J.P. Morgan Asset Management Research Reveals Nearly Half of Plan Participants Carry Credit Card Debt, Reducing Retirement Readiness

Rhea-AI Summary

J.P. Morgan Asset Management (NYSE:JPM) released its "Retirement by the Numbers" report on Dec 16, 2025, using data from 16,000 defined contribution plans, > 12 million participants and spending patterns from > 5 million de-identified Chase households.

Key findings: 48% of plan participants carry credit card debt, which raises the likelihood of taking plan loans and is linked to lower contribution rates and smaller account balances. For older participants, credit card balances can reduce retirement readiness by up to 40%. Retiree spending falls by > 30% between ages 60 and 85, and 60% of new retirees see annual spending swings of ≥ 20%. A 1% contribution increase starting at age 25 can fund roughly 9 years of average Medicare-related expenses. Approximately ~70% of defined contribution participants hold target date funds.

Positive

• Large sample: 16,000 plans and >12 million participants
• Target date reach: ~70% of participants invested in target date funds
• Small change, big effect: 1% higher contributions at age 25 funds ~9 years of Medicare costs

Negative

• High debt prevalence: 48% of participants carry credit card debt
• Lower savings: High credit card balances linked to lower contribution rates and smaller balances
• Readiness hit: Retirement readiness reduced by up to 40% for older participants
• Spending volatility: 60% of new retirees experience annual spending swings ≥20%

News Market Reaction

-1.40%

1 alert

-1.40% News Effect

On the day this news was published, JPM declined 1.40%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Participants with credit card debt: 48% Retirement readiness impact: 40% Defined contribution plans: 16,000 +5 more

8 metrics

Participants with credit card debt 48% Plan participants in anonymized Chase household data

Retirement readiness impact 40% Reduction in retirement readiness for older participants with high card balances

Defined contribution plans 16,000 Number of plans in the research dataset

Plan participants More than 12 million Participants from EBRI databases

Chase households Over 5 million Select de-identified Chase households in spending dataset

Retiree spending decline More than 30% Average spending drop between ages 60 and 85

New retiree spending volatility 60% with ≥20% changes Share of new retirees with ≥20% annual spending swings

Participants in target date funds Nearly 70% Defined contribution participants invested in target date funds

Market Reality Check

Price: $322.40 Vol: Volume 10,480,321 vs 20-d...

normal vol

$322.40 Last Close

Volume Volume 10,480,321 vs 20-day average of 9,334,581, indicating somewhat elevated trading activity. normal

Technical Shares at 320.02, trading above the 200-day MA of 281.04 and within $3 of the 52-week high 322.88.

Peers on Argus

JPM is modestly higher (0.47%) while peers show mixed moves: BAC -0.14%, WFC -0....

JPM is modestly higher (0.47%) while peers show mixed moves: BAC -0.14%, WFC -0.73%, HSBC -0.44%, RY 0.83%, C 0.31%. This points to stock-specific trading rather than a broad sector move.

Historical Context

5 past events · Latest: Dec 11 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 11	Blockchain issuance	Positive	+2.3%	On-chain U.S. commercial paper issuance on Solana for Galaxy Digital.
Dec 11	ETF launch	Positive	+2.3%	Launch of JPMorgan 100% U.S. Treasury Securities Money Market ETF.
Dec 09	Dividend announcement	Positive	+3.2%	Quarterly common stock dividend with large asset and equity base disclosed.
Dec 09	Alternatives outlook	Positive	-4.7%	2026 Global Alternatives Outlook highlighting private markets opportunities.
Dec 08	Strategic initiative	Positive	+0.1%	Creation of $10B Strategic Investment Group within Security and Resiliency Initiative.

Pattern Detected

Recent JPM news has often coincided with positive 24h price reactions, though one strategic outlook article saw a notable negative move.

Recent Company History

Over the past week, JPM has issued several strategic and product-focused announcements. A Dec 8 leadership and Security and Resiliency Initiative update, a Dec 9 dividend declaration with $4.6 trillion in assets and $360 billion equity, and a Dec 11 blockchain-based commercial paper deal and new money market ETF launch all framed JPM as active in innovation and capital markets. The current retirement research release continues this pattern of data-driven thought leadership rather than balance-sheet-changing events.

Market Pulse Summary

This announcement highlights J.P. Morgan Asset Management’s use of large datasets—covering 16,000 pl...

Analysis

This announcement highlights J.P. Morgan Asset Management’s use of large datasets—covering 16,000 plans and over 12 million participants—to analyze retirement readiness, debt burdens, and spending patterns. It reinforces the firm’s role in retirement thought leadership, complementing recent strategic and product launches. Investors may track how such research supports growth in solutions like target date funds and informs future plan design initiatives across JPM’s sizable asset management franchise.

Key Terms

defined contribution plans, target date funds, glide path, long-term capital market assumptions, +2 more

6 terms

defined contribution plans financial

"This year's research draws on data from 16,000 defined contribution plans..."

Defined contribution plans are employer-sponsored retirement accounts where fixed contributions are made into an individual account for each worker, and the eventual payout depends on how those contributions are invested and grow over time. Think of it like a personal piggy bank that an employer tops up: the worker bears the investment risk and decides how the money is invested, while the employer’s cost is generally the predictable contributions rather than an open-ended pension promise. For investors, these plans matter because they change a company’s long-term liabilities, cash flow predictability and employee financial security, which can influence workforce stability and consumer behavior.

target date funds financial

"Nearly 70% of defined contribution participants are invested in target date funds..."

A target date fund is an investment fund that automatically shifts its mix of stocks, bonds and cash to become more conservative as it nears a specified year, often the year an investor plans to retire. It matters to investors because it offers a single, hands-off way to align risk with a time-based goal—like a thermostat that gradually lowers risk as the target date approaches—reducing the need for active portfolio management.

glide path financial

"success is guided by the design and discipline of the glide path guiding those investments."

A glide path is a planned schedule that gradually shifts an investment portfolio’s mix from higher-risk assets (like stocks) toward lower-risk assets (like bonds or cash) as a target date or goal approaches. Think of it like an airplane’s controlled descent: it smooths the transition so you reduce the chance of big losses near an important milestone, helping investors balance growth early with preservation later.

long-term capital market assumptions financial

"by integrating participant behaviors with forward-looking Long-Term Capital Market Assumptions..."

A set of forward-looking estimates for how different types of investments (stocks, bonds, cash, real estate, etc.) are expected to perform over many years, including likely returns, volatility and how they move together. Investors and managers use these assumptions like a long-range weather and budget forecast: they guide strategic asset allocation, set performance and funding targets, and help decide how much risk to take so portfolios can meet long-term goals.

medicare medical

"can help fund nine years of average Medicare-related expenses."

Medicare is a large government-run health insurance program that primarily covers people aged 65 and older and certain younger people with disabilities. For investors it matters because Medicare acts like a huge customer and rule-maker for hospitals, drugmakers and medical-device companies—its coverage decisions, payment rates and regulatory policies can change demand, revenue and profit margins across the healthcare sector, similar to how a major client or regulator can shape a business’s prospects.

401(k) financial

"68% of 401(k) participants in its database held TDFs at year-end 2022..."

A 401(k) is a type of retirement savings plan offered by employers that allows workers to set aside a portion of their paycheck before taxes are taken out. The money saved in a 401(k) can grow over time through investments, helping individuals build funds for their future retirement. It matters to investors because it provides a tax-advantaged way to save and invest for long-term financial security.

AI-generated analysis. Not financial advice.

Comprehensive study highlights the need for improved plan design and participant support to help with retirement security

NEW YORK, Dec. 16, 2025 /PRNewswire/ -- J.P. Morgan Asset Management today released its "Retirement by the Numbers" report, revealing that anonymized Chase household data showed that 48% of plan participants carry credit card debt, which increases their likelihood of taking a loan from their retirement plan.¹ High credit card balances are also associated with lower contribution rates and smaller account balances, reducing retirement readiness by up to 40% for older participants. This year's research draws on data from 16,000 defined contribution plans and more than 12 million participants from Employee Benefit Research Institute participant databases, and spending patterns from over 5 million select de-identified Chase households.²

"Financial health matters, and the financial pressures outside of retirement plans directly affect savings behavior and long-term financial security," said Michael Conrath, Chief Retirement Strategist at J.P. Morgan Asset Management. "Our latest "Retirement by the Numbers" research provides actionable insights to help sponsors design plans that reflect how participants actually save and spend. Since defined contribution plans continue to serve as the primary retirement vehicle for many Americans, it's important for plan sponsors to align plan features with real-world participant behaviors to help drive stronger retirement outcomes."

The research also uncovered that the average retiree spending gradually declines by more than 30% between ages 60 and 85. Spending can fluctuate dramatically from year to year, with 60% of new retirees experiencing annual changes of 20% or more. The study further revealed that increasing contributions by just one percent starting at age 25 can help fund nine years of average Medicare-related expenses.

"When it comes to retirement plans, there is no one-size-fits-all approach. Average income replacement needs can vary widely depending on pre-retirement salaries and Social Security benefits received," said Sharon Carson, Retirement Strategist at J.P. Morgan Asset Management. "These findings highlight the importance of flexible, personalized retirement solutions and challenge conventional thinking around static income replacement rate assumptions."

Nearly 70% of defined contribution participants are invested in target date funds, underscoring how much retirement success is guided by the design and discipline of the glide path guiding those investments.³ The "Retirement by the Numbers" research reflects J.P. Morgan Asset Management's commitment to continually test and refine the SmartRetirement target date fund suite glide path to help as many participants as possible retire with confidence and sustainable income.

"Participant behaviors are critical in shaping retirement outcomes but they are only part of the equation," said Dan Oldroyd, SmartRetirement Portfolio Manager for J.P. Morgan Asset Management. "This year's findings reconfirm that investment design alone cannot make up for low savings rates, and thoughtful plan features are essential to supporting long-term outcomes. SmartRetirement continues to strive to deliver successful participant outcomes by integrating participant behaviors with forward-looking Long-Term Capital Market Assumptions, but the greatest impact comes when investment strategy is paired with disciplined saving."

"Retirement by the Numbers" helps plan sponsors and advisors create actionable strategies to help increase the odds that participants are able to achieve the replacement income needed to retire securely.  For more information and to access the full "Retirement by the Numbers" report, please visit its dedicated website.

¹ Select de-identified Chase credit card data, age 25-65 (2016-2024).
² Please note: While JPMAM intends to have access to the JPMorgan Chase & Co. businesses referenced above, certain internal policies, laws and regulations may limit the depth of or access to information from our affiliates.
³ According to the Investment Company Institute (ICI), 68% of 401(k) participants in its database held TDFs at year-end 2022 (ICI, April 2024, page 30). With approximately 70 million participants in 401(k) plans (ICI, 401(k) Resource), this equates to over 40 million people invested in TDFs.

About J.P. Morgan Asset Management
J.P. Morgan Asset Management, with assets under management of $4 trillion (as of 9/30/2025), 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, visit: www.jpmorgan.com/am.

About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading financial services firm based in the United States of America ("U.S."), with operations worldwide. JPMorgan Chase had $4.6 trillion in assets and $360 billion in stockholders' equity as of September 30, 2025. 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 U.S., 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.

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SOURCE J.P. Morgan Asset Management

FAQ

What did J.P. Morgan Asset Management report about credit card debt and plan participants (JPM) on Dec 16, 2025?

The report found 48% of plan participants carry credit card debt, which correlates with higher plan loan use and lower savings.

How many plans and participants were analyzed in the JPM "Retirement by the Numbers" report?

The research used data from 16,000 defined contribution plans and more than 12 million participants.

What impact did the JPM report say credit card balances have on retirement readiness for older participants?

High credit card balances were linked to reductions in retirement readiness of up to 40% for older participants.

How does retiree spending change with age according to the JPM report?

Average retiree spending declines by more than 30% between ages 60 and 85, with 60% of new retirees seeing year-to-year swings ≥ 20%.

What does JPM say about target date fund usage among defined contribution participants?

Approximately ~70% of defined contribution participants are invested in target date funds, highlighting plan design importance.

How much can saving more early improve outcomes according to the JPM report?

The study estimates that increasing contributions by 1% starting at age 25 can help fund about 9 years of average Medicare-related expenses.