J.P. Morgan Asset Management Announces SmartRetirement Lifetime Income℠
J.P. Morgan Asset Management has unveiled SmartRetirement Lifetime Income, an innovative retirement income solution designed to simplify the saving and spending phases of retirement. This target date offering aims to reduce portfolio volatility near retirement and provide access to lifetime income payments through unaffiliated insurance companies.
Key features include:
- A stable value structure for income generation
- Transparency and flexibility for retirement savers
- Personalized retirement income strategy
- Support from multiple insurers, including Equitable and Prudential
The solution allows participants to save using familiar target date funds and transition to a personalized retirement income strategy. It's based on J.P. Morgan's proprietary data on participant savings and Chase's spending data across 66 million U.S. households.
J.P. Morgan Asset Management ha presentato SmartRetirement Lifetime Income, una soluzione innovativa per il reddito da pensionamento progettata per semplificare le fasi di risparmio e spesa durante la pensione. Questa offerta con data target mira a ridurre la volatilità del portafoglio vicino alla pensione e a fornire accesso a pagamenti di reddito vitalizio tramite compagnie assicurative non affiliate.
Le principali caratteristiche includono:
- Una struttura a valore stabile per la generazione di reddito
- Trasparenza e flessibilità per i risparmiatori in pensione
- Strategia di reddito per la pensione personalizzata
- Supporto da più assicuratori, tra cui Equitable e Prudential
La soluzione consente ai partecipanti di risparmiare utilizzando fondi a data target familiari e di passare a una strategia di reddito per la pensione personalizzata. Si basa sui dati proprietari di J.P. Morgan sui risparmi dei partecipanti e sui dati di spesa di Chase in 66 milioni di famiglie americane.
J.P. Morgan Asset Management ha presentado SmartRetirement Lifetime Income, una solución innovadora para ingresos de jubilación diseñada para simplificar las fases de ahorro y gasto durante la jubilación. Esta oferta de fecha objetivo tiene como objetivo reducir la volatilidad de la cartera cerca de la jubilación y proporcionar acceso a pagos de ingresos de por vida a través de compañías de seguros no afiliadas.
Las características clave incluyen:
- Una estructura de valor estable para la generación de ingresos
- Transparencia y flexibilidad para los ahorradores de jubilación
- Estrategia de ingresos para la jubilación personalizada
- Apoyo de múltiples aseguradoras, incluyendo Equitable y Prudential
La solución permite a los participantes ahorrar utilizando fondos de fecha objetivo familiares y pasar a una estrategia de ingresos para la jubilación personalizada. Se basa en los datos patentados de J.P. Morgan sobre el ahorro de los participantes y los datos de gasto de Chase en 66 millones de hogares estadounidenses.
J.P. Morgan 자산운용은 SmartRetirement Lifetime Income을 발표했습니다. 이 혁신적인 은퇴 소득 솔루션은 은퇴 시기 동안의 저축 및 지출 단계를 단순화하도록 설계되었습니다. 이 목표 날짜 제안은 은퇴 근처에서 포트폴리오 변동성을 줄이고 비계열 보험회사를 통해 평생 소득 지급에 접근할 수 있도록 하는 것을 목표로 합니다.
주요 특징은 다음과 같습니다:
- 소득 생성을 위한 안정적인 가치 구조
- 은퇴 저축자를 위한 투명성과 유연성
- 맞춤형 은퇴 소득 전략
- Equitable 및 Prudential을 포함한 여러 보험사로부터의 지원
이 솔루션은 참가자가 친숙한 목표 날짜 펀드를 사용하여 저축하고 개인화된 은퇴 소득 전략으로 전환할 수 있도록 합니다. 이 데이터는 J.P. Morgan의 참가자 저축에 대한 독점 데이터와 미국 내 6600만 가구의 지출 데이터를 바탕으로 하고 있습니다.
J.P. Morgan Asset Management a dévoilé SmartRetirement Lifetime Income, une solution innovante pour les revenus de retraite conçue pour simplifier les phases d'épargne et de dépenses pendant la retraite. Cette offre à date cible vise à réduire la volatilité du portefeuille à l'approche de la retraite et à fournir un accès à des paiements de revenu à vie par le biais de compagnies d'assurance non affiliées.
Les principales caractéristiques incluent :
- Une structure de valeur stable pour la génération de revenus
- Transparence et flexibilité pour les épargnants en retraite
- Stratégie de revenu de retraite personnalisée
- Soutien de plusieurs assureurs, y compris Equitable et Prudential
La solution permet aux participants d'épargner en utilisant des fonds à date cible familiers et de passer à une stratégie de revenu de retraite personnalisée. Elle repose sur les données propriétaires de J.P. Morgan concernant les économies des participants et les données de dépense de Chase auprès de 66 millions de ménages américains.
J.P. Morgan Asset Management hat SmartRetirement Lifetime Income vorgestellt, eine innovative Einkommenslösung für den Ruhestand, die darauf abzielt, die Spar- und Ausgabenphasen des Ruhestands zu vereinfachen. Dieses Ziel-Datum-Angebot zielt darauf ab, die Portfoliovolatilität kurz vor der Rente zu reduzieren und den Zugang zu lebenslangen Einkommenszahlungen über nicht verbundene Versicherungsgesellschaften zu ermöglichen.
Zu den wichtigsten Funktionen gehören:
- Eine stabile Wertstruktur zur Einkommensgenerierung
- Transparenz und Flexibilität für Rentensparer
- Personalisierte Einkommensstrategie für den Ruhestand
- Unterstützung durch mehrere Versicherer, darunter Equitable und Prudential
Die Lösung ermöglicht es den Teilnehmern, mit bekannten Ziel-Datum-Fonds zu sparen und zu einer personalisierten Einkommensstrategie für den Ruhestand überzugehen. Sie basiert auf den proprietären Daten von J.P. Morgan über die Ersparnisse der Teilnehmer und den Ausgabedaten von Chase in 66 Millionen US-Haushalten.
- Introduction of a new retirement income solution, potentially increasing revenue streams
- Collaboration with major insurers like Equitable and Prudential, expanding market reach
- Utilization of proprietary data from 66 million U.S. households for product design
- Experienced portfolio managers with 45 years of combined industry experience leading the initiative
- None.
Insights
J.P. Morgan's new SmartRetirement Lifetime Income solution represents a significant innovation in the retirement planning space. By combining target date funds with annuity contracts, it addresses a important need in the market for transparent and flexible lifetime income options. This product could potentially increase J.P. Morgan's market share in the competitive retirement solutions sector.
The partnership with established insurers like Equitable and Prudential adds credibility and reduces risk for J.P. Morgan. However, the success of this product will largely depend on its adoption rate among plan sponsors and participants, as well as its performance compared to traditional retirement solutions. Investors should monitor the product's uptake and fee structure, as these will be key indicators of its impact on J.P. Morgan's bottom line.
The SmartRetirement Lifetime Income solution is a game-changer in addressing the retirement income challenge. Its innovative approach of combining familiar target date funds with annuity-based income streams offers a compelling solution to the longevity risk faced by retirees. The product's flexibility allows participants to adjust their strategy as needed, which is important given the unpredictable nature of retirement planning.
The use of J.P. Morgan's proprietary data on participant savings and Chase's spending data across 66 million U.S. households provides a robust foundation for tailoring the product to real-world retirement needs. This data-driven approach, coupled with the expertise of seasoned portfolio managers, positions the product well to meet the complex demands of retirement income planning. However, the true test will be in its ability to deliver consistent, reliable income streams over extended periods.
The launch of SmartRetirement Lifetime Income reflects a growing trend in the retirement solutions market towards in-plan decumulation options. This product addresses the increasing demand from plan sponsors to provide comprehensive retirement solutions that extend beyond the accumulation phase. The involvement of multiple insurers adds a layer of risk diversification that could appeal to cautious investors and plan sponsors.
However, the success of this product will hinge on its ability to overcome the complexity barrier often associated with annuity-based products. J.P. Morgan's emphasis on transparency and familiarity through the use of target date funds is a strategic move to increase adoption. Market reception will be critical and competitors will likely watch closely to see if this hybrid model gains traction, potentially spurring similar offerings across the industry.
-Solution offers an innovative lifetime income strategy providing transparency and flexibility to retirement savers-
"Retirement savers want a solution that turns complexity into clarity, allowing them to have the certainty of a source of income they cannot outlive, without giving up control of their savings," said Steve Rubino, Head of Retirement for J.P. Morgan Asset Management. "We're excited about SmartRetirement Lifetime Income's innovative design, including the lifetime income feature supported by insurers. This solution simplifies the saving and spending phases of retirement savings, leverages products familiar to plans and participants, and makes it easy to adjust your retirement income strategy as life's priorities change."
"The combination of J.P. Morgan's extensive investment capabilities with a solution offered by insurers that is designed to provide lifetime income will help more people achieve their retirement goals," said Dan Oldroyd, Head of Target Date Strategies at J.P. Morgan Asset Management. "Retirement income solutions that utilize annuity products can feel complex and opaque to plan sponsors and participants. We believe our use of a target date offering complemented by annuity contracts results in greater transparency for our investors."
SmartRetirement Lifetime Income allows plan participants to save for retirement using familiar target date funds and then transition to a personalized retirement income strategy, supported by multiple insurers selected by J.P. Morgan Asset Management, which are expected to include Equitable and Prudential. The new lifetime income feature will allow electing participants to draw down their stable value balance over an expected time horizon correlated with average life expectancies and then, upon meeting certain requirements, the participants will begin to receive annuity income directly from the supporting insurers.
"More and more plan sponsors are taking action to help employees protect their life's work and ensure a secure retirement," said Ann Nanda, Head of Future Growth Initiatives and Distribution Enablement at Prudential Retirement Strategies. "In-plan decumulation solutions like J.P. Morgan's SmartRetirement Lifetime Income offer an innovative way to seize this opportunity for many Americans, so they can live a better life, longer."
"Equitable believes access to secure lifetime income options through defined contribution plans is critical to helping close the
SmartRetirement Lifetime Income's design is based on a deep understanding of how participants save and spend, and how much income they will need in retirement using data inputs such as J.P. Morgan's proprietary participant savings data and Chase's spending data across 66 million
In the savings phase, participants simply select a target date vintage that aligns with their expected year of retirement. At retirement, participants will have the option to create a personalized retirement income plan allocating across a set of spending funds – the Lifetime Retirement Income Fund and the Flexible Retirement Income Fund.
SmartRetirement Lifetime Income was designed by the same team that oversees the firm's SmartRetirement Target Date Funds, including experienced portfolio managers in the target date and retirement income fields, Daniel Oldroyd and Daniel Yem, who have a combined 45 years of industry experience.
To learn more about SmartRetirement Lifetime Income strategy, please visit its dedicated website.
About the lifetime income feature and spending funds
The optional lifetime income feature is a guaranteed withdrawal strategy designed to allow participants to spend down their investment in the Lifetime Retirement Income Fund over a period of time that is linked to average life expectancies. Upon depleting their investment in the Lifetime Retirement Income Fund participants will begin receiving annuity income directly from the supporting insurers for the rest of their life contingent upon various factors including the claims paying ability of the insurer and the participant making only the contractual withdrawals. J.P. Morgan will not guarantee the obligation of the supporting insurers to make the annuity payments directly to the participant. J.P. Morgan Asset Management expects to make the Lifetime Retirement Income Fund, or a fund similarly structured, available for use as an asset class within custom target date fund structures.
The Lifetime Retirement Income Fund is a fund designed to offer principal protection and potential daily growth, through a stable value investment structure, and access to the optional lifetime income feature offered by the supporting insurers. A stable value structure is generally a more conservative investment approach; however, there is no assurance that the Lifetime Retirement Income Fund will achieve its investment objectives.
The Flexible Retirement Income Fund offers a balanced portfolio of stocks and bonds designed to offer growth potential and a flexible withdrawal strategy through retirement.
About J.P. Morgan Asset Management
J.P. Morgan Asset Management, with assets under management of
JPMorgan Chase & Co. (NYSE: JPM) is a leading financial services firm based in
About Prudential
Prudential Financial, Inc. (NYSE: PRU), a global financial services leader and premier active global investment manager with approximately
About Equitable
Equitable, a principal franchise of Equitable Holdings, Inc. (NYSE: EQH), has been one of America's leading financial services providers since 1859. With the mission to help clients secure their financial well-being, Equitable provides advice, protection and retirement strategies to individuals, families and small businesses. Equitable has more than 8,000 employees and Equitable Advisors financial professionals and serves 3 million clients across the country. Please visit equitable.com for more information.
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SOURCE J.P. Morgan Asset Management
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