… volatility from year to year

For retirement income starting age 60-69. 2013-2019 (pre-pandemic) results are similar with 55% on the left chart and 51% on the right chart.
Source: J.P. Morgan Asset Management, based on internal select data from JPMorgan Chase Bank, N.A. and its affiliates (collectively
“Chase”) including select Chase check, credit and debit card and electronic payment transactions from 2013 to 2022. Inflation-adjusted to
April 2023. Information that would have allowed identification of specific customers was removed prior to the analysis. Additional information
on J.P. Morgan Asset Management’s data privacy standards available at https://am.jpmorgan.com/us/en/asset-
management/mod/insights/retirement-insights/gtr-privdisc/
 More guaranteed income = less fear of spending Total retirement
wealth $1m-$3m GTR 29

Guaranteed income can

Retirement
Accounts + Guaranteed
Income = Total Retirement
Wealth1
give you confidence to
spend
After building up their
Median spending account values over their
Total retirement wealth $1m-$3m lifetimes many individuals
$80,000 are reluctant to see their
$71,110 balances go down.
Median observed annual spending
Spending

$63,480 This can result in people with

+4 2% similar total wealth spending
$60,000
differently depending on
$50,240 +26% how much guaranteed
income they have.
$40,000

$20,000

$0
20-40% 40-60% 60-80%

Retirement income as a % of total retirement wealth

Less guaranteed income More guaranteed income

1Total retirement is wealth in retirement accounts and the present value of future guaranteed income payments.

Source: Chase data including select Chase credit and debit card, electronic payment, ATM withdrawal and check transactions in 2023.
Information that would have allowed identification of specific customers was removed prior to the analysis. Asset estimates for de-identified
and aggregated households supplied by IXI/Equifax, Inc. Total retirement wealth is the sum of investable wealth and the present value of
observed retirement income sources including Social Security (inflated), pensions and annuities (both not inflated) until age 90. Inflation rate
assumption is 2.5%. Observed retirement income sources are adjusted to pre-tax values to be consistent with investable wealth.
 More guaranteed income = less fear of spending Total retirement
wealth $3m-$5m GTR 30

Guaranteed income can

Retirement
Accounts + Guaranteed
Income = Total Retirement
Wealth1
give you confidence to
spend
After building up their
account values over their
Median spending
lifetimes many individuals
Total retirement wealth $3m-$5m
are reluctant to see their
$140,000 $133,380 balances go down.
Median observed annual spending

+4 0 % $121,140
Spending

This can result in people with

$120,000
similar total wealth spending
+27% differently depending on
$100,000 $95,470
how much guaranteed
income they have.
$80,000

$60,000

$40,000

$20,000

$0
20-40% 40-60% 60-80%

Retirement income as a % of total retirement wealth

Less guaranteed income More guaranteed income

1Total retirement is wealth in retirement accounts and the present value of future guaranteed income payments.

Source: Chase data including select Chase credit and debit card, electronic payment, ATM withdrawal and check transactions in 2023.
Information that would have allowed identification of specific customers was removed prior to the analysis. Asset estimates for de-identified
and aggregated households supplied by IXI/Equifax, Inc. Total retirement wealth is the sum of investable wealth and the present value of
observed retirement income sources including Social Security (inflated), pensions and annuities (both not inflated) until age 90. Inflation rate
assumption is 2.5%. Observed retirement income sources are adjusted to pre-tax values to be consistent with investable wealth.
 The 4% rule: projected outcomes vs. historical experience GTR 31

40/60 portfolio at various initial withdrawal rates Historical ending wealth at 4% initial
Projected nominal outcomes, 80th percentile withdrawal rate (1928-2024) Good in theory, poor in
68 rolling 30-year periods
practice
$1,000,000
The 4% rule is the maximum
>$0 85%
initial withdrawal percentage
that has a high likelihood of
$800,000 not running out of money
>$1M 66%
after 30 years. With current
life expectancies, a 35-year
Portfolio value

$600,000 >$2M 47% view is more appropriate.

Spending

The outcomes are sensitive

>$3M to forward-looking return
$400,000 35%
assumptions and the rule is
not guidance on how to
>$4M 31% efficiently use your wealth.
$200,000
You may want to consider a
dynamic approach that
>$5M 24%
adjusts over time to more
$0 effectively use your
0 5 10 15 20 25 30 35 0% 20% 40% 60% 80% 100% retirement savings.
Years in retirement
4% 5% 6%

Source: These charts are for illustrative purposes only and must not be used, or relied upon, to make investment decisions. Portfolios are
described as equity/bond percentages (e.g., a 40/60 portfolio is 40% equities and 60% bonds).
Right chart: The portfolio returns for the historical analysis are calculated based on 40% S&P 500 Total Return and 60% Bloomberg U.S.
Aggregate Total Return. Each portfolio's starting value is set at $1,000,000. Withdrawals are increased annually by CPI (CPI NSA Index).
Ending wealth at the end of each 30-year rolling period is in nominal terms.
Left chart: The hypothetical portfolio assumes All Country World Equity and U.S. Aggregate Bonds. J.P. Morgan Asset Management’s
(JPMAM) model is based on proprietary Long-Term Capital Market Assumptions (first 15 years) and equilibrium returns (20 years). The
resulting projections include only the benchmark return associated with the portfolio and do not include alpha from the underlying product
strategies within each asset class. The yearly withdrawal amount is set as a fixed percentage of the initial amount of $1,000,000 and is then
inflation adjusted over the period (2.4%). Allocations, assumptions and expected returns are not meant to represent JPMAM performance.
Given the complex risk/reward trade-offs involved, we advise clients to rely on judgment as well as quantitative optimization approaches in
setting strategic allocations. References to future returns for either asset allocation strategies or asset classes are not promises or even
estimates of actual returns a client portfolio may achieve.
 Effects of withdrawal rates and portfolio allocations GTR 32

Likelihood of success after 35 years in retirement

Various initial withdrawal rates and diversified asset allocations Find your balance
At both the highest and the
Equities lowest confidence levels, you
Cash 20/80 40/60 50/50 60/40 80/20 may want to consider
Bonds adjusting your spending
and/or asset allocation.
1% 95-100 95-100 95-100 95-100 95-100 95-100 An overly conservative
High withdrawal rate may require
2% 95-100 95-100 95-100 95-100 95-100 95-100
Confidence unnecessary lifestyle
Spending

3% 95-100 95-100 95-100 95-100 95-100 95-100 sacrifices. While a more

Initial withdrawal rate

equity-heavy portfolio may

4% 0-5 85-90 90-95 90-95 85-90 85-90 lead to higher likelihoods of
5% 0-5 45-50 60-65 65-70 65-70 70-75
success, the magnitude of
Medium
Confidence the failures may be greater
6% 0-5 10-15 30-35 35-40 40-45 50-55 due to increased volatility.
7% 0-5 0-5 10-15 15-20 20-25 30-35 A well-diversified portfolio
8% with a dynamic withdrawal
0-5 0-5 0-5 5-10 10-15 20-25
strategy is typically optimal.
9% Low
0-5 0-5 0-5 0-5 5-10 10-15
Confidence
10% 0-5 0-5 0-5 0-5 0-5 5-10

Source: This chart is for illustrative purposes only and must not be used, or relied upon, to make investment decisions. Portfolios are
described using equity/bonds. For asset allocation details, see “Model Portfolio Details” on the Disclosure page. J.P. Morgan Asset
Management’s (JPMAM) model is based on proprietary Long-Term Capital Market Assumptions (first 15 years) and equilibrium returns (20
years). The resulting projections include only the benchmark return associated with the portfolio and do not include alpha from the
underlying product strategies within each asset class. The yearly withdrawal amount (1% to 10%) is set as a fixed percentage of the initial
amount of $1,000,000 and is then inflation adjusted over the period (2.4%). The percentile outcomes represent the percentage of simulated
results with an account balance greater than $0 after 35 years (e.g., “95-100” means that 95-100% of simulations had account balances
greater than $0 after 35 years). Overlap percentiles are included in the lower bracket (e.g., 80 is included in “75-80”; 85 is included in “80-
85”). Allocations, assumptions and expected returns are not meant to represent JPMAM performance. Given the complex risk/reward trade-
offs involved, we advise clients to rely on judgment as well as quantitative optimization approaches in setting strategic allocations.
References to future returns for either asset allocation strategies or asset classes are not promises or even estimates of actual returns a
client portfolio may achieve.
 Sequence of return risk: retirement spending GTR 33

Spending: portfolio values assuming various return sequence scenarios

The greatest risk is when
wealth is greatest
Steadily average Great start/bad end Bad start/great end
$2,500,000 When saving for retirement,
$2,000,000 the return experienced in the
early years has little effect
$1,500,000
1,624,000 compared to growth
$1,000,000 achieved through regularly
$500,000 saving. However, the rates of
631,000 return just before and after
$0
Spending

retirement – when wealth is

0 5 10 15 20 25 30 greatest – can have a
Years of spending1 significant impact on
retirement outcomes.

Annual returns by scenario

20%
Great start/
bad end 0%

-20%

20%
Steadily Average
average 0%
return: 5%
-20%

20%

Bad start/
great end 0%

-20%

Source: J.P. Morgan Asset Management. Hypothetical return scenarios are for illustrative purposes only and are not meant to represent an
actual asset allocation. 1Years of spending assumes an initial $1,000,000 and a 4% withdrawal adjusted annually for 2.4% inflation.
 Dollar cost ravaging: timing risk of withdrawals GTR 34

Portfolio value over time 1966-2000

Assumes 4% initial withdrawal rate Assumed annual return: 8.1% Sequence of return risk
40/60 portfolio: Actual annual return: 9.5%
$2,000,000 Withdrawing assets in a
volatile market early in
$1,500,000 retirement can ravage a
portfolio. Consider
$1,000,000 investment solutions that
incorporate downside
protection such as:
$500,000
• Balanced risk and
Spending

$0 diversification at the
65 70 75 80 85 90 95 100 beginning of retirement
Age
• Annuities with guarantees
and/or protection
Rate of return: actual vs. average 1966-2000 features
Assumed annual return: 8.1%
40/60 portfolio: Actual annual return: 9.5% • Investments that use
30% options strategies for
defensive purposes
20%

10%

0%

-10%
1966 1971
1970 1976
1975 1981
1980 1986
1985 1991
1990 1996
1995 2000

Assumptions (top chart): Retire at age 65 with $1,000,000 and withdraw 4% of the initial portfolio value ($40,000). Withdrawal amount
increased by historical inflation (CPI-U) each year. Returns are based on a hypothetical portfolio, which is assumed to be invested 40% in the
S&P 500 Total Return Index and 60% in the Bloomberg Capital U.S. Aggregate Index. The assumptions are presented for illustrative purposes
only. They must not be used, or relied upon, to make investment decisions. There is no direct correlation between a hypothetical investment
and the anticipated future return of an index. Past performance does not guarantee future results.
Annual inflation (CPI-U) increased from 2.4% in 1966 to 6.3% in 1970; 10-year U.S. Treasury rate increased from 4.93% in 1966 to 7.35% in 1970.
Source: Department of the Treasury, U.S. Bureau of Labor Statistics, J.P. Morgan Asset Management.
 Taking risk gets harder with age GTR 35

Participants’ risk tolerance preferences decrease as they near retirement

Assess your investment
“How would you describe your investment risk tolerance at these different points in time?”1 strategy as you near
retirement

Aggressive Moderately aggressive Moderate Moderately conservative Conservative 78% of 401(k) plan
participants are concerned
about the value of their
Percentage who selected each investment risk category

assets going down just

100%
before they retire and 76%
are worried about a decline
in the markets in the first few
80% years in retirement.

To manage this, consider:

Investing

60% • A target date fund that will

automatically adjust as
you get older

40% • A guaranteed income

solution

• Working with a financial

20% professional on your plan

0%
30s 40s 50s 60s 70s 80s
Age

Source: J.P. Morgan Asset Management Plan Participant Research, 2024. 1Question abridged from original and includes participants’ view
of their future self.
 Consider how to fund your retirement goals GTR 36

Retirement portfolio priorities

Align your portfolio with
your goals
Once you determine how
you want to fund your goals,
Increase Wealth: make the necessary
Investment return exceeds adjustments in your
spending needs investment and spending
Priority: Total return
strategies.

You may also choose a

combination of priorities and
decide if you want to have a
Retirement legacy goal.
Preserve Principal:
Wealth

Spend investment return only

Investing

(income and/or appreciation)

Priority: Generate income

Spend Principal:
Spend investment return and
a portion of your principal
Priority: Sustainable spending
• Protected lifetime income
• A dynamic withdrawal strategy
• A combination of both

Age

Source: J.P. Morgan Asset Management.

 Structuring a portfolio to match investor goals in retirement GTR 37

Building
37 your plan
Considerations Potential solutions
It may be useful to match
What is the time horizon Growth-oriented portfolios dependable income sources
and appropriate planning with regular retirement
Capital preservation strategies spending, while coordinating
strategy for your heirs and your
estate goals? Alternatives1 income-oriented solutions
and a cash reserve to meet
Legacy more variable expenses.

Cash & cash equivalents

How much of your total Variable
spending varies month spending
to month?
Investing

Income distributed from:

• Dividend-paying stocks/funds
• Fixed income securities/funds
How much do • Multi-asset solutions
you regularly Stable Protected lifetime income
spend each
month?
spending
Pension

Social Security

For illustrative purposes only. Fixed income is subject to interest rate risk. Fixed income prices generally fall when interest rates rise. The
price of equity securities may rise or fall because of changes in the broad market or changes in a company’s financial condition, sometimes
rapidly or unpredictably. Investing in alternative assets involves higher risks than traditional investments and is suitable only for the long
term. They are not tax efficient and have higher fees than traditional investments. They may also be highly leveraged and engage in
speculative investment techniques, which can magnify the potential for investment loss or gain.
1Equity, fixed income and cash are considered “traditional” asset classes. The term “alternative” describes all non-traditional asset classes.

They include private and public equity, venture capital, hedge funds, real estate, commodities, distressed debt and more.
Source: J.P. Morgan Asset Management.
 Structuring a portfolio in retirement: the bucket strategy GTR 38

Time-based
$ segmentation
Investment income
& distributions Aligning your time horizon
with an investment approach
$ may help you to be more
comfortable with
maintaining diversified
Investment risk

portfolio allocations in
retirement.

Year 3 For the near-term portfolio,

consider maintaining:
Year 2
Year 1 • Funds to cover 1-3 years
Equities
Investing

of the gap between your

Bonds
Cushion income and spending
Alternatives1 needs
$
Cash & cash • A cushion for unexpected
equivalents
Spending expenses

Portfolio time horizon

1 year 15+ years

Near-term Intermediate-term Longer-term &

needs needs legacy needs
Source: For illustrative purposes only. Bonds are subject to interest rate risks. Bond prices generally fall when interest rates rise. The price
of equity securities may rise or fall because of changes in the broad market or changes in a company’s financial condition, sometimes
rapidly or unpredictably. Equity securities are subject to stock market risk, meaning that stock prices in general may decline over short or
extended periods of time. Investing in alternative assets involves higher risks than traditional investments and is suitable only for the long
term. They are not tax efficient and have higher fees than traditional investments. They may also be highly leveraged and engage in
speculative investment techniques, which can magnify the potential for investment loss or gain.
1Equity, fixed income and cash are considered traditional asset classes. The term “alternative” describes all non-traditional asset classes.

They include private and public equity, venture capital, hedge funds, real estate, commodities, distressed debt and more. J.P. Morgan Asset
Management.
 Goals-based wealth management GTR 39

Short-term goals Medium-term goals Long-term goals

Includes an emergency 5-10 years, e.g., college, home 15+ years, e.g., retirement Divide and conquer
reserve
Aligning your investment
strategy by goal can help
you take different levels of
Cash & cash Equities Equities risk based on varying time
equivalents Bonds Bonds horizons and make sure you
are saving enough to
accomplish your goals – not
just the ones that occur first.
Investing

Range of stock, bond and blended total returns

Annual total returns, 1950-2024
Equities Bonds 50/50 Cash
60% 52%
40% 33% 29%
29% 18%
18% 19% 20% 14% 16% 14%
20% 14% 11% 11%
9% 8%
0%
6% 1% 5%
0% -2% -2% 2% 0% -1% 1% 2% 0% 1%
-20% -13% -16%

-40%
-37%
-60%
1 year 5-year rolling 10-year rolling 20-year rolling
Source (top chart): J.P. Morgan Asset Management.
Source (bottom chart): Bloomberg, FactSet, Federal Reserve, Morningstar, Strategas/Ibbotson, J.P. Morgan Asset Management.
Returns shown are based on calendar year returns from 1950 to 2024. Stocks represent the S&P 500 Total Return Index and Bonds
represent Strategas/Ibbotson for periods prior to 1976 and the Bloomberg Aggregate thereafter. Cash represents the U.S. 90 Day Treasury
Bill Total Return.
Portfolio allocations are hypothetical and are for illustrative purposes only. They were created to illustrate different risk/return profiles and
are not meant to represent actual asset allocation.
 Impact of being out of the market GTR 40

Returns of the S&P 500

Performance of a $10,000 investment between January 3, 2005 and December 31, 2024 Plan to stay invested
$80,000 Losses hurt more than gains
10.4% feel good. Market lows can
$70,000 result in emotional decision
$71,750 Seven of the 10 best days occurred within two weeks of making.
the 10 worst days
• Six of the seven best days occurred after the worst days Taking “control” by selling
$60,000
• The second-worst day of 2020 — March 12 — was out of the market after the
immediately followed by the second-best day of the year worst days is likely to result
$50,000 in missing the best days that
follow. Investing for the long
term in a well-diversified
$40,000 portfolio can result in a
6.1% better retirement outcome.
Investing

$30,000 $32,871

3.5%
$20,000
$19,724
1.3%
$10,000 $12,948 -0.6%
-2.2%
$8,905 -3.7%
$6,386 $4,712
$0
Fully Missed 10 Missed 20 Missed 30 Missed 40 Missed 50 Missed 60
Invested best days best days best days best days best days best days
Source: J.P. Morgan Asset Management using data from Bloomberg. Returns are based on the S&P 500 Total Return Index, an unmanaged,
capitalization-weighted index that measures the performance of 500 large capitalization domestic stocks representing all major industries.
Indices do not include fees or operating expenses and are not available for actual investment. The hypothetical performance calculations
are shown for illustrative purposes only and are not meant to be representative of actual results while investing over the time periods
shown. The hypothetical performance calculations are shown gross of fees. If fees were included, returns would be lower. Hypothetical
performance returns reflect the reinvestment of all dividends. The hypothetical performance results have certain inherent limitations. Unlike
an actual performance record, they do not reflect actual trading, liquidity constraints, fees and other costs. Also, since the trades have not
actually been executed, the results may have under- or overcompensated for the impact of certain market factors such as lack of liquidity.
Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. Returns will fluctuate
and an investment upon redemption may be worth more or less than its original value. Past performance is not indicative of future returns.
An individual cannot invest directly in an index. Data as of December 31, 2024.
 Social Security timing trade-offs GTR 41

Benefits differ by birth year and claim age

Full Retirement Age (FRA) = 100% benefit Understand the
Birth year: 1954 or earlier trade-offs
Age 62 Full Retirement Age: 66 Age 70
Deciding when to claim
Decreased benefits Increased benefits benefits will have a
100% permanent impact on the
75% -6.25% average per year +8% per year 132%
benefit benefit you receive. Claiming
before your full retirement
age can significantly reduce
74.2% Birth year: 1955 (current age: 70) Full Retirement Age: 66 + 2 months 130.7% your benefit, while delaying
increases it.
73.3% 1956 (69) 66 + 4 months 129.3%
In 2017, full retirement age
72.5% 1957 (68) 66 + 6 months 128.0% began transitioning from 66
71.7% 1958 (67) 66 + 8 months 126.7%
to 67 by adding two months
each year for six years. This
70.8% 1959 (66) 66 + 10 months 125.3% makes claiming early even
Social Security /Health

more of a benefit reduction.

Birth year: 1960 or later
Age 62 Full Retirement Age: 67 Age 70

100%
70% -6% average per year +8% per year 124%
benefit

Cost of living increase for Average cost of living

2.5% 2.8%
benefits received in 2025: increase 1985-2024:

For illustrative purposes only. The Social Security Amendments Act of 1983 increased FRA from 65 to 67 over a 40-year period. The first phase
of transition increased FRA from 65 to 66 for individuals turning 62 between 2000 and 2005. After an 11-year hiatus, the transition from 66 to
67 (2017-2022) is complete. This material should be regarded as educational information on Social Security and is not intended to provide
specific advice. If you have questions regarding your situation, you should contact the Social Security Administration and/or your legal or
tax professional.
Source: Social Security Administration, J.P. Morgan Asset Management.
 Maximizing Social Security benefits: maximum earner GTR 42

Cumulative individual maximum benefit by claim age

Full Retirement Age (FRA) = Age 67 Planning opportunity
Breakeven age
Delaying benefits means
FRA/70 $1,941k increased Social Security
$896k income later in life, but your
Claim at 70: $543k portfolio may need to bridge
$4,985 per month
the gap and provide income
until delayed benefits are
received.
62/FRA $1,732k
$889k
Claim at FRA: $604k
$4,020 per month

$1,389k
$600k $799k
Claim at 62:
$2,814 per month
Social Security /Health

Age 62 67 70 77 81 90

At age 62, 100% 91% 85% 66% 52% 18%

probability of
living to at 100% 94% 90% 76% 65% 30%
least age: 1

100% 99% 98% 92% 83% 43%

1Couple assumes at least one lives to the specified age or beyond. Breakeven assumes the same individual, born in 1963, earns the
maximum wage base each year ($176,100 in 2025), retires at the end of age 61 and claims at 62 & 1 month, 67 and 70, respectively. Benefits
are assumed to increase each year based on the Social Security Administration 2024 OASDI Trustee’s Report intermediate estimates
(annual benefit increase of 2.2% in 2026 and 2.4% in 2027 and thereafter). Monthly amounts with the cost-of-living adjustments (not shown
on the chart) are: $4,517 at FRA and $6,014 at age 70. Exact breakeven ages are 76 years & 10 months and 80 years & 8 months.
Source: Social Security Administration, J.P. Morgan Asset Management.
 Social Security benefit claiming considerations GTR 43

Comparison of claim age based on an individual’s expected rate of return and longevity
Color represents the claim age with the highest expected lifetime benefits Consider portfolio
10% returns and your life
9% expectancy
Expected annual rate of return

8% The lower your expected

long-term investment return
7% and the longer your life
Claim at age 62 expectancy, the more it pays
6%
Net of fees

to wait to take your benefit.

5%

4%

3%
Claim at age 70
2%

1%
Social Security /Health

0%
62 67 70 77 81 90 100

Expected longevity

How to use:
• Go to the intersection of your expected rate of return and your expected longevity.
• The color at this intersection represents the Social Security claim age that maximizes total wealth
(cumulative Social Security benefit and investment portfolio) given three claiming options: age 62, Full
Retirement Age (age 67) and age 70.
• Example: For a woman with an expected consistent 5.5% rate of return (net of fees) and life expectancy of 88:
consider claiming at age 70.
Assumes the same individual, born in 1963, retires at the end of age 61 and claims at 62 & 1 month, 67 and 70, respectively. Benefits are
assumed to increase each year based on the Social Security Administration 2024 OASDI Trustee’s Report intermediate estimates (annual
benefit increase of 2.2% in 2026 and 2.4% in 2027 and thereafter). Analysis is based on a maximum earner (all earnings profiles yield similar
results). Expected rate of return is deterministic, in nominal terms, and net of fees.
Source (chart): Social Security Administration, J.P. Morgan Asset Management.
Source (longevity): Social Security Administration 2024 OASDI Trustees Report.
 Claiming Social Security: decision tree GTR 44

Additional considerations:

Consider health status and current age

START HERE when estimating life expectancy
Page 4 and 5: Life expectancy probabilities
Are you working?

Y N Do you have other sources of income?

Y N

Consider claiming
your benefit Understand what you may be leaving
Delay claiming on the table at older ages
Page 42: Maximizing Social Security benefits
Consider taking Age
Do you expect to live beyond age 77? N your benefit as
Social Security /Health

early as age 62 62
Y

Consider taking Age

Do you expect to live beyond age 81? N benefit at Full Take your expected rate of return on your
Retirement Age1 67 portfolio into account
Y
Page 43: Social Security benefit claiming
considerations

Consider waiting Age

to age 70 to take
your benefit 70

This material should be regarded as educational information on Social Security and is not intended to provide specific advice. If you have
questions regarding your situation, you should contact the Social Security Administration and/or your legal or tax professionals.
1Full Retirement Age (FRA) of 67 is for individuals born 1960 or later. This decision tree is also appropriate for other FRAs.

Source: Social Security Administration, J.P. Morgan Asset Management.

 Debunking Social Security solvency myths GTR 45

1 Myth: “Young workers will get nothing from Social Security.”

Younger, higher earners
Funded status of the combined Old-Age Survivor and are likely to experience
Disability (OASDI) Trust Funds some changes
100% Taxes and benefits cuts are
17% 27%
80% unpopular, so Congress may
Unfunded if Congress
does not act put off addressing the issue
60% until closer to 2035, when the
40% 83% combined trust fund is
73%
Ongoing payroll tax projected to be depleted.1
20%
funding
0% • Workers with earnings
above the payroll tax cap
2035 2098
may pay more in taxes.

Myth: “I should take my benefit now because it might be cut later.” • For young workers, there
2 will still be payroll taxes to
Social Security /Health

Age of voters in 2022 fund most of your

benefits, but high-income
18-24, 6% workers are most likely to
see gradual changes if
there are benefit cuts.
25-34, 13% Older voters have
power in numbers
35-44, 15%

45-64, 36%
66%
65+, 30%

1 TheSocial Security Old Age and Survivor Trust Fund is projected to be depleted in 2033, but combined with the Disability Trust Fund the
projected depletion date is 2035. This material should be regarded as general information and is not intended to provide advice. If you have
questions, contact the Social Security Administration and/or your legal or tax professional. Source (top chart): 2024 Social Security Trustees
Report. Source (bottom chart): Kaiser Family Foundation, number of voters as a share of the voting population by age.
 Three steps for Medicare coverage GTR 46

1 Sign up for Parts A and B on Medicare.gov

Medicare details
Part B Sign up for all parts of
Part A
(inpatient hospital insurance) + (insurance that covers doctor visits, Medicare the month before
tests and outpatient hospital visits) the month you turn age 65 to
avoid coverage gaps unless
your employer has
2 Choose your plan confirmed you have
creditable coverage.
Option 1 Re-evaluate your choices
Medigap Part D Vision, dental and each year.
Original Medicare (covers gaps in drug coverage
accepted by all
hearing
Parts A & B; also
Medicare providers (will have co-pays (must buy separate
called
and deductibles) policies if want coverage)
supplemental)
Social Security /Health

Option 2
Medicare Advantage/ Includes Part D drug coverage
Part C limited to a May cover some vision, dental, hearing and other expenses
network of providers (will have co-pays and deductibles for medical and drug expenses)

3 Prepare for additional expenses: Medicare does not cover most long-term care costs1

For help, visit the Medicare Rights Center at www.medicarerights.org or your State Health Insurance
Assistance Program (SHIP) at www.shiptacenter.org.

1Medicare does pay for medically necessary skilled nursing facility or home health care, with strict requirements that are difficult to meet on

a limited basis, and for some hospice care. If you transfer assets to others there is a five-year “look back” where the government will recover
the assets transferred if you go on Medicaid. This is not personal advice. Consult an elder care attorney if you have questions.
Source: Medicare.gov as of December 31, 2024; J.P. Morgan Asset Management.
 Rising health care costs in retirement GTR 47

Original Medicare costs in retirement (in 2025 dollars)

Monthly amount per person A growing concern
$1,650 $1,611 Annual expenses per person
$91 in 2025 are $6,856.
$1,520
$1,500
Given variation in health care
Uncertainties (health care cost inflation from year to
$1,350
$443 inflation variability, Medicare year, it may be prudent to
solvency issues) assume an annual health
$1,200
care inflation rate of 6.0%,
Part B premiums (doctors, tests & which may require growth as
$1,050 outpatient hospital insurance) well as current income from
$304 your portfolio in retirement.
$900 6.0% Part D premiums & average
prescription out-of-pocket costs
$750 5.8%

$224 Other out-of-pocket costs

Social Security /Health

$600 $572 • Vision, dental & hearing

• Parts A & B deductibles not
$185 covered by Medigap
$450
Medigap Plan G (optional
$300 $126 supplemental policy to fill in
$549
gaps of Parts A & B)
$112
$150
$149
$0
Age 65 (2025) Age 95 (2055)

In 2025 dollars
Estimated future value total average monthly cost at age 95 is $3,282. Today’s dollar calculation used a 2.4% discount rate to account for
overall inflation. Medigap premiums typically increase with age after purchase, in addition to inflation, except for the following states: AR, AZ,
CT, FL, GA, ID, MA, ME, MN, MO, NY, VT, WA. For local information, contact the State Health Insurance Assistance Program (SHIP)
https://www.shiptacenter.org/. Plan G premium is nationwide average for non-smokers. If Plan G is not available, analysis includes the
most comprehensive plan available.
Source: HealthView Services, December 2024; Kaiser Family Foundation, Key Facts About Medigap Enrollment, October 2024.
 Maximizing an HSA for health care expenses GTR 48

Health Savings Accounts (HSAs) are triple tax advantaged1

Maximum family contribution with catch-ups, 7.25% return and 24% marginal tax rate Make the most of it

$350,000 Investing your HSA

contributions for the long
$41,880 Tax deductions term and paying for current
$300,000 $299,660 provides about 14 years health care expenses out of
$299,660: ending balance
of qualified Medicare-related other savings can be a very
Tax free for qualified health care
health care expenses for a couple. tax-efficient strategy if you
expenses in retirement
$250,000 are able to do so.
$125,150 Tax-deferred earnings
$200,000

$150,000
Social Security /Health

$100,000 $174,510 Contributions with

catch-ups for the last 10 years

$50,000

$0
50 52 54 56 58 60 62 64
Age

1Must have a qualifying high-deductible health plan to make contributions. Funds in the HSA may be withdrawn tax free for qualified
medical expenses unless a credit or deduction for medical expenses is claimed. After age 65 funds also may be withdrawn for any reason
and taxed as ordinary income without penalty. Some health insurance premiums may be qualified expenses such as COBRA coverage,
coverage while receiving state or federal unemployment compensation, Medicare Parts B and D premiums and qualified long-term care
(LTC) insurance premiums up to certain limits but excludes Medigap/Medicare supplement policies and most hybrid products that
combine LTC with annuities and life insurance. See IRS Publications 969 and 502. This is not intended to be individual tax advice; consult a
tax professional.
The above example is for illustrative purposes only and not indicative of any investment. 2025 family contribution limit of $8,550 is adjusted
for inflation of 2.4% for 15 years with catch-up contributions of $1,000 per person starting at age 55 in 2030. Does not include account fees.
Present value of illustrated HSA is $208,555. Estimated savings from tax deductions at a 37% marginal rate are $64,570. Assumes cash or
income used for health care expenses is not withdrawn from an account with a tax liability. Assumes $2,000 was held in a cash account
and not earning a return. Individual 2025 contribution limit is $4,300.
Source: IRS.gov; Medicare.gov; J.P. Morgan Asset Management.
 Long-term care planning GTR 49

Duration of paid care 65+ if paid care is used

Create a care plan
Women Men
45% 41% The monetary value of care
38% 36% from family and friends is
33% roughly equal to paid care.1
30% 26% 26%
Women are more likely to
require care and need more
years of paid care if paid
15%
care is used.

A care plan may help you:

0%
<3 years 3-5 years 5+ years • Avoid burdening others

• Ensure your family

Lifetime cost of care 65+ if paid care is used understands your wishes
Social Security /Health

35% • Have more control over

30% your care
Average
30%
26%
25% Women: $332k
20% Men: $240k
20%
14%
15%
10%
10%

5%

0%
<$30k $30k-$90k $90k-$180k $180k-$300k >$300k+

1Average value of unpaid care when unpaid care is used is $249,600 for women and $235,300 for men.

Long-term care includes needing help with two or more activities of daily living such as eating, dressing, bathing, transferring and toileting
or severe cognitive impairment. Average of cost is adjusted to January 2024 dollars and includes all payors.
Source: U.S. Department of Health and Human Services, APSE Brief, August 2022, Long-term Services and Supports for Older Americans,
Risks and Financing, 2022; J.P. Morgan Asset Management.
 65 and working: should I sign up for Medicare? GTR 50

Important information:
Check with your employer:
Sign up for all parts of Creditable coverage means
do you have creditable N 1
START HERE Medicare coverage at least as good as
medical coverage?1
Medicare. Ask for proof of
Do your homework: will Y creditable coverage each year.
Medicare coverage be
better and/or less N
expensive than
Check with your employer: Sign up for Part A and 2 Signing up for Medicare and
employer coverage?
do you have creditable N Part D and stop HSA contributing to a Health
prescription coverage?2 contributions Savings Account (HSA) will
Y
result in tax penalties.4
Y

Do you contribute Have you filed or will Signing up for Social Security
3
to a Health Savings N you file for Social will mean automatic enrollment
Account (HSA)? Security in 6 months? in Parts A and B. Part A will be
retroactive for 6 months (but
Y Y N
not before age 65) and you will
not be able to opt out of it.
Reference

Drop employer Do not sign up for Stop HSA contributions Do not sign up
coverage and sign Medicare and opt out of Medicare for Medicare
up for all parts of Part B after you sign up for
Medicare Social Security3

1Employer coverage that is not creditable will become secondary after Medicare has paid. If you have creditable employer coverage, Medicare
will be secondary after your employer plan has paid. 2Because Medicare enhanced Part D coverage in 2025, fewer employer drug plans will be
creditable than in the past. 3To disenroll in Part B you must have an interview with the Social Security Administration and use Form CMS 1763.
4Total HSA contributions for the year in excess of the maximum contribution for the year divided by the number of months you are eligible to
make contributions will result in tax penalties (6% of the excess contribution each year). This is not intended to be tax advice; consult your tax
professional. For more information, see www.mymedicarematters.org/enrollment/am-i-eligible, sponsored by the National Council on Aging.
Source: IRS Publication 969, National Council on Aging and Medicare.gov websites as of December 31, 2024; J.P. Morgan Asset Management.
 Variation in Medicare Advantage costs GTR 51

Estimated Medicare Advantage with Part D and out-of-pocket expenses

Monthly amount per person Dramatic differences in
costs depending on
$1,200
health
Out-of-pocket costs vary (includes
Be prepared to pay more for
co-pays, deductibles and
$1,000 prescriptions) $1,077 high health care in the event you
experience a health issue,
which becomes more
Medicare Advantage premium $917 average common as one ages.
$800
• Be aware: Although
Total costs $765 low Medicare Advantage
plans have out-of-pocket
$600 caps, those limits do not
include prescriptions.

$448 high • Consider maintaining an

$400 emergency reserve fund
$377 average for high out-of-pocket
$319 low cost periods.
$493
$200

$216
Reference

$0
Age 65 (2025) Age 95 (2055)

In 2025 dollars

Total costs = annual premium + out-of-pocket costs. High costs: weighted average of medical costs (70th percentile) and prescription costs
(65th percentile). Low costs: weighted average for medical costs (25th percentile) and prescription costs (35th percentile). Plans include
Part D and exclude those with subsidies for low-income beneficiaries. Today’s dollar calculation used a 2.4% discount rate.
Estimated future value of total average costs at age 95 is $1,868. Cost estimates include increased use of medical care at older ages and will
vary based on plan characteristics.
Source: HealthView Services, December 2024.
 2025 income-related monthly adjustment amounts GTR 52

The adjustment amount is the same for all income levels within a band
If you go over a threshold, you pay the additional premium for that band Surcharge details
There may be a bigger impact
for singles and surviving
Modified Adjusted Gross Income
spouses: Medicare
based on 2023 tax year filing1
surcharge thresholds for
Additional monthly premium amount singles are half of the
per person thresholds for couples.
Filing single Filing jointly Parts B & D in 2025
Filing an appeal?
If you have stopped work
$106,000-$133,000 $212,000-$266,000 $87 or you have lower income
due to circumstances
outside of your control,
you might be eligible for an
$133,000-$167,000 $266,000-$334,000 $219 appeal. See form SSA-44 for
details:
https://www.ssa.gov/forms/
$167,000-$200,000 $334,000-$400,000 ssa-44-ext.pdf
$352

$200,000-$500,000 $400,000-$750,000 $484

Reference

$500,000 or more $750,000 or more $528

$0 $200 $400 $600

1The Social Security Administration uses the most recent federal return supplied by the IRS. If you amended your return in a way that
changes your adjustment amount, you may need to contact your Social Security office.
Source: Medicare.gov as of November 2024.
This is not meant to be personal tax advice. Please consult your tax professional for specifics for your situation. Modified Adjusted Gross
Income (MAGI) for purposes of calculating Medicare surcharges is Adjusted Gross Income (AGI) plus tax-exempt interest income.
Thresholds increase each year with inflation, except the top threshold, which was added in 2019; this top threshold is set to annually inflate
starting in 2028.
 Long-term care planning options GTR 53

Consider utilizing more than one option

Start planning early
• Is it feasible to buy less
Family & friends insurance coverage and
Will you want to move closer? combine it with other
Medicaid: solutions?

After exhausting
• Health Savings Accounts
Savings/expense reductions other options
(HSAs) may be used tax
Some expenses such as travel may go down free for qualified expenses
Rules to qualify in retirement.2
vary by state but
generally you must • Prefer care at home?
Insurance be low income with
Options: traditional long-term care insurance, combination life Consider how you will
few assets to qualify1 remain socially connected.
and annuity products, life insurance for a surviving spouse and
deferred annuities for income late in life

Life plan communities

Often starts with independent living and offers additional services
or facilities when needed.
For more information: https://www.mylifesite.net/
Reference

Home equity
Second homes may be sold; the home equity in your primary
residence may be used; credit availability and home value may
fluctuate

1If
you transfer assets to others, there is a five-year “look back” where the government will recover the assets transferred if you go on
Medicaid. This is not personal advice; consult an elder care attorney if you have questions.
2HSAs may be used to fund qualified traditional long-term care policy premiums up to certain limits. Necessary home improvements may
qualify if they do not improve the value of your home. Services for chronically ill individuals who are unable to perform two or more activities
of daily living or who have severe cognitive impairment may be qualified if they are part of a prescribed plan from a licensed practitioner.
For a list of qualified expenses, see IRS Publication 502 or consult your tax professional; this is not meant to be personal tax advice.
Source: J.P. Morgan Asset Management.
 Retirement plan contribution and deferral limits: 2024/2025 GTR 54

Type of retirement account Specifics 2024 2025

401(k) elective deferral limit (with catch-up $23,500 ($31,000 age 50-59
$23,000 ($30,500 age 50+)
contribution/special catch-up age 60-63) and 64+/$34,750 age 60-63)
Annual defined contribution limit $69,000 $70,000
401(k), 403(b), 457(b) Annual compensation limit $345,000 $350,000
Highly compensated employee threshold $155,000 $160,000
403(b)/457 elective deferrals (with catch-up $23,500 ($31,000 age 50-59
$23,000 ($30,500 age 50+)
contribution/special catch-up age 60-63) and 64+/$34,750 age 60-63)
SIMPLE employee deferrals (with catch-up $16,500 ($19,500 age 50-59
SIMPLE IRA $16,000 ($19,500 age 50+)
deferral) and 64+/$21,750 age 60-63)
Maximum contribution2 $69,000 $70,000
SEP IRA SEP minimum compensation $750 $750
SEP annual compensation limit $345,000 $350,000
Maximum contribution amount (with catch-up Single: $4,150 ($5,150) Single: $4,300 ($5,300)
contribution age 55 and over) Family: $8,300 ($9,300) Family: $8,550 ($9,550)
Health Savings Account Single: $1,600 Single: $1,650
Minimum deductible
(HSA) Family: $3,200 Family: $3,300
Single: $8,050 Single: $8,300
Maximum out-of-pocket expenses
Family: $16,100 Family: $16,600
Wage base $168,600 $176,100
$22,320/year (before FRA*) $23,400/year (before FRA*)
Maximum earnings test exempt amounts3
Reference

Social Security $59,520/year (in year of FRA*) $62,100/year (in year of FRA*)

Maximum Social Security benefit at FRA* $3,911/month $4,018/month

Defined benefit – maximum annual benefit at retirement $275,000 $280,000

*FRA is Full Retirement Age for Social Security. Assumes FRA at age 67.
1Employer may either match employee’s salary reduction contributions dollar for dollar up to 3% of employee’s compensation or make non-

elective contributions equal to 2% of compensation up to the annual compensation limit. IRS Publication 560.
2Employer contributions may not exceed the annual defined contribution limit or 25% of compensation. Other rules apply for self-employed

individuals. IRS Publication 560.

3In calendar years before FRA, benefit reduced $1 for every $2 of earned income above the limit; during year of FRA, benefit reduced $1 for

every $3 of earned income in months prior to FRA.

Source: IRS.gov; SSA.gov
Disclosures GTR 55

Unless otherwise indicated, all illustrations are shown in U.S. dollars. Model
AssetPortfolio
class Details (Equity%/Bond%) Source:40/60
20/80 PI-AA-MODELS_4Q20 0903c02a81cfc27a
50/50 60/40 80/20
Past performance is no guarantee of comparable future results.
U.S. large cap growth 4.5% 8.8% 11.0% 13.3% 17.5%
Diversification does not guarantee investment returns and does not eliminate the risk of
loss. U.S. large cap value 4.5% 8.8% 11.0% 13.3% 17.5%
Indices are unmanaged and an individual cannot invest directly in an index. Index returns U.S. mid/small cap 2.3% 4.5% 5.5% 6.5% 9.0%
do not include fees or expenses.
U.S. REITs 1.0% 2.0% 2.5% 3.0% 4.0%
The S&P 500 Index is widely regarded as the best single gauge of the U.S. equities
market. This world-renowned index includes a representative sample of 500 leading Developed market equities 5.5% 11.3% 14.0% 16.8% 22.5%
companies in leading industries of the U.S. economy. Although the S&P 500 Index
focuses on the large cap segment of the market, with approximately 75% coverage of Emerging market equities 2.3% 4.8% 6.0% 7.3% 9.5%
U.S. equities, it is also an ideal proxy for the total market. An investor cannot invest
U.S. investment-grade bonds 61.8% 45.8% 38.0% 30.0% 14.0%
directly in an index.
The Bloomberg Capital U.S. Aggregate Index represents securities that are SEC- U.S. high yield bonds 12.3% 9.3% 7.5% 6.0% 3.0%
registered, taxable and dollar denominated. The index covers the U.S. investment-grade Emerging market debt 4.0% 3.0% 2.5% 2.0% 1.0%
fixed rate bond market, with index components for government and corporate securities,
mortgage pass-through securities and asset-backed securities. These major sectors U.S. cash 2.0% 2.0% 2.0% 2.0% 2.0%
are subdivided into more specific indices that are calculated and reported on a regular
basis. Model portfolios can only be distributed by Intermediaries where Advisory Portfolios are
available.
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