J.P. Morgan Asset Management National Retirement Survey Finds Call for Help Among Workers

 J.P. Morgan Asset Management National Retirement Survey Finds Call for Help
                                Among Workers

--More than 40% of workers plan to "wing it" in retirement--

Action is needed: increased adoption of auto features can drive better

J.P. Morgan 2013 Plan Participant Survey Findings:

PR Newswire

NEW YORK, June 12, 2013

NEW YORK, June 12, 2013 /PRNewswire/ --A nationwide poll conducted by J.P.
Morgan Asset Management of more than 1,000 American workers participating in a
401(k) plan has found that the vast majority of savers are at a loss for how
to manage retirement planning and acknowledge that they need professional

Reality is setting in with American workers. While half say that they would
like to retire before the age of 65, only 20% believe they will realistically
be able to do so. This leaves two options: working longer or saving more.

When it comes to saving more, workers would strongly welcome help with their
401(k) and other retirement savings guidance.

  oMore than three fourths of participants (76%) say they need professional
    assistance with key elements of retirement planning, including how much to
    save and how to allocate their investments.
  oYet despite this, almost half of workers (48%) don't have access to help
    through work or on their own.

Confusion about how much to save is the most pressing issue for participants.

  oAbout 53% estimate they will need less than 75% of their salary in
    retirement to live comfortably, while most financial experts suggest more
    will be required.
  oOnly 13% believe they are on track to obtain a replacement rate of 75% or
  oLess than 30% of respondents are confident that their savings will last
    throughout their retirement.
  oFour in 10 do not have any target at all for how much to save for

Just over 40% of participants plan to "wing it" in retirement.

"Which statement best describes your retirement planning?"

  oParticipants express strong interest in a number of tools that can help
    them make better decisions about using their 401(k) plans. Interest in a
    tool that projects how much will be accumulated in the plan at retirement
    generates the strongest interest.
  oParticipants further express a great deal of interest in education about
    how to invest and manage 401(k) plan accumulations once they are retired.
    This is an area in which most participants feel they do not have enough
    knowledge to do an adequate job of investing and financial management.
    Seven in 10 (70%) are interested in obtaining guaranteed lifetime income
    and 23% are interested in how to invest after retirement.

"Clearly there is still more work to be done in helping participants get the
most out of workplace retirement savings vehicles," said Catherine Peterson,
Director of Retirement Insights at J.P. Morgan Asset Management. "These
findings make it clear that workers do need help to make better decisions. We
recommend at a minimum incorporating the combination of features like
auto-enrollment and auto-escalation programs into plan design to drive savings
rates. More targeted, personalized participant communications, particularly
around retirement income projections, is another important piece of the

Participants feel overwhelmed about making retirement planning decisions.

  oFinancial pressures and paying monthly expenses register as the largest
    source of worry – above job security and health. Among those who worry,
    one-third suggest that financial pressures consume them at work often or
    all of the time, while another 45% say they do so sometimes.
  oOnly 20% of participants felt that they could absorb the information being
    provided by their plan about retirement saving. 
  oNine in 10 participants are willing to spend more time learning how to
    make better use of their 401(k) program. About 86% were interested in
    doing a financial plan for retirement.
  oStill, a significant proportion of participants do not take the time to
    use the information available to them to learn about the plan, and many
    feel utterly unable to make decisions about investing.

Additional findings:

  oA strong majority of participants review their account statements, but
    they rarely make changes in their investments. In fact, less than half say
    they know how to adjust their monthly 401(k) contributions and even fewer
    know how to change their investment allocation. However, three-quarters
    check their overall balances and almost as many examine how their account
    balance changed since their last statement.
  oFour in 10 have money from a prior retirement plan that they have not
    rolled into their current plan.
  oTarget date funds are an effective way of helping participants attain an
    effective asset allocation and properly rebalance their portfolios. Four
    in five believe it is important that these plans be offered to

J.P. Morgan Asset Management conducted 1,009 online interviews among the
general population of 401(k) participants from Oct. 2-18, 2012. Respondents
had to be employed full- or part-time at a for-profit organization with at
least 50 employees, be at least 18 years old, and have contributed to a 401(k)
in the last 12 months.

  oRespondents were asked about how they make decisions about retirement
    planning and their 401(k) plan, their level of engagement in the planning
    process, and their preferences regarding automatic features. A series of
    questions also was asked to gather demographic details about respondents.

About J.P. Morgan Asset Management – Retirement

J.P. Morgan Retirement, with defined contribution assets under management of
$85 billion, is a leading comprehensive retirement solutions provider
dedicated to improving individual retirement outcomes. J.P. Morgan Retirement
Plan Services provides bundled recordkeeping services to more than 650 clients
and 2 million plan-level participants, representing more than $158 billion in
retirement plan assets (as of April 30, 2013). 

About J.P. Morgan Asset Management

J.P. Morgan Asset Management, with assets under supervision of approximately
$1.9 trillion and assets under management of $1.5 trillion (as of 3/31/13), is
a global leader in investment management. J.P. Morgan Asset Management's
clients include institutions, retail investors and high-net worth individuals
in every major market throughout the world. J.P. Morgan Asset Management
offers global investment management in equities, fixed income, real estate,
hedge funds, private equity and liquidity. JPMorgan Chase & Co. (NYSE: JPM),
the parent company of J.P. Morgan Asset Management, is a leading global asset
management firm with assets of approximately $2.1 trillion and operations in
more than 60 countries. Information about JPMorgan Chase & Co. is available
at www.jpmorganchase.com.

J.P. Morgan Asset Management is the marketing name for the asset management
businesses of JPMorgan Chase & Co.

SOURCE J.P. Morgan Asset Management

Website: http://www.jpmorganchase.com
Contact: Kristen Chambers, 212-622-4111, kristen.chambers@jpmchase.com
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