Retirement

Making the transition to retirement

A quality retirement takes smart planning


Use this short primer to organize your transition to the next stage of your life.

Spending trends as retirement begins

How much you spend obviously has the largest impact on how much money you save. Contrary to most people’s expectations, however, spending in the initial months of retirement tends to increase rather than decrease. You now have your entire day free, and most things you’ll want to do—movies, shopping, eating out—cost money. Once you get used to your new routine, your spending will likely settle down, so don’t panic if initially you spend more than you planned.

Timing your Social Security benefits

When to take Social Security is a question that gets a lot of attention. Some of the most important factors to think about are:

  • Your benefits are reduced if you begin taking them prior to your full retirement age (for most people retiring within the next few years, that would be age 66); the earlier you take your benefits (starting at age 62, the earliest permissible time to take them), the higher the reduction.
  • If your benefits are reduced, the reduction is permanent and will affect your benefits for the rest of your life.
  • If you delay taking your benefits, you receive an 8% annual credit—in effect, the government will pay you 8% more than your benefit at full retirement age, for every year you delay (through age 70).
  • In other words, if you delay taking benefits until age 67, your benefit would be 108% of your basic benefit; if you delay until age 68, 116%; until 69, 124%; and until 70, 132%.

Other benefits, such as Medicare, are triggered by filing for Social Security benefits, so understanding your options and the consequences of your decisions involving Social Security is crucial.

Assessing Medicare expenses and long-term care

If you aren’t covered by private insurance—either through your former employer or through an affinity group such as AARP, a trade association, etc.—you should understand what Medicare covers and how Part D (drug coverage) works—especially how Part D interacts with Social Security. Also, if you don’t already have coverage, look into long-term care insurance, but pay close attention to the terms of any policy you consider, notably cost, coverage and exclusions.

Investments

The months leading up to retirement are a good time to review your strategic asset allocation, especially if you expect to live off your portfolio’s growth and earnings. If you are close to taking required minimum distributions from your retirement assets, consider whether you should implement a different allocation for your tax-deferred assets and your taxable accounts.

J.P. Morgan has extensive resources to help you deal with your financial and non-financial matters. Your J.P. Morgan Securities Financial Advisor can help you think through the ramifications of many important decisions, and create with you a wealth management plan tailored to your needs.

IMPORTANT INFORMATION

This material is intended for educational and information purposes only. This material is intended to help you understand the financial consequences of the concepts and strategies discussed here in very general terms. The strategies discussed often involve complex tax and legal issues, which require discussion with a qualified tax and legal advisor. JPMorgan Chase & Co., its affiliates and employees do not provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any financial transactions.

Non-reliance

We believe the third party information contained in this material to be reliable and have sought to take reasonable care in its preparation; however, we do not represent or warrant its accuracy, reliability or completeness, or accept any liability for any loss or damage (whether direct or indirect) arising out of the use of all or any part of this material. We do not make any representation or warranty with regard to any computations, graphs, tables, diagrams or commentary in this material, which is provided for illustration/reference purposes only. Views, opinions, estimates and strategies expressed herein may differ from those expressed by other areas of J.P. Morgan or views expressed for other purposes or in other contexts, and this material should not be regarded as a research report. Any projected results and risks are based solely on hypothetical examples cited, and actual results and risks will vary depending on specific circumstances. Forward looking statements should not be considered as guarantees or predictions of future events. All examples, case studies and scenarios are shown for illustrative purposes only, are not a guarantee of future results and should not be relied upon as advice or interpreted as a recommendation.

Risks, Considerations and Additional Information
There may be different or additional factors which are not reflected in this material, but which may impact on a client’s portfolio or strategy. The information contained in this should not be relied upon in isolation for the purpose of making a decision. Nothing in this document shall be construed as giving rise to any duty of care owed to, or advisory relationship with, you or any third party. Nothing in this document is intended to constitute a representation that any investment strategy or product is suitable for you. You should consider carefully whether any products and strategies discussed are suitable for your needs, and to obtain additional information prior to making an investment decision. Nothing in this document shall be regarded as an offer, solicitation, recommendation or advice (whether financial, accounting, legal, tax or other) given by J.P. Morgan and/or its officers or employees, irrespective of whether or not such communication was given at your request.

“J.P. Morgan Securities” is a brand name for a wealth management business conducted by JPMorgan Chase & Co. and certain subsidiaries. J.P. Morgan Securities offers investment products and services through J.P. Morgan Securities LLC, member FINRA and SIPC. Bank products and services are offered by JPMorgan Chase Bank, N.A. and its bank affiliates.

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This website is for informational purposes only, and not an offer, recommendation or solicitation of any product, strategy service or transaction. Any views, strategies or products discussed on this site may not be appropriate or suitable for all individuals and are subject to risks. Prior to making any investment or financial decisions, an investor should seek individualized advice from a personal financial, legal, tax and other professional advisors that take into account all of the particular facts and circumstances of an investor's own situation. 

This website provides information about the brokerage and investment advisory services provided by J.P. Morgan Securities LLC (“JPMS”). When JPMS acts as a broker-dealer, a client's relationship with us and our duties to the client will be different in some important ways than a client's relationship with us and our duties to the client when we are acting as an investment advisor. A client should carefully read the agreements and disclosures received (including our Form ADV disclosure brochure, if and when applicable) in connection with our provision of services for important information about the capacity in which we will be acting.

INVESTMENT AND INSURANCE PRODUCTS ARE: • NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY, JPMORGAN CHASE BANK, N.A. OR ANY OF ITS AFFILIATES • SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED
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“J.P. Morgan Securities” is a brand name for a wealth management business conducted by JPMorgan Chase & Co (“JPMC”) and its subsidiaries worldwide. JPMorgan Chase Bank, N.A. and its affiliates (collectively “JPMCB”) offer investment products, which may include bank managed accounts and custody, as part of its trust and fiduciary services. Other investment products and services, such as brokerage and advisory accounts, are offered through J.P. Morgan Securities LLC (JPMS), a member of FINRA and SIPC. Annuities are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. JPMCB, JPMS and CIA are affiliated companies under the common control of JPMorgan Chase & Co. Products not available in all states.

Please read additional Important Information in conjunction with these pages.

 

 

 

Check the background of Our Firm and Investment Professionals on FINRA's BrokerCheck

 

This website is for informational purposes only, and not an offer, recommendation or solicitation of any product, strategy service or transaction. Any views, strategies or products discussed on this site may not be appropriate or suitable for all individuals and are subject to risks. Prior to making any investment or financial decisions, an investor should seek individualized advice from a personal financial, legal, tax and other professional advisors that take into account all of the particular facts and circumstances of an investor's own situation. 

This website provides information about the brokerage and investment advisory services provided by J.P. Morgan Securities LLC (“JPMS”). When JPMS acts as a broker-dealer, a client's relationship with us and our duties to the client will be different in some important ways than a client's relationship with us and our duties to the client when we are acting as an investment advisor. A client should carefully read the agreements and disclosures received (including our Form ADV disclosure brochure, if and when applicable) in connection with our provision of services for important information about the capacity in which we will be acting.

INVESTMENT AND INSURANCE PRODUCTS ARE: • NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY, JPMORGAN CHASE BANK, N.A. OR ANY OF ITS AFFILIATES • SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED
Equal Housing Opportunity logo

J.P. Morgan Chase Bank N.A., Member FDIC Not a commitment to lend. All extensions of credit are subject to credit approval 

“J.P. Morgan Securities” is a brand name for a wealth management business conducted by JPMorgan Chase & Co (“JPMC”) and its subsidiaries worldwide. JPMorgan Chase Bank, N.A. and its affiliates (collectively “JPMCB”) offer investment products, which may include bank managed accounts and custody, as part of its trust and fiduciary services. Other investment products and services, such as brokerage and advisory accounts, are offered through J.P. Morgan Securities LLC (JPMS), a member of FINRA and SIPC. Annuities are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. JPMCB, JPMS and CIA are affiliated companies under the common control of JPMorgan Chase & Co. Products not available in all states.

Please read additional Important Information in conjunction with these pages.