J.P. Morgan Asset Management Survey Unveils Growing Demand for Improved Retirement Income Support Among Plan Participants

Core Insights - The 2024 Defined Contribution Plan Participant Survey by J.P. Morgan Asset Management indicates a significant concern among participants regarding securing lifetime retirement income, with nearly 80% expressing worry about this issue [1][2]. Group 1: Retirement Income Support - A strong demand for guaranteed income options is noted, which can motivate increased savings among participants [2]. - 77% of participants are concerned about creating a steady retirement income stream, yet less than half have calculated their savings needs [6]. - 90% of participants show interest in in-plan solutions that provide guaranteed income in retirement [6]. Group 2: Financial Wellness and Savings - 90% of participants find financial wellness programs valuable, with 39% lacking basic emergency savings, an increase from 27% in 2021 [3]. - Key SECURE 2.0 provisions, such as employer-sponsored emergency savings and student loan matching, are appealing to 69% and 66% of participants, respectively [3]. Group 3: Professional Guidance - 75% of participants desire professional advice on investment decisions, but only 50% currently receive such guidance [4]. - 60% of participants wish for a simplified process to hand over retirement planning and investing to a professional [4]. Group 4: Plan Design Preferences - 63% of participants acknowledge they are not saving enough for a financially secure retirement [5]. - There is high favorability towards automatic enrollment and contribution escalation, with nearly 90% supporting these features [5]. - 89% of participants find target date funds appealing, indicating a strong interest in these investment options [5]. Group 5: Survey Methodology - The survey was conducted in January 2024 with 1,503 DC plan participants, ensuring a representative sample through weighting by age, gender, and household income [8].