The importance of utilizing long-term investment strategies, adopting a retirement income plan that provides confidence to spend, and understanding Social Security strategies highlight the 13th edition of J.P. Morgan Asset Management’s annual Guide to Retirement.
Released Tuesday, this year’s Guide offers a fresh perspective on the evolving landscape of retirement planning. While focusing on the aforementioned key themes, it also includes a new section on Social Security/Health, highlighting the important role these topics play in shaping retirement planning discussions.
By utilizing anonymized household data and proprietary research, the Guide provides actionable insights to help advisors, consultants, defined contribution plan participants and sponsors navigate unforeseen retirement roadblocks and improve retirement outcomes.
“Retirement means different things to different people, and planning for it involves a multitude of decisions which can feel daunting or overwhelming. However, the core principles of a secure retirement are approachable and within reach. It’s more important than ever to empower individuals with the tools and knowledge they need to secure their retirement future,” said Michael Conrath, Chief Retirement Strategist at J.P. Morgan Asset Management.
Here is a closer look at the four key themes featured in the 2025 Guide to Retirement:
Theme #1: Don’t plan to be average—know your savings goal. It is important to plan for a longer life expectancy, which could mean 35 years in retirement. More than half of female non-smokers in excellent health will pass age 90, and 4 in 10 healthy non-smoking men are expected to do the same. Given this, understanding your savings target and investing a portion of your retirement portfolio for growth is important to maintain purchasing power over time.
Theme #2: Savings alone won’t fund retirement—invest for the long-term. Emotional reactions to market declines can harm portfolios since the best days are likely to occur close to the worst days. Missing the 10 best days of the market over the past 20 years would have reduced a portfolio’s annualized return by almost 50%; missing the top 40 days would have a negative annualized return on the original investment. Staying invested with a diversified long-term investment strategy tends to produce a better retirement outcome.
Theme #3: Know what to expect from Social Security. JPMAM research indicates that waiting until age 70 to claim Social Security can boost benefit checks by 24% compared to claiming at full retirement age for those born in 1960 or later. On the other hand, starting benefits early at age 62 means receiving only 70% of the full retirement amount, resulting in a permanent reduction. It’s crucial to understand the benefits and tradeoffs of claiming decisions.
Theme #4: Adopt a retirement income plan that gives you confidence to spend. More guaranteed income may equal less fear of spending. A typical household might fund their retirement from a mix of investment accounts plus guaranteed income sources. JPMAM research shows that having more guaranteed income may result in increased spending in retirement, for households with similar levels of total retirement wealth. This may be because people feel comfortable spending Social Security pensions and annuities while they are more reluctant to spend the capital of their portfolio.
“The ability to simplify the answers to the most common retirement planning questions is crucial in today’s rapidly evolving financial landscape,” said Sharon Carson, J.P. Morgan Asset Management Retirement Strategist. “With the Guide to Retirement, our goal is to shed light on the most salient retirement issues facing U.S. retirees, such as why it is important to invest over the long-term and what they should consider regarding their Social Security benefits. Our proprietary research can help individuals at all life stages enhance their retirement plans and financial security.”
To view the full 2025 Guide to Retirement, click here.
SEE ALSO:
• How America Saves 2025 Preview: 5 Key Takeaways
• Key Role of 401(k) Auto-Enrollment, Employer Matching Highlighted in Study
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
