-Solution offers an innovative lifetime income
strategy providing transparency and flexibility to retirement
savers-
NEW
YORK, Aug. 15, 2024 /PRNewswire/ -- J.P. Morgan
Asset Management today announced a new retirement income solution,
SmartRetirement Lifetime Income, a target date offering that helps
participants navigate the challenges associated with generating
retirement income. The strategy seeks to reduce portfolio
volatility as participants near retirement and provide access to a
stream of lifetime income payments offered by unaffiliated
participating insurance companies by building upon a stable value
structure.
"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
U.S. retirement income gap," said Aaron
Sarfatti, Chief Strategy Officer and Head of Institutional
Businesses and New Ventures at Equitable. "We look forward to
supporting J.P. Morgan in its SmartRetirement Lifetime Income
offering and helping its clients build a secure financial
future."
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 U.S.
households. SmartRetirement Lifetime Income provides support
from the savings phase through to retirement spending.
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
$3.3 trillion, as of June 30, 2024, 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. For
more information: www.jpmorganassetmanagement.com. J.P. Morgan
Asset Management is the marketing name for the asset management
businesses of JPMorgan Chase & Co. and its affiliates
worldwide.
JPMorgan Chase & Co. (NYSE: JPM) is a leading financial
services firm based in the United States
of America, with operations worldwide. JPMorgan Chase had
$4.1 trillion in assets and
$341 billion in stockholders' equity
as of June 30, 2024. The Firm is a
leader in investment banking, financial services for consumers and
small businesses, commercial banking, financial transaction
processing and asset management. Under the J.P. Morgan and Chase
brands, the Firm serves millions of customers in the United States, and many of the world's
most prominent corporate, institutional and government clients
globally. Information about JPMorgan Chase & Co. is available
at www.jpmorganchase.com.
About Prudential
Prudential Financial, Inc. (NYSE:
PRU), a global financial services leader and premier active global
investment manager with approximately $1.5
trillion in assets under management as of June 30, 2024, has operations in the United States, Asia, Europe,
and Latin America. The Retirement
Strategies team at Prudential delivers industry-leading solutions
for growth and protection to more than 2 million individual and
institutional customers. Prudential's iconic Rock symbol has stood
for strength, stability, expertise, and innovation for nearly 150
years. For more information, please
visit news.prudential.com.
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.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/jp-morgan-asset-management-announces-smartretirement-lifetime-income-302223775.html
SOURCE J.P. Morgan Asset Management
