Core Insights - J.P. Morgan Asset Management's "Retirement by the Numbers" report emphasizes the need for improved plan design and participant support to enhance retirement security [1][2] Group 1: Participant Behavior and Financial Health - 48% of plan participants carry credit card debt, which increases the likelihood of taking loans from retirement plans and is associated with lower contribution rates and smaller account balances, reducing retirement readiness by up to 40% for older participants [1] - The average retiree spending declines by more than 30% between ages 60 and 85, with 60% of new retirees experiencing annual spending changes of 20% or more [2] Group 2: Plan Design and Contribution Strategies - Increasing contributions by just one percent starting at age 25 can help fund nine years of average Medicare-related expenses [2] - Nearly 70% of defined contribution participants are invested in target date funds, highlighting the importance of investment design and the glide path in achieving retirement success [3] Group 3: Importance of Personalized Solutions - The findings indicate that average income replacement needs vary widely based on pre-retirement salaries and Social Security benefits, underscoring the need for flexible, personalized retirement solutions [3] - Thoughtful plan features are essential to support long-term outcomes, as investment design alone cannot compensate for low savings rates [4]

Group 1 - The importance of contributing to a 401(k) for a financially stable retirement is emphasized, highlighting that many individuals rely solely on Social Security, which may not be sufficient [1] - Avoiding common mistakes in 401(k) plans is crucial for maximizing retirement savings, particularly in 2026 [2] Group 2 - Not claiming the full workplace match is a significant mistake; for example, if an employer offers $3,000 in matching dollars and an employee only contributes $2,000, they forfeit $1,000, which could grow substantially over time [3][4] - An investment of $1,000 today at an 8% annual return could potentially grow to nearly $22,000 in 40 years, underscoring the long-term benefits of maximizing employer contributions [5] Group 3 - Ignoring investment fees in 401(k) plans can lead to reduced returns; high fees associated with certain funds, such as target date funds, can significantly impact overall investment performance [6][8]