Guide to Retirement

Retirement Insights

Guide to

Retirement

2024

3. The retirement equation

4. Life expectancy probabilities

5. Life expectancy probabilities for same

sex couples

6. Managing expectations of ability to work

7. Prepare to retire on your own terms

8. Fostering well-being in retirement

9. Social Security timing trade-offs

10. Claiming Social Security: decision tree

11. Maximizing Social Security benefits:

maximum earner

12. Social Security benefit claiming

considerations

13. Income replacement needs vary by

household income

14. Retirement savings checkpoints:

household income <$90k

15. Retirement savings checkpoints:

household income >$100k

16. Annual savings needed if starting today:

household income <$90k

17. Annual savings needed if starting today:

household income >$100k

18. Automatic features are on the rise, in

popularity and practice

19. Benefit of saving and investing early

20. The benefits of auto-escalation

21. Tax implications for retirement savings

by account type

22. Diversified sources of retirement

funding

23. Evaluate a Roth at different life stages

24. Maximizing an HSA for health care

expenses

25. Prioritizing long-term retirement

savings

26. Annual Emergency Reserves

27. Lack of emergency savings can impact

retirement readiness

28. The toxic effect of loans and

withdrawals

29. Reasons for 401(k) plan loans and

withdrawals

30. Spending and inflation

31. Changes in spending: partially and fully

retired households with $250k-$750k

investable wealth

32. Changes in spending: all household

with $1m-$3m investable wealth

33. The 4% rule: projected outcomes vs.

historical experience

34. Dollar cost ravaging: timing risk of

withdrawals

35. Mitigating dollar cost ravaging:

dynamic spending

36. 65 and working: should I sign up for

Medicare?

37. Three steps for Medicare coverage

38. Rising health care costs in retirement

39. Variation in Medicare Advantage costs

40. 2024 monthly Medicare surcharges

41. Disability increases with age

42. Long-term care planning

43. Long-term care planning options

44. Consider how to fund your retirement

goals in retirement

45. Structuring a portfolio to match investor

goals in retirement

46. Goals-based wealth management

47. Impact of being out of the market

48. SECURE 2.0 Act: broadening access to

more people and increasing savings

49. SECURE 2.0 Act: new tax implications

50. A closer look at tax rates: 2024

51. Retirement plan contribution and

deferral limits: 2023/2024

52. Disclosures

Page reference

GTR

Retirement Landscape

Savings

Spending

Investing

Reference

The retirement equation

Source: J.P. Morgan Asset Management

GTR

A sound retirement plan

Make the most of the things

that you can control but be

sure to evaluate factors that

are somewhat or completely

out of your control within

your comprehensive

retirement plan.

Retirement Landscape

Saving

vs.

spending

Employment

earnings

and duration

Longevity

Tax and

benefits

policy

Market

returns

Asset

allocation

and

location

RETIREMENT

TOTAL

CONTROL

OUT OF

YOUR

CONTROL

SOME

CONTROL

52%

30%

11%

39%

19%

71%

43%

15%

20%

72%

54%

31%

13%

63%

43%

22%

90%

73%

46%

19%

46%

23%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

85 90 95 100 85 90 95 100 85 90 95 100 85 90 95 100

Women Men At least one of a

couple

Both members of a

couple

If you’re age 65 today, the probability of living to a specific age or beyond

Life expectancy probabilities

GTR

Plan for longevity

Average life expectancy is a

mid-point not an end-point.

You may need to plan on the

probability of living much

longer – perhaps 35 years in

retirement – particularly if

you are a non-smoker in

excellent health.

Investing a portion of your

portfolio for growth is

important to maintain your

purchasing power over time.

Retirement Landscape

Source (chart): Social Security Administration, Period Life Table, 2020 (published in the 2023 OASDI Trustees Report); American Academy of

Actuaries and Society of Actuaries, Actuaries Longevity Illustrator, http://www.longevityillustrator.org/

(accessed January 2024), J.P.

Morgan Asset Management.

Age:

Non-smokers in excellent health

Total population average

77%

51%

20%

27%

63%

34%

10%

15%

92%

78%

52%

24%

53%

29%

86%

67%

38%

15%

40%

18%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

85 90 95 100 85 90 95 100 85 90 95 100 85 90 95 100

At least 1 F Both F 1 M Both M

If you’re age 65 today, the probability of living to a specific age or beyond

Life expectancy probabilities for same sex couples

Note: Sex assigned at birth; categories available in standard Social Security life expectancy tables.

Source (chart): Social Security Administration, Period Life Table, 2020 (published in the 2023 OASDI Trustees Report); American Academy of

Actuaries and Society of Actuaries, Actuaries Longevity Illustrator, http://www.longevityillustrator.org/

(accessed January 2024), J.P.

Morgan Asset Management.

GTR

Plan for longevity

Average life expectancy is a

mid-point not an end-point.

You may need to plan on the

probability of living much

longer – perhaps 35 years in

retirement – particularly if

you are a non-smoker in

excellent health.

Investing a portion of your

portfolio for growth is

important to maintain your

purchasing power over time.

Retirement Landscape

At least one of a

female couple

Both of a

female couple

At least one of a

male couple

Both of a

male couple

Age:

Non-smokers in excellent health

Total population average

Reasons for retiring earlier than planned

Managing expectations of ability to work

GTR

Expectations of workers vs. retirees

To retire at age 65 or older

Retirement Landscape

Source: Employee Benefit Research Institute, Greenwald Research: 2023 Retirement Confidence Survey. Individuals may have given more

than one answer. Latest available data as of December 31, 2023.

Median retirement age:

Expected: 65

Actual: 62

68%

31%

10%

20%

30%

40%

50%

60%

70%

Current workers'

expectations

Experience of

actual retirees

15%

16%

35%

10%

16%

31%

35%

0% 25% 50%

Early retirement

You may not have complete

control over when you retire,

so you should consider

having a back-up plan

including:

• Disability insurance

• Saving for financial

freedom and the ability to

weather changing

circumstances

Health problem or

disability

Changes at company/

downsizing

Care for spouse or

family member

Outdated skills

Another work-related

reason

Could afford to

Wanted to do

something else

Early retirement

package or incentive

22%

38%

52%

11%

17%

24%

27%

0% 20% 40% 60%

Want to do something else

Job opportunity

Enjoy working

Stay active and involved

Financially support others

Keep insurance or benefits

Decreased savings/investments

Make ends meet

Avoid reducing savings/"nest egg"

Buy extras

Prepare to retire on your own terms

Source (top chart): J.P. Morgan Asset Management, based on internal select data from JPMorgan Chase Bank, N.A. and its affiliates

(collectively “Chase”) including select Chase check, credit and debit card and electronic payment transactions from January 1, 2013 to

November 30, 2022. Information that would have allowed identification of specific customers was removed prior to the analysis. Households

age 60–69 with income for at least 12 consecutive months prior to retirement, 12 consecutive months after retirement and the month of

retirement. Additional information on J.P. Morgan Asset Management’s data privacy standards available at

https://am.jpmorgan.com/us/en/asset-management/mod/insights/retirement-insights/gtr-privdisc/.

Source (bottom chart): Employee Benefit Research Institute, Greenwald Research: 2021 Retirement Confidence Survey.

Latest available data as of December 31, 2023. Individuals may have given more than one answer.

GTR

Retirement Landscape

Needs

Wants

Fully retired

Partially retired

At least one member of a

household has work income

47%53%

For households that started retirement age 60-69:

Major reasons people work in retirement

What does retirement

mean to you?

Being well prepared for

retirement means work will

be optional.

Fostering well-being in retirement

Source: PNAS.org, Vol 116, No. 4, Leading a Meaningful Life at Older Ages, January 22, 2019, Volume 8, Article 517226; Journal of Gerontology,

2019, 65:634–639, Investing in Happiness: The Gerontological Perspective, by Andrew Steptoe; PRB.org. online resource library, Happily Ever

After? Research Offers Clues on What Shapes Happiness and Life Satisfaction after Age 65, website as of October 18, 2023.

GTR

The transition from…

Using time to “PUSH” is associated with well-being in retirement:

Know what you are

retiring to, not just what

you are retiring from

To make the most of your

retirement years, using time

to “PUSH” may improve your

outlook and life satisfaction.

Retirement Landscape

Socialize

with friends &

family; spend time

with others

Health

Foster healthy

behaviors

Purpose

Create a reason

to get up in the

morning

Usetime to

work, help others,

go to events and

activities

Structured time Free time

Social Security timing trade-offs

Understand the

trade-offs

Deciding when to claim

benefits will have a

permanent impact on the

benefit you receive. Claiming

before your full retirement

age can significantly reduce

your benefit, while delaying

increases it.

In 2017, full retirement age

began transitioning from 66

to 67 by adding two months

each year for six years. This

makes claiming early even

more of a benefit reduction.

For illustrative purposes only. The Social Security Amendments Act of 1983 increased FRA from 65 to 67 over a 40-year period. The first phase

of transition increased FRA from 65 to 66 for individuals turning 62 between 2000 and 2005. After an 11-year hiatus, the transition from 66 to

67 (2017-2022) is complete. This material should be regarded as educational information on Social Security and is not intended to provide

specific advice. If you have questions regarding your particular situation, you should contact the Social Security Administration and/or your

legal or tax professional.

Source: Social Security Administration, J.P. Morgan Asset Management.

GTR

Benefits differ by birth year and claim age

Full Retirement Age (FRA) = 100% benefit

Retirement Landscape

100%

benefit

124%

70%

Birth year: 1960 or later

Full Retirement Age: 67

Age 70

Age 62

-6.00% average per year

+8% per year

100%

benefit

132%75%

Birth year: 1954 or earlier

Full Retirement Age: 66

Age 70

Age 62

-6.25% average per year

+8% per year

Decreased benefits

Increased benefits

8.7%

Cost of living increase for

benefits received in 2023

Average cost of living

adjustment (1985-2023)

2.8%

66 + 10 months

66 + 8 months

66 + 6 months

66 + 4 months

Full Retirement Age: 66 + 2 months

1959 (65)

1958 (66)

1957 (67)

1956 (68)

Birth year: 1955 (current age: 69)

74.2% 130.7%

73.3% 129.3%

72.5% 128.0%

71.7%

70.8%

126.7%

125.3%

Claiming Social Security: decision tree

GTR

This material should be regarded as educational information on Social Security and is not intended to provide specific advice. If you have

questions regarding your particular situation, you should contact the Social Security Administration and/or your legal or tax professionals.

*Full Retirement Age (FRA) of 67 is for individuals born 1960 or later. This decision tree is also appropriate for other FRAs.

Source: Social Security Administration, J.P. Morgan Asset Management.

Consider claiming

your benefit

Evaluate which claiming age results in

the highest lifetime benefit based on

your expected rate of return and life

expectancy

GTR 12: Social Security benefit

claiming considerations

Delay claiming,

particularly if you

are subject to the

earnings test

You may want to take your benefit,

but understand what you may be

leaving on the table at older ages

GTR 11: Maximizing Social

Security benefits

Are you working?

Do you prefer receiving a

smaller benefit earlier vs.

waiting for a larger benefit?

Do you want to claim

your benefit to

preserve your

investment portfolio?

Do you have other sources of income?

Do you expect

to live beyond

age 77?

Do you expect to live

beyond age 81?

Consider taking

your benefit as

early as age 62

Consider taking

benefit at Full

Retirement Age*

Age

Consider waiting

to age 70 to take

your benefit

Age

Weigh the odds of living to various

ages and consider health status &

family history of longevity

GTR 4 and 5: Life expectancy

probabilities

Retirement Landscape

START HERE

Maximizing Social Security benefits: maximum earner

GTR

Cumulative individual maximum benefit by claim age

Full Retirement Age (FRA) = Age 67

Planning opportunity

Delaying benefits means

increased Social Security

income later in life, but your

portfolio may need to bridge

the gap and provide income

until delayed benefits are

received.

Retirement Landscape

Claim at 62:

$2,680 per month

Claim at FRA:

$3,829 per month

Age

$572k

$577k

$518k

$763k

$849k

$855k

$1,325k

$1,653k

$1,852k

FRA/70

62/FRA

Breakeven age

62 67 70

77 81 90

Claim at 70:

$4,748 per month

67%

77%

92%

53%

66%

84%

18%

29%

42%

100%

85%

91%

99%

91%

95%

99%

At age 62,

probability of

living to at

least age:

Couple assumes at least one lives to the specified age or beyond. Breakeven assumes the same individual, born in 1962, earns the

maximum wage base each year ($168,600 in 2024), retires at the end of age 61 and claims at 62 & 1 month, 67 and 70, respectively. Benefits

are assumed to increase each year based on the Social Security Administration 2023 OASDI Trustee’s Report intermediate estimates

(annual benefit increase of 2.4% in 2025 and thereafter). Monthly amounts with the cost-of-living adjustments (not shown on the chart) are:

$4,311 at FRA and $5,739 at age 70. Exact breakeven ages are 76 years & 10 months and 80 years & 8 months.

Source: Social Security Administration, J.P. Morgan Asset Management.

Social Security benefit claiming considerations

Assumes the same individual, born in 1962, retires at the end of age 61 and claims at 62 & 1 month, 67 and 70, respectively. Benefits are

assumed to increase each year based on the Social Security Administration 2023 OASDI Trustee’s Report intermediate estimates (annual

benefit increase of 2.4% in 2025 and thereafter). Analysis is based on a maximum earner (all earnings profiles yield similar results).

Expected rate of return is deterministic, in nominal terms, and net of fees.

Source (chart): Social Security Administration, J.P. Morgan Asset Management.

Source (longevity): Social Security Administration 2023 OASDI Trustees Report.

GTR

Comparison of claim age based on an individual’s expected rate of return and longevity

Color represents the claim age with the highest expected lifetime benefits

Retirement Landscape

81 90

Expected annual rate of return

Net of Fees

100706762

10%

Expected longevity

How to use:

• Go to the intersection of your expected rate of return and your expected longevity.

• The color at this intersection represents the Social Security claim age that maximizes total wealth (cumulative

Social Security benefit and investment portfolio) given three claiming options: age 62, Full Retirement Age (age

67) and age 70.

• Example: For a woman with an expected consistent 5.5% rate of return (net of fees) and life expectancy of 88:

consider claiming at age 70.

Consider portfolio

returns and your life

expectancy

The lower your expected

long-term investment return

and the longer your life

expectancy, the more it pays

to wait to take your benefit.

Claim at age 62

Claim at age 70

Claim at age 62

Claim at age 70

Income replacement needs vary by household income

Source: Expenditure Survey (BLS) data (2016-2019) for income and longitudinal Chase data (2013-2020) for spending, inflation adjusted. Chase data includes

internal select data from JPMorgan Chase Bank, N.A. and its affiliates (collectively “Chase”) including select Chase check, cash, credit and debit card, and

electronic payment transactions from January 1, 2013 to December 31, 2020. Additional information on J.P. Morgan Asset Management’s data privacy standards

available at

https://am.jpmorgan.com/us/en/asset-management/mod/insights/retirement-insights/gtr-privdisc/. Social Security benefits uses modified scaled

earnings in 2021 for a single wage earner at age 65 and a spousal benefit at age 63. The income replacement needs may be lower for households in which both

spouses are working and the second spouse’s individual benefits are greater than their spousal benefit. Single household income replacement needs may vary as

spending is typically less than a two-spouse household; however, the loss of the Social Security spousal benefit may offset the spending reduction. Percentages

and values may not sum due to rounding. J.P. Morgan Asset Management analysis, 2021.

GTR

Replacement rate detail by household income

Saving

25%

30%

33%

35%

37%

39%

41%

42%

46%

47%

50%

51%

53%

56%

73%

66%

61%

58%

55%

50%

47%

44%

37%

33%

28%

25%

20%

16%

11%

12%

14%

17%

20%

22%

24%

27%

28%

98%

96%

94%

93%

92%

89%

88%

86%

83%

80%

78%

76%

73%

72%

20%

40%

60%

80%

100%

120%

$30k $40k $50k $60k $70k $80k $90k $100k $125k $150k $175k $200k $250k $300k

Pre-retirement income

Income replacement rate

Changes in

expenditures, taxes

and pre-retirement

savings

Social Security benefit

Amount required from

private and employer

sources

Retirement savings checkpoints

GTR

Saving

Current

age

$30k $40k $50k $60k $70k $80k $90k

25 5k 10k 25k 35k 55k

30 5 20 30 55 70 90

35 20 40 55 85 110 140

40 10 35 60 85 125 155 200

45 20 55 90 125 175 215 270

50 30 80 120 165 230 280 345

55 45 105 155 210 290 355 430

60 60 130 195 260 355 430 525

65 70 150 220 290 395 475 580

Current household income

Household income ≤$90k

Annual savings rate: 5%

Model assumptions

Annual gross savings rate:

Pre-retirement portfolio:

60/40 diversified portfolio

Post-retirement portfolio:

40/60 diversified portfolio

Inflation rate: 2.5%

Retirement age:

• Primary earner: 65

• Spouse: 63

Years in retirement: 35

This analysis assumes you would like to maintain an equivalent lifestyle in retirement.

Household income is assumed to be gross income (before taxes and savings).

How to use:

• Go to the intersection of your age and your closest current household income.

• This is the amount you should have saved today.

• Example: For a 40-year-old with a household income of $50,000, your current savings should be $60,000.

To personalize your plan, use an online calculator or discuss your circumstances with a financial professional.

Source: This chart is for illustrative purposes only and must not be relied upon to make investment decisions. J.P. Morgan Asset

Management’s (JPMAM) model is based on proprietary Long-Term Capital Market Assumptions returns, and an 80% confidence level.

Portfolios are described as equity/bond percentages (e.g., a 40/60 portfolio is 40% equities and 60% bonds). Assumptions include

household income replacement rates shown on slide 13. Consult with a financial professional for a more personalized assessment.

Allocations, assumptions and expected returns are not meant to represent JPMAM performance. Given the complex risk/reward trade-offs

involved, we advise clients to rely on judgment as well as quantitative optimization approaches in setting strategic allocations. References

to future returns for either asset allocation strategies or asset classes are not promises or even estimates of actual returns a client portfolio

may achieve. J.P. Morgan Asset Management.

See “Annual savings

needed”

on slide 16*

for guidance

* These households may need to save less than 5%.

Current

age

$100k $125k $150k $175k $200k $250k $300k

25 See note* 5k 25k 55k 80k 140k 210k

30 35 80 120 170 220 325 445

35 100 175 240 320 400 555 735

40 185 290 385 500 610 835 1,080

45 285 425 555 710 860 1,160 1,495

50 395 580 750 950 1,140 1,530 1,955

55 525 755 970 1,215 1,450 1,935 2,460

60 660 940 1,205 1,500 1,790 2,380 3,015

65 755 1,065 1,355 1,685 2,010 2,660 3,365

Retirement savings checkpoints

GTR

Model assumptions

Annual gross savings rate:

10%

Pre-retirement portfolio:

60/40 diversified portfolio

Post-retirement portfolio:

40/60 diversified portfolio

Inflation rate: 2.5%

Retirement age:

• Primary earner: 65

• Spouse: 63

Years in retirement: 35

Saving

Current household income

Household income ≥$100k

Annual savings rate: 10%

This analysis assumes you would like to maintain an equivalent lifestyle in retirement.

Household income is assumed to be gross income (before taxes and savings).

How to use:

• Go to the intersection of your age and your closest current household income.

• This is the amount you should have saved today.

• Example: For a 40-year-old with a household income of $100,000, your current savings should be $185,000.

To personalize your plan, use an online calculator or discuss your circumstances with a financial professional.

* These households may need to save less than 10%.

Source: This chart is for illustrative purposes only and must not be relied upon to make investment decisions. J.P. Morgan Asset

Management’s (JPMAM) model is based on proprietary Long-Term Capital Market Assumptions returns, and an 80% confidence level.

Portfolios are described as equity/bond percentages (e.g., a 40/60 portfolio is 40% equities and 60% bonds). Assumptions include

household income replacement rates shown on slide 13. Consult with a financial professional for a more personalized assessment.

Allocations, assumptions and expected returns are not meant to represent JPMAM performance. Given the complex risk/reward trade-offs

involved, we advise clients to rely on judgment as well as quantitative optimization approaches in setting strategic allocations. References

to future returns for either asset allocation strategies or asset classes are not promises or even estimates of actual returns a client portfolio

may achieve. J.P. Morgan Asset Management.

Annual savings needed if starting today

GTR

Model assumptions

Pre-retirement portfolio:

60/40 diversified portfolio

Post-retirement portfolio:

40/60 diversified portfolio

Inflation rate: 2.5%

Retirement age:

• Primary earner: 65

• Spouse: 63

Years in retirement: 35

Values assume you would like to maintain an equivalent lifestyle in retirement.

Household income is assumed to be gross income (before taxes and savings).

How to use:

• Go to the intersection of your current age and your closest current household income.

• This is the percentage of your current household income to contribute annually going forward if

you have $0 saved for retirement today.

• Example: A 40-year-old with household income of $50,000 and $0 saved for retirement today may

need to save 12% every year until retirement.

Saving

$30k $40k $50k $60k $70k $80k $90k

Current

age

Savings rate (x current household income)

25 3% 4% 5% 6% 7% 7% 8%

30 4% 6% 7% 7% 9% 9% 10%

35 5% 7% 9% 10% 11% 12% 13%

40 6% 10% 12% 13% 15% 16% 17%

45 9% 14% 16% 18% 21% 22% 24%

50 13% 21% 24% 27% 31% 33% 36%

Current household income

Household income ≤$90k

Source: This chart is for illustrative purposes only and must not be relied upon to make investment decisions. J.P. Morgan Asset

Management’s (JPMAM) model is based on proprietary Long-Term Capital Market Assumptions returns, and an 80% confidence level.

Portfolios are described as equity/bond percentages (e.g., a 40/60 portfolio is 40% equities and 60% bonds). Assumptions include

household income replacement rates shown on slide 13. Consult with a financial professional for a more personalized assessment.

Allocations, assumptions and expected returns are not meant to represent JPMAM performance. Given the complex risk/reward trade-offs

involved, we advise clients to rely on judgment as well as quantitative optimization approaches in setting strategic allocations. References

to future returns for either asset allocation strategies or asset classes are not promises or even estimates of actual returns a client portfolio

may achieve. J.P. Morgan Asset Management.

Annual savings needed if starting today

GTR

Model assumptions

Pre-retirement portfolio:

60/40 diversified portfolio

Post-retirement portfolio:

40/60 diversified portfolio

Inflation rate: 2.5%

Retirement age:

• Primary earner: 65

• Spouse: 63

Years in retirement: 35

Saving

$100k $125k $150k $175k $200k $250k $300k

Current

age

Savings rate (x current household income)

25 9% 10% 11% 11% 12% 13% 13%

30 12% 13% 14% 15% 15% 16% 17%

35 15% 17% 18% 19% 20% 22% 23%

40 20% 23% 25% 26% 27% 29% 31%

45 29% 32% 34% 37% 38% 40% 43%

50 42% 48% 51% 54% 56% 60% 63%

Current household income

Household income ≥$100k

Values assume you would like to maintain an equivalent lifestyle in retirement. Household income is

assumed to be gross income (before taxes and savings).

How to use:

• Go to the intersection of your current age and your closest current household income.

• This is the percentage of your current household income to contribute annually going forward if

you have $0 saved for retirement today.

• Example: A 40-year-old with household income of $100,000 and $0 saved for retirement today may

need to save 20% every year until retirement.

Source: This chart is for illustrative purposes only and must not be relied upon to make investment decisions. J.P. Morgan Asset

Management’s (JPMAM) model is based on proprietary Long-Term Capital Market Assumptions returns, and an 80% confidence level.

Portfolios are described as equity/bond percentages (e.g., a 40/60 portfolio is 40% equities and 60% bonds). Assumptions include

household income replacement rates shown on slide 13. Consult with a financial professional for a more personalized assessment.

Allocations, assumptions and expected returns are not meant to represent JPMAM performance. Given the complex risk/reward trade-offs

involved, we advise clients to rely on judgment as well as quantitative optimization approaches in setting strategic allocations. References

to future returns for either asset allocation strategies or asset classes are not promises or even estimates of actual returns a client portfolio

may achieve. J.P. Morgan Asset Management.

 New hires and one-time

re-enrollments

Automatic features are on the rise, in popularity and practice

Plans with automatic features

Automatic features are

here to stay

SECURE 2.0 mandates

automatic features in new

plans, state mandates

require them and most well-

established plans have

them.

Employers may consider

taking their retirement plans

to the next level and auto-

enroll and auto-escalate

periodically. 9 out of 10

employees have a

favorable/neutral view on

automatic features.

Employees can opt out.

Saving

Note: 2013 total n= 796; 2023 total n=788.

Source: J.P. Morgan Plan Sponsor Research 2013, 2023; J.P. Morgan Plan Participant Research 2021.

14%

22%

14%

15%

20%

10%

20%

30%

40%

50%

60%

2013 2023 2013 2023

43%

21%

52%

43%

+21%

+105%

 New hires and periodic

re-enrollments

 New hires only

 Other method

Automatic enrollment Automatic escalation

GTR

Benefit of saving and investing early

Source: J.P. Morgan Asset Management, Long-Term Capital Market Assumptions. Compounding is the increasing value of assets due to

investment return earned on both principal and prior investment gains. The above example is for illustrative purposes only and not

indicative of any investment.

GTR

Account growth of $200 invested/saved monthly

Starting early and

investing are the keys to

compound returns

The early and consistent

investor has the best results.

The early investor who stops

after 10 years does slightly

better than the late investor

who invests significantly

more over a longer time.

And the consistent saver who

does not invest loses out on

higher returns.

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

$550,000

25 30 35 40 45 50 55 60 65

Age

Consistent investor:

Age 25 to 65

Earned 7.0% per year

Late investor:

Age 35 to 65

Earned 7.0% per year

Consistent saver in cash:

Age 25 to 65

Earned 2.3% per year

Early investor:

Age 25 to 35

Earned 7.0% per year

Ending portfolio

$512,700

$242,600

$270,100

$158,300

Saving

Invested: $96,000

Invested: $24,000

Invested: $72,000

Saved: $96,000

The benefits of auto-escalation

Individual is assumed to retire at the end of age 65. Growth of portfolio is tax deferred; ending portfolio may be subject to tax.

Source: J.P. Morgan Asset Management, Long-Term Capital Market Assumptions. The above example is for illustrative purposes only and

not indicative of any investment.

GTR

Account growth from contributions, employer match and investment returns

Model assumptions

Start age: 25

Retirement age: 65

Starting salary: $50,000

Wage growth: 2.5%

Assumed annual employer

match: 100% of employee

contribution up to 5%

Investment return: 7.0%

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

25 30 35 40 45 50 55 60 65

Age

Return

Contribution

Employer match

Ending portfolio

Escalates by 1% annually from 3%

until capping at 10%

Consistent 3% contribution

Consistent 10% contribution

16%

76%

17%

74%

12%

76%

$2.2M

$2.0M

$880K

Saving

Tax implications for retirement savings by account type

GTR

Federal taxes; states may differ. This is not intended to be individual tax advice. Consult your tax professional.

Income and other restrictions may apply to contributions. Tax penalties usually apply for early withdrawals. Qualified withdrawals are

generally those taken over age 59½; qualification requirements for amounts converted to a Roth from a traditional account may differ; for

some account types, such as Roth accounts, contributions that are withdrawn may be qualified. See IRS Publications 590 and 560 for more

information.

Withdrawals from after-tax 401(k) and non-deductible IRAs must be taken on a pro-rata basis including contributions and

earnings growth. For non-deductible IRAs, all Traditional IRAs must be aggregated when calculating the amount of pro-rata contributions

and earnings growth.

There are eligibility requirements. Qualified medical expenses include items such as prescriptions, teeth cleaning

and eyeglasses and contacts for a medical reason. Cosmetic procedures, such as teeth whitening, and general health improvement, such

as gym memberships and vitamins, are not qualified expenses. A 20% tax penalty applies on non-qualified distributions prior to age 65.

After age 65, taxes must be paid on non-qualified distributions. See IRS Publication 502 for details.

Source: J.P. Morgan Asset Management.

Retirement accounts:

Taxes generally apply

to contributions or

withdrawals. Most

withdrawals must

be qualified to avoid

tax penalties.

Pre-tax 401(k)/

Traditional IRA

Roth 401(k)/

Roth IRA

Health Savings

Account (HSA)

After-tax 401(k)/

non-deductible

Traditional IRA

(Taxed as ordinary income)

(For qualified health

care expenses)

(Investment returns taxed

as ordinary income)

(For qualified withdrawals)

Preferential tax treatment Subject to taxes

Contributions

Investment growth Withdrawals

If not used for qualified

health care expenses,

withdrawals after age 65

will be taxed as ordinary

income (without penalty).

Saving

Diversified sources of retirement funding

This is not intended to be individual tax advice; consult your tax professional.

Must have a qualifying high-deductible health plan to make contributions. Funds in the HSA may be withdrawn tax free for qualified medical

expenses unless a credit or deduction for medical expenses is claimed. After age 65 funds also may be withdrawn at ordinary income tax

rates without penalty for any reason.

Subject to 5-year Roth account holding period and age requirements.

Source: J.P. Morgan Asset Management.

GTR

Retirement funding

sources are not created

equal

Be aware of:

 Income taxes

 How much Social Security

benefit is subject to tax

 Additional required

Medicare premiums

Qualified withdrawals from

Roth or Health Savings

Accounts can provide tax-

free funding that will not

result in reduction of

government benefits.

Health Savings

Account

Roth 401(k)/IRA

Pre-tax 401(k)/

Traditional IRA

Taxable Account

Tax-free withdrawals

(for qualified health care

expenses)

Tax-free withdrawals

Tax-exempt interest

Taxable withdrawals

(ordinary income)

Ordinary dividends

Taxable interest

Qualified dividends

Realized capital gains

Investment earnings/

withdrawals

Account type

Social Security % taxed?

Medicare surcharges?

Income taxes

owed?





Included when calculating whether:

Saving

20 25 30 35 40 45 50 55 60 65 70 75 80

Annual taxable income ($)

Age

Evaluate a Roth at different life stages

*If eligible to make a deductible contribution (based on your MAGI = Modified Adjusted Gross Income).

SECURE 2.0 increased the starting age for RMD (Required Minimum Distributions) from 72 to 75 over the next 10 years. See slide 49 for more

details. The illustration reflects savings options into Traditional and Roth IRA accounts, as well as into pre-tax and Roth 401(k) accounts.

RMDs are typically due no later than April 1 following the year the owner turns their distribution age (72-75) and are calculated every year

based on the year-end retirement account value and the owner/plan participant’s life expectancy using the IRS Uniform or Joint Life

Expectancy Table. If the employer contributions are pre-tax, they are subject to tax upon distribution.

The above example is for illustrative purposes only.

Source: J.P. Morgan Asset Management.

GTR

Contribute to a Roth account in lower income years; Traditional in higher income years

Tax diversification

Managing taxes over a

lifetime requires balancing

your current and future tax

pictures. Make income tax

diversification a priority to

have more flexibility and

control in retirement.

General Rule: Contribute to a

Roth early in your career if

you expect upward wage

trajectory and shift to a

Traditional account as your

income increases.

Consider the exceptions if

wealth is concentrated in

tax-deferred accounts.

Roth 401(k) or IRA

Either/both

Pre-tax 401(k)/

Traditional IRA*

RMDs

Working years Retirement

Next tax bracket

72-75

Proactive Roth conversions in lower

income years.

Roth 401(k) contributions

in peak earning years.

Exceptions if wealth is concentrated in tax-deferred accounts:

Saving

1 2

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

50 52 54 56 58 60 62 64

Maximizing an HSA for health care expenses

Must have a qualifying high-deductible health plan to make contributions. Funds in the HSA may be withdrawn tax free for qualified

medical expenses unless a credit or deduction for medical expenses is claimed. After age 65 funds also may be withdrawn for any reason

and taxed as ordinary income without penalty. Some health insurance premiums may be qualified expenses such as COBRA coverage,

coverage while receiving state or federal unemployment compensation, Medicare Part B and D premiums and qualified long-term care

(LTC) insurance premiums up to certain limits but excludes Medigap/Medicare supplement policies and most hybrid products that

combine LTC with annuities and life insurance. See IRS Publications 969 and 502. This is not intended to be individual tax advice; consult a

tax professional.

The above example is for illustrative purposes only and not indicative of any investment. 2024 family contribution limit of $8,300 is adjusted

for inflation of 2.5% for 15 years with catch-up contributions of $1,000 per person starting at age 55 in 2029. Does not include account fees.

Present value of illustrated HSA is $197,360. Estimated savings from tax deductions at a 37% marginal rate are $63,360. Assumes cash or

income used for health care expenses is not withdrawn from an account with a tax liability. Assumes $2,000 was held in a cash account

and not earning a return. Individual 2024 contribution limit is $4,150.

Source: IRS.gov; Medicare.gov; J.P. Morgan Asset Management.

GTR

Health Savings Accounts (HSAs) are triple tax advantaged

Maximum family contribution with catch-ups, 7% return and 24% marginal tax rate

Make the most of it

Investing your HSA

contributions for the long

term and paying for current

health care expenses out of

other savings can be a very

tax-efficient strategy if you

are able to do so.

Tax-free for qualified health care

expenses in retirement

$116,590 Tax-deferred earnings

$171,240 Contributions with

catch-ups for the last 10 years

$287,830: ending balance

Age

$41,100 Tax deductions

$287,830 provides about 14 years

of qualified Medicare-related

health care expenses for a couple.

Saving

Prioritizing long-term retirement savings

Must have a high-deductible health insurance plan that is eligible to be paired with an HSA. Those taking Social Security benefits age 65 or

older and those who are on Medicare are ineligible. Tax penalties apply for non-qualified distributions prior to age 65; consult IRS

Publication 502 or your tax professional.

This assumes that a diversified portfolio may earn 7.0% over the long term. Actual returns may be higher or lower. Generally, consider

making additional payments on loans with a higher interest rate than your long-term expected investment return.

Income limits may apply for IRAs. If ineligible for these, consider a non-deductible IRA or an after-tax 401(k) contribution. Individual

situations will vary; consult your tax professional.

Source: J.P. Morgan Asset Management analysis. Not intended to be a personal financial plan.

GTR

Getting started

Start with emergency

savings to weather spending

and income shocks

throughout the year and

make sure to take advantage

of employer matching funds

if they are available.

An HSA offers triple tax

benefits if used for qualified

medical expenses in

retirement.

Emergency reserve (see “Annual emergency reserves” on slide 26)

Pay down higher interest loans

(such as credit card debt/student loans with interest > 7.0%)

HSA (Health Savings Account)

Pay down lower interest loans

(such as student loans with interest < 7.0%)

Taxable account

Prioritizing savings

Start here

Maximize

employer

match

Maximize

contribution

IRA

Additional Defined Contribution savings

Defined Contribution savings to maximize employer match

(if available)

Saving

Annual emergency reserves

Source: J.P. Morgan Asset Management analysis, 2023; longitudinal Chase data (2022-2023) of those households with monthly income, which may include wage

income, unemployment, etc. Chase data includes internal select data from JPMorgan Chase Bank, N.A. and its affiliates (collectively “Chase”) including select

Chase check, cash, credit and debit card and electronic payment transactions from January 1, 2022 to December 31, 2023. Additional information on J.P. Morgan

Asset Management’s data privacy standards available at

https://am.jpmorgan.com/us/en/asset-management/mod/insights/retirement-insights/gtr-

privdisc/

. Spending shocks are calculated monthly and include those months when monthly spending is 25% above the previous 12 months’ median spending

and the 25% excess spending amount could not be funded by that month’s income. Income shocks are calculated monthly and include those months when

monthly income is 25% less than the previous 12 months’ median income and that month’s spending amount could not be funded by the reduced income.

GTR

Net income in weeks needed to weather spending and income shocks

Prepare for

uncertainties in life

Life is uncertain – spending

shocks and/or job losses

can happen at anytime.

Emergency savings can help

pay for these uncertainties

and keep retirement savings

intact.

Workers typically encounter

spending shocks more

frequently (about once every

three months) than income

shocks (about once a year).

• Consider setting aside 2-3

months of pay

Retirees encounter more

spending shocks in larger

amounts than workers, likely

due to unpredictable costs

such as health care.

• Consider setting aside 3-6

months of income

Workers (age 25-64) Retirees (age 65+)

4 4

$<50k $50-90k $90-150k $150k-1m

Net income in number of weeks

Gross income

50th percentile

75th percentile

Range

8 8

$<50k $50-90k $90-150k $150k-1m

Net income in number of weeks

Gross income

50th percentile

75th percentile

Range

Saving

Lack of emergency savings can impact retirement readiness

Source: How Financial Factors Outside of a 401(k) Plan Can Impact Retirement Readiness

https://www.ebri.org/content/summary/how-financial-factors-outside-of-a-401(k)-plan-can-impact-retirement-readiness

GTR

Build emergency

savings

Emergency savings is a

necessity for everyone.

Households without an

adequate cash buffer are

more likely to take on debt

and find themselves at risk

of not achieving a successful

retirement outcome.

Spending

Households with spending spikes

Monthly spending 25% above the previous 12 months’ median spending

9 in 10

have spending spikes > income

1 in 3

households cannot fund spikes

with income and cash reserves

17%

took a

plan loan

48%

increased

credit card debt

13%

decreased

contributions

What actions were taken by households to raise cash?

$400,000

$800,000

$1,200,000

$1,600,000

25 30 35 40 45 50 55 60 65

Age

Constant contributions portfolio

Portfolio with loans and withdrawals

$1,324,200

$937,100

$387,100 less

Assumed cash flows: 401(k) contributions, loans and withdrawals

The toxic effect of loans and withdrawals

Source: J.P. Morgan Asset Management. For illustrative purposes only. Hypothetical portfolio is assumed to be invested 60% in the S&P 500

and 40% in the Bloomberg Capital U.S. Aggregate Index from 1983-2023. Starting salary of $30,000 increases by 2.5% each year. Loan and

withdrawal amounts are assumed to be $10,000. Loan interest rate is assumed to be 7.5% and is paid off over 4 years.

GTR

Growth of 401(k) investment

Mitigate the effects of

loans

If taking a loan from your

401(k) is unavoidable, try to

mitigate the impact by

continuing contributions

while repaying the loan. It is

especially important to

ensure you continue to

receive an employer match,

if available.

-30%

-20%

-10%

10%

20%

25 30 35 40 45 50 55 60 65

As a % of salary

Age

Loan Withdrawal

Loan

repayment

Loan

repayment

Contributions: 5% Match: 5% Constant contributions: 10%

Spending

Reasons for 401(k) plan loans and withdrawals

Source: Employee Benefit Research Institute, Greenwald Research: 2023 Retirement Confidence Survey. Respondents could select all that

apply.

Build emergency

savings and contribute

to health savings

accounts to help you

avoid a 401(k) loan.

This can help keep you on

track for retirement.

Spending

Reasons workers took a plan loan or withdrawal in the last 12 months

2023 Retirement Confidence Survey

15%

16%

17%

20%

21%

25%

31%

38%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Other

Pay for eldercare or childcare

Pay for home or car repairs

Cover an education expense

Job loss or spouse's job loss

COVID-related need

Buy a car or other large purchase

Make ends meet

Cover other emergency expense

Cover medical expenses

Pay off credit card bill/debt

GTR

3.0%

4.5%

3.0%

2.5%

2.9%

4.8%

0.4%

2.7%

2.6%

3.3%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Housing Health care Food & beverage Transportation Overall inflation

1982-2023 2023

Take a long-term view

Households may benefit

from a long-term view of

inflation and how spending

may change over time.

As a percentage of their

spending, older households

purchase more health care

and gifts, but less on food

and transportation.

The spending categories

shown are 89% of spending

for households age 75+.

Annual average inflation by spending category

Spending and inflation

GTR

Average annual spending by age and category 2017-2022

Spending

Source (top chart): Bureau of Labor Statistics (BLS), 2017-2022 annual average Consumer Expenditure Survey, adjusted to December 2023

dollars. Housing inflation includes imputed rent (the amount a household would pay to rent the house they own). Housing spending

includes mortgage payments, rent, property taxes, maintenance, utilities and furnishings. Those who own their home outright or have low

fixed mortgages may have a hedge against inflation. Additional spending categories for age 35-44 and 75+, respectively: entertainment 6%

and 4%; other 4% and 4%; apparel 3% and 2%; education 2% and 1%.

Source (bottom chart): BLS, Consumer Price Index (all urban consumers, seasonally adjusted), J.P. Morgan Asset Management.

41.6%

6.9%

15.3%

19.1%

2.7%

40.1%

16.0%

13.5%

12.4%

7.0%

0.0%

15.0%

30.0%

45.0%

Housing Health care Food & beverage Transportation Gifts & charity

35-44 75+

$15,000

$30,000

$45,000

$60,000

$75,000

$90,000

60-64 65-69 70-74 75-79 80-84 85-89 90-94 95+

Age

Travel

Apparel & services

Entertainment

Other

Transportation

Food & beverage

Education

Housing (includes

mortgage)

Charitable

contributions

Health care

Changes in spending

Annual average household spending by age

Spending

Source: J.P. Morgan Asset Management, based on internal select data from JPMorgan Chase Bank, N.A. and its affiliates (collectively

“Chase”) including select Chase check, credit and debit card and electronic payment transactions from January 1, 2017 to December 31,

2023. Check and cash distribution: 2019 CE Survey; J.P. Morgan Asset Management analysis. Information that would have allowed

identification of specific customers was removed prior to the analysis. Other includes: tax payments, insurance, gambling, personal care

and uncategorized items. Asset estimates for de-identified and aggregated households supplied by IXI, an Equifax Company; estimates

include all financial assets except employer-sponsored plans and do not include home equity. Additional information on J.P Morgan Asset

Management’s data privacy standards available at

https://am.jpmorgan.com/us/en/asset-management/mod/insights/retirement-

insights/gtr-privdisc/. Retired households receive retirement income only, including Social Security, pension and/or annuity payments.

$68,000

$64,370

$58,660

$53,880

$51,540

$74,670

$51,020

$51,100

Partially and fully retired households

$250k-$750k investable wealth

What to expect

Average spending declines

from the early part of

retirement, then tends to

flatten out. Those at older

ages tend to spend less on

all categories except health

care and charitable

contributions.

Those who live to the oldest

ages may have costs related

to long-term care.

GTR

Changes in spending

GTR

What to expect

Average spending is highest

at midlife. Those at older

ages tend to spend less on

all categories except health

care and charitable

contributions.

Those who live to the oldest

ages may have costs related

to long-term care.

Spending

Source: J.P. Morgan Asset Management, based on internal select data from JPMorgan Chase Bank, N.A. and its affiliates (collectively

“Chase”) including select Chase check, credit and debit card and electronic payment transactions from January 1, 2017 to December 31,

2023. Check and cash distribution: 2019 CE Survey; J.P. Morgan Asset Management analysis. Information that would have allowed

identification of specific customers was removed prior to the analysis. Other includes: tax payments, insurance, gambling, personal care

and uncategorized items. Asset estimates for de-identified and aggregated households supplied by IXI, an Equifax Company; estimates

include all financial assets except employer-sponsored plans and do not include home equity. Additional information on J.P. Morgan Asset

Management’s data privacy standards available at

https://am.jpmorgan.com/us/en/asset-management/mod/insights/retirement-

insights/gtr-privdisc/.

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85-89 90-94 95+

Age

Travel

Apparel & services

Entertainment

Other

Transportation

Food & beverage

Education

Housing (includes

mortgage)

Charitable

contributions

Health care

$131,860

$122,210

Annual average household spending by age

$102,640

$88,870

$89,000

$128,500

$92,970

All households

$1m-$3m investable wealth

85%

66%

46%

34%

30%

24%

0% 20% 40% 60% 80% 100%

>$0

>$1M

>$2M

>$3M

>$4M

>$5M

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

0 5 10 15 20 25 30 35

Portfolio value

Years in retirement

4% 5% 6%

The 4% rule: projected outcomes vs. historical experience

Source: These charts are for illustrative purposes only and must not be used, or relied upon, to make investment decisions. Portfolios are

described as equity/bond percentages (e.g., a 40/60 portfolio is 40% equities and 60% bonds).

Right chart: The portfolio returns for the historical analysis are calculated based on 40% S&P 500 Total Return and 60% Bloomberg U.S.

Aggregate Total Return. Each portfolio's starting value is set at $1,000,000. Withdrawals are increased annually by CPI (CPI NSA Index).

Ending wealth at the end of each 30-year rolling period is in nominal terms.

Left chart: The hypothetical portfolio assumes All Country World Equity and U.S. Aggregate Bonds. J.P. Morgan Asset Management’s

(JPMAM) model is based on proprietary Long-Term Capital Market Assumptions equilibrium returns. The resulting projections include only

the benchmark return associated with the portfolio and do not include alpha from the underlying product strategies within each asset

class. The yearly withdrawal amount is set as a fixed percentage of the initial amount of $1,000,000 and is then inflation adjusted over the

period (2.5%). Allocations, assumptions and expected returns are not meant to represent JPMAM performance. Given the complex

risk/reward trade-offs involved, we advise clients to rely on judgment as well as quantitative optimization approaches in setting strategic

allocations. References to future returns for either asset allocation strategies or asset classes are not promises or even estimates of actual

returns a client portfolio may achieve.

GTR

40/60 portfolio at various initial withdrawal rates

Projected nominal outcomes, 80

percentile

Good in theory, poor in

practice

The 4% rule is the maximum

initial withdrawal percentage

that has a high likelihood of

not running out of money

after 30 years. With current

life expectancies, a 35-year

view is more appropriate.

The outcomes are sensitive

to forward-looking return

assumptions and the rule is

not guidance on how to

efficiently use your wealth.

You may want to consider a

dynamic approach that

adjusts over time to more

effectively use your

retirement savings.c

Spending

Historical ending wealth at 4% initial

withdrawal rate (1928-2023)

67 rolling 30-year periods

-10%

10%

20%

30%

1966 1971 1976 1981 1986 1991 1996

Assumed annual return: 8.1%

1970 1975 19851980 1990

2000

1995

40/60 portfolio: Actual annual return: 9.5%

$500,000

$1,000,000

$1,500,000

$2,000,000

65 70 75 80 85 90 95 100

Age

Assumed annual return: 8.1%

40/60 portfolio: Actual annual return: 9.5%

Rate of return: actual vs. average 1966-2000

Dollar cost ravaging: timing risk of withdrawals

Assumptions (top chart): Retire at age 65 with $1,000,000 and withdraw 4% of the initial portfolio value ($40,000). Withdrawal amount

increased by historical inflation (CPI-U) each year. Returns are based on a hypothetical portfolio, which is assumed to be invested 40% in the

S&P 500 Total Return Index and 60% in the Bloomberg Capital U.S. Aggregate Index. The assumptions are presented for illustrative purposes

only. They must not be used, or relied upon, to make investment decisions. There is no direct correlation between a hypothetical investment

and the anticipated future return of an index. Past performance does not guarantee future results.

Annual inflation (CPI-U) increased from 2.4% in 1966 to 6.3% in 1970; 10-year U.S. Treasury rate increased from 4.93% in 1966 to 7.35% in 1970.

Source: J.P. Morgan Asset Management; U.S. Bureau of Labor Statistics; Department of the Treasury.

GTR

Portfolio value over time 1966-2000

Assumes 4% initial withdrawal rate

Sequence of return risk

Withdrawing assets in a

volatile market early in

retirement can ravage a

portfolio. Consider

investment solutions that

incorporate downside

protection such as:

• Balanced risk and

diversification at the

beginning of retirement

• Annuities with guarantees

and/or protection

features

• Investments that use

options strategies for

defensive purposes

Spending

-10%

10%

20%

30%

1966 1971 1976 1981 1986 1991 1996

1970 1975 19851980 1990 20001995

$500,000

$1,000,000

$1,500,000

65 70 75 80 85 90 95 100

Age

Withdrawal annually increased by inflation

Withdrawal dynamically adjusted based on performance

Rate of return: 40% equity/60% bond portfolio 1966-2000

Mitigating dollar cost ravaging: dynamic spending

Assumptions (top chart): Retire at age 65 with $1,000,000 and withdraw 4% of the initial portfolio value ($40,000). Fixed withdrawal scenario

assumes the withdrawal amount is increased by historical inflation (CPI-U) each year. Dynamic withdrawal scenario assumes that if the

annual return on portfolio is: 1) less than 5%, withdrawal remains the same as the prior year; 2) between 5% and 10%, withdrawal is

increased by actual inflation (CPI-U); 3) greater than 10%, withdrawal is increased by actual inflation +3%. While the dynamic withdrawal

scenario during this historical period provided 25% more total spending in today’s dollars, it is for illustrative purposes only and may not be

successful during other time periods. Returns are based on a hypothetical portfolio, which is assumed to be invested 40% in the S&P 500

Total Return Index and 60% in the Bloomberg Capital U.S. Aggregate Index. The assumptions are presented for illustrative purposes only.

They must not be used, or relied upon, to make investment decisions. There is no direct correlation between a hypothetical investment and

the anticipated future return of an index. Past performance does not guarantee future results.

Source: J.P. Morgan Asset Management; U.S. Bureau of Labor Statistics; Department of the Treasury.

GTR

Portfolio value over time 1966-2000

Assumes 4% initial withdrawal rate

Be flexible

Spending the same amount

in retirement grown by

inflation regardless of how

your portfolio is performing

can result in an

unsuccessful outcome.

Consider adjusting your

spending strategy based on

market conditions to help

make your money last and

provide more total spending

through your retirement

years.

Spending

• Enroll in Medicare the month before the month you turn 65 to

avoid gaps in coverage.

• Stop monthly HSA contributions to avoid tax penalties.

• Part A is free for people who paid payroll taxes for 40 quarters (10

years) and employer coverage is usually primary.

• If you want to contribute to an HSA in the future, do not sign up for

Social Security benefits and disenroll from Part A.

Do not sign up for Medicare

• HSA contributions while on Medicare will result in tax penalties.

Stop HSA contributions and opt out of Medicare Part B

• Once you start Social Security benefits, you will automatically be

enrolled in Part A, retroactive to the lesser of six months or age 65.

• Tax penalties apply if you are enrolled in Part A and contribute to

an HSA.

Contact Medicare.gov to opt out of Part B.

65 and working: should I sign up for Medicare?

Assumes Part A is no cost (generally for people who paid payroll taxes for 40+ quarters or are married to a beneficiary who did so).

Some individuals may choose to sign up for Part A and Part B earlier than shown if they want additional coverage.

Ask your employer for

documentation of creditable coverage for major medical and for drug coverage. Employer coverage for less than 20 people is usually not

creditable and will end at age 65 or become secondary after Medicare has paid.

To disenroll you must have an interview with the Social Security

Administration and use Form CMS 1763. When you sign up for Part A again or sign up for Social Security, coverage may be retroactive for up to 6

months. You will be unable to disenroll if you are receiving Social Security.

Total HSA contributions for the year in excess of the maximum

contribution for the year divided by the number of months you are eligible to make contributions will result in tax penalties (6% of the excess

contribution each year). This is not intended to be individual tax advice; consult your tax professional. For more information, see

www.mymedicarematters.org/enrollment/am-i-eligible, sponsored by the National Council on Aging. Source: IRS Publication 969, National

Council on Aging and Medicare.gov websites as of December 31, 2023; J.P. Morgan Asset Management analysis.

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Assumes adequate employer coverage and qualification for Medicare at age 65

Avoid coverage gaps

and penalties

Creditable coverage is key.

Late enrollment penalties will

apply if you do not have

creditable coverage and do

not sign up during your

enrollment window (3

months before to 3 months

after your 65

birthday

month).

COBRA coverage (a

temporary extension of

major medical employer

coverage when work stops)

is not creditable, although

some extended prescription

coverage may be creditable

(ask for documentation).

Spending

Y N

Check with your employer:

Do you have creditable

coverage for major

medical and drugs?

Do you contribute

to a Health Savings

Account (HSA)?

Have you filed or will you

file for Social Security

benefits within 6 months?

Y N

START HERE

Three steps for Medicare coverage

Medicare does pay for medically necessary skilled nursing facility or home health care, with strict requirements that are difficult to meet on

a limited basis, and for some hospice care. If you transfer assets to others there is a five-year “look back” where the government will recover

the assets transferred if you go on Medicaid. This is not personal advice. Consult an elder care attorney if you have questions.

Source: Medicare.gov as of December 31, 2023; J.P. Morgan Asset Management analysis.

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Medicare details

Medicare the month before

the month you turn age 65 to

avoid coverage gaps unless

your employer has

confirmed you have

creditable coverage.

Re-evaluate your choices

each year.

Spending

Part A:

(inpatient hospital insurance)

Part B:

(insurance that covers doctor visits, tests and

outpatient hospital visits)

Original Medicare

accepted by all

Medicare providers

For help, visit the Medicare Rights Center at www.medicarerights.org or your State Health Insurance

Assistance Program (SHIP) at www.shiptacenter.org.

Option 1

Option 2

Choose your plan

Medicare Advantage/

Part C limited to a

network of providers

Medigap

(

covers gaps in Part

A & B; also called

supplemental)

Part D

drug coverage

(

will have co-pays

and deductibles)

Vision, dental and

hearing

(must buy separate

policies if want coverage)

Includes Part D drug coverage

May cover some vision, dental, hearing and other expenses

(will have co-pays and deductibles for medical and drug expenses)

Prepare for additional expenses: Medicare does not cover most long-term care costs

$139

$497

$107

$209

$120

$282

$175

$410

$86

$400

$800

$1,200

$1,600

Age 65 (2024) Age 95 (2054)

Rising health care costs in retirement

Estimated future value total average monthly cost at age 95 is $3,112. Today’s dollar calculation used a 2.5% discount rate to account for

overall inflation. Medigap premiums typically increase with age, in addition to inflation, except for the following states: AR, CT, MA, ME, MN,

NY, VT, WA. For local information, contact the State Health Insurance Assistance Program (SHIP) https://www.shiptacenter.org/

. Plan G

premium is nationwide average for non-smokers. If Plan G is not available, analysis includes the most comprehensive plan available.

Source: HealthView Services proprietary data file received January 2024 used by permission.

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Original Medicare costs in retirement (in 2024 dollars)

Monthly amount per person

A growing concern

Annual expenses per person

in 2024 are $6,503.

Given variation in health care

cost inflation from year to

year, it may be prudent to

assume an annual health

care inflation rate of 6.0%,

which may require growth as

well as current income from

your portfolio in retirement.

Spending

In 2024 dollars

6.0%

Other out-of-pocket costs

• Vision, dental & hearing

• Parts A & B deductibles not

covered by Medigap

Medigap Plan G (optional

supplemental policy to fill in

gaps of Parts A & B)

Part D premiums & average

prescription out-of-pocket costs

Part B premiums (doctors, tests &

outpatient hospital insurance)

Uncertainties (health care

inflation variability, Medicare

solvency issues)

5.8%

$542

$1,398

$1,484

$205

$457

$200

$400

$600

$800

$1,000

$1,200

Age 65 (2024) Age 95 (2054)

Out-of-pocket costs vary (includes

co-pays, deductibles and

prescriptions)

Medicare Advantage premium

Variation in Medicare Advantage costs

Total costs = annual premium + out-of-pocket costs. High costs: weighted average of medical costs (70th percentile) and prescription costs

(65th percentile). Low costs: weighted average for medical costs (25th percentile) and prescription costs (35th percentile). Plans include

Part D and exclude those with subsidies for low-income beneficiaries. Today’s dollar calculation used a 2.5% discount rate.

Estimated future value of total average costs at age 95 is $1,791. Cost estimates include increased use of medical care at older ages and will

vary based on plan characteristics.

Source: HealthView Services, proprietary data file received January 2024, used by permission.

Estimated Medicare Advantage with Part D and out-of-pocket expenses

Monthly amount per person

Dramatic differences in

costs depending on

health

Be prepared to pay more for

health care in the event you

experience a health issue,

which becomes more

common as one ages.

• Be aware: Although

Medicare Advantage

plans have out-of-pocket

caps, those limits do not

include prescriptions.

• Consider maintaining an

emergency reserve fund

for high out-of-pocket

cost periods.

Spending

In 2024 dollars

$711 low

$427 high

$990 high

$854 average

$303 low

$359 average

Total costs

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$500

$459

$333

$208

$83

$0 $200 $400 $600

2024 monthly Medicare surcharges

The Social Security Administration uses the most recent federal return supplied by the IRS. If you amended your return in a way that

changes your surcharge amount, you may need to contact your Social Security office.

Source: Medicare.gov as of January 2024.

This is not meant to be personal tax advice. Please consult your tax professional for specifics for your situation. Modified Adjusted Gross

Income (MAGI) for purposes of calculating Medicare surcharges is Adjusted Gross Income (AGI) plus tax-exempt interest income.

Thresholds increase each year with inflation, except the top threshold, which was added in 2019; this top threshold is set to annually inflate

starting in 2028.

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The surcharge amount is the same for all income levels within a band

If you go over a threshold, you pay the additional premium for that band

Surcharge details

There may be a bigger impact

for singles and surviving

spouses: Medicare

surcharge thresholds for

singles are half of the

thresholds for couples.

Filing an appeal?

If you have stopped work

or you have lower income

due to circumstances

outside of your control,

you might be eligible for an

appeal. See form SSA-44 for

details:

https://www.ssa.gov/forms/

ssa-44-ext.pdf

Spending

Filing single

Filing jointly

$750,000 or more

$193,000-$500,000

$386,000-$750,000

$161,000-$193,000

$322,000-$386,000

$129,000-$161,000

$258,000-$322,000

$103,000-$129,000

$206,000-$258,000

$500,000 or more

Modified Adjusted Gross Income

based on 2022 tax year filing

Additional monthly premium amount

per person

Parts B & D in 2024

Disability increases with age

HIPAA qualifying long-term care includes needing help with two or more activities of daily living such as eating, dressing, bathing,

transferring and toileting or severe cognitive impairment for at least 3 months.

Source: Spillman, Brenda C., Allen, Eva H., and Melissa Favreault. 2021: Informal Caregiver Supply and Demographic Changes: Review of the

Literature. Urban Institute report to the Department of Health and Human Services, Assistant Secretary for Planning and Evaluation, Office of

Behavioral Health, Disability, and Aging Policy, December 2020. Located at

https://aspe.hhs.gov/reports/informal-caregiver-supply-

demographic-changes-review-literature. Derived from data from Figure 2, National Health and Trends Study (NHATS) 2015 data.

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Percentage of age 65+ population who need assistance with two or more activities of

daily living or have severe cognitive impairment

12%

22%

30%

48%

10%

20%

30%

40%

50%

65 - 69 70 - 74 75 - 79 80 - 84 85 - 89 90+

Age

Spending may shift to

long-term care needs at

older ages

Nearly half of those who

survive to the oldest ages

meet the definition of having

long-term care needs. While

it is encouraging that the

other half of this population

does not meet the criteria,

some of these individuals

may require at least some

assistance.

Changes in abilities may

require spending on long-

term care services, a move to

be closer to children, home

modifications or a different

housing arrangement.

Spending

26%

20%

14%

10%

30%

10%

15%

20%

25%

30%

35%

<$25k $25K-$75k $75k-$150k $150k-$250k >$250k+

Long-term care planning

GTR

Create a care plan

The monetary value of care

from family and friends is

roughly equal to paid care.

Women are more likely to

require care and need more

years of paid care if paid

care is used.

A care plan may help you:

• Avoid burdening others

• Ensure your family

understands your wishes

• Have more control over

your care

Spending

Lifetime cost of care 65+ if paid care is used

Duration of paid care 65+ if paid care is used

Average value of unpaid care when unpaid care is used is $208,800 for women and $196,800 for men.

Long-term care includes needing help with two or more activities of daily living such as eating, dressing, bathing, transferring and toileting

or severe cognitive impairment. Average of cost is in 2020 dollars and includes all payors.

Source: U.S. Department of Health and Human Services, APSE Brief, August 2022, Long-term Services and Supports for Older Americans,

Risks and Financing, 2022.

Average

Women: $278k

Men: $200k

33%

26%

41%

38%

26%

36%

15%

30%

45%

< 3 years 3-5 years 5+ years

Women Men

Long-term care planning options

If you transfer assets to others, there is a five-year “look back” where the government will recover the assets transferred if you go on

Medicaid. This is not personal advice; consult an elder care attorney if you have questions.

HSAs may be used to fund qualified traditional long-term care policy premiums up to certain limits. Necessary home improvements may

qualify if they don’t improve the value of your home. Services for chronically ill individuals who are unable to perform two or more activities

of daily living or who have severe cognitive impairment may be qualified if they are part of a prescribed plan from a licensed practitioner.

For a list of qualified expenses, see IRS Publication 502 or consult your tax professional; this is not meant to be personal tax advice.

Source: J.P. Morgan Asset Management, latest available data as of December 31, 2023.

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Consider utilizing more than one option

Start planning early

• Is it feasible to buy less

insurance coverage and

combine it with other

solutions?

• Health Savings Accounts

(HSAs) may be used tax

free for qualified expenses

in retirement.

• Prefer care at home?

Consider how you will

remain socially connected.

Spending

Family & friends

Will you want to move closer?

Savings / expense reductions

Some expenses such as travel may go down

Insurance

Options: traditional long-term care insurance, combination life

and annuity products, life insurance for a surviving spouse and

deferred annuities for income late in life

Home equity

Second homes may be sold; the home equity in your primary

residence may be used; credit availability and home value may

fluctuate

Life plan communities

Often starts with independent living and offers additional services

or facilities when needed. More information:

https://www.mylifesite.net/

Medicaid:

After exhausting

other options

Rules to qualify vary

by state but

generally you must

be low income with

few assets to qualify

Consider how to fund your retirement goals

Source: J.P. Morgan Asset Management.

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Retirement portfolio priorities

Align your portfolio with

your goals

Once you determine how you

want to fund your goals,

make the necessary

adjustments in your

investment and spending

strategies.

Investing

Age

Increase Wealth:

Investment return exceeds

spending needs

Priority: Total return

Preserve Principal:

Spend investment return only

(income and/or appreciation)

Priority: Generate income

Spend Principal:

Spend investment return and

a portion of your principal

Priority: Sustainable spending

• A dynamic withdrawal strategy

• Protected lifetime income

• A combination of both

Retirement

Wealth

For illustrative purposes only. Fixed income is subject to interest rate risk. Fixed income prices generally fall when interest rates rise. The

price of equity securities may rise or fall because of changes in the broad market or changes in a company’s financial condition, sometimes

rapidly or unpredictably. Investing in alternative assets involves higher risks than traditional investments and is suitable only for the long

term. They are not tax efficient and have higher fees than traditional investments. They may also be highly leveraged and engage in

speculative investment techniques, which can magnify the potential for investment loss or gain.

*Equity, fixed income and cash are considered “traditional” asset classes. The term “alternative” describes all non-traditional asset classes.

They include private and public equity, venture capital, hedge funds, real estate, commodities, distressed debt and more.

Source: J.P. Morgan Asset Management.

Considerations

Potential solutions

What is the time horizon

and appropriate planning

strategy for your heirs and your

estate goals?

How much of your total

spending varies

month

to month?

How much do

you

regularly

spend

each

month?

Social Security

Income distributed from:

• Dividend-paying stocks/funds

• Fixed income securities/funds

• Multi-asset solutions

Pension

Protected lifetime income

Capital preservation strategies

Alternatives*

Cash and cash equivalents

Investing

Building your plan

It may be useful to match

dependable income sources

with regular retirement

spending, while coordinating

income-oriented solutions

and a cash reserve to meet

more variable expenses.

Legacy

Variable

spending

Stable

spending

Growth-oriented portfolios

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Structuring a portfolio to match investor goals in retirement

Range of stock, bond and blended total returns

Annual total returns, 1950-2023

Goals-based wealth management

Source (top chart): J.P. Morgan Asset Management.

Source (bottom chart): Bloomberg, FactSet, Federal Reserve, Robert Shiller, Strategas/Ibbotson, J.P. Morgan Asset Management.

Returns shown are based on calendar year returns from 1950 to 2023. Stocks represent the S&P 500 Shiller Composite and Bonds represent

Strategas/Ibbotson for periods from 1950 to 2010 and the Bloomberg Aggregate thereafter. Cash represents the U.S. 90 Day Treasury Bill

Total Return.

Portfolio allocations are hypothetical and are for illustrative purposes only. They were created to illustrate different risk/return profiles and

are not meant to represent actual asset allocation.

GTR

Divide and conquer

Aligning your investment

strategy by goal can help you

take different levels of risk

based on varying time

horizons and make sure you

are saving enough to

accomplish all of your goals

– not just the ones that occur

first.

Investing

Short-term goals

Includes an emergency

reserve

Cash & cash

equivalents

Equities

Bonds

Equities

Bonds

Medium-term goals

5-10 years, e.g., college, home

Long-term goals

15+ years, e.g., retirement

-39%

-13%

-15%

-3%

-2%

-1%

47%

43%

33%

14%

28%

23%

21%

11%

19%

16%

17%

12%

14%

-60%

-40%

-20%

20%

40%

60%

1 year 5-year rolling 10-year rolling 20-year rolling

Equities Bonds 50/50 Cash

$63,637

$29,154

$17,494

$11,483

$7,898

$5,664

$4,179

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

Fully

Invested

Missed 10

best days

Missed 20

best days

Missed 30

best days

Missed 40

best days

Missed 50

best days

Missed 60

best days

9.7%

5.5%

2.8%

0.7%

-1.2%

-2.8%

-4.3%

Impact of being out of the market

Source: J.P. Morgan Asset Management analysis using data from Bloomberg. Returns are based on the S&P 500 Total Return Index, an

unmanaged, capitalization-weighted index that measures the performance of 500 large capitalization domestic stocks representing all

major industries. Indices do not include fees or operating expenses and are not available for actual investment. The hypothetical

performance calculations are shown for illustrative purposes only and are not meant to be representative of actual results while investing

over the time periods shown. The hypothetical performance calculations are shown gross of fees. If fees were included, returns would be

lower. Hypothetical performance returns reflect the reinvestment of all dividends. The hypothetical performance results have certain

inherent limitations. Unlike an actual performance record, they do not reflect actual trading, liquidity constraints, fees and other costs. Also,

since the trades have not actually been executed, the results may have under- or overcompensated for the impact of certain market factors

such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of

hindsight. Returns will fluctuate and an investment upon redemption may be worth more or less than its original value. Past performance is

not indicative of future returns. An individual cannot invest directly in an index. Data as of December 31, 2023.

GTR

Returns of the S&P 500

Performance of a $10,000 investment between January 1, 2004 and December 29, 2023

Plan to stay invested

Losses hurt more than gains

feel good. Market lows can

result in emotional decision

making.

Taking “control” by selling

out of the market after the

worst days is likely to result

in missing the best days that

follow. Investing for the long

term in a well-diversified

portfolio can result in a

better retirement outcome.

Investing

Seven of the 10 best days occurred within two weeks of

the 10 worst days

• Six of the seven best days occurred after the worst days

• The second worst day of 2020 — March 12 — was

immediately followed by the second best day of the year

SECURE 2.0 Act: broadening access to more people and

increasing savings

For employers with 100 or fewer employees. For employers with 50 or fewer employees, the 50% startup cost limit is 100%.

For employers with up to 50 employees that make plan contributions on behalf of employees whose wages do not exceed $100,000. The credit

amount will be phased out for employers with between 51 and 100 employees.

Contributions that exceed $2,500 will spill over to the long-term retirement savings portion of the plan. Employers may automatically enroll

participants at a rate of up to 3% of pay.

This list of provisions is not detailed or exhaustive.

Source: SECURE 2.0 Act of 2022. J.P. Morgan analysis. https://am.jpmorgan.com/us/en/asset-management/adv/insights/retirement-

insights/defined-contribution/secure-2-0/. Not intended to be tax advice. Consult your tax professional.

KEY THEME DETAILS EFFECTIVE

Replace the Saver’s Credit with the Saver’s

Match equal to 50% of plan or IRA

contributions, up to $2,000

Increased catch-up amount for individuals

aged 60-63 by 50% more than the regular

catch-up limit in employer-sponsored plans

Tax credit for 50% of startup cost up to $5,000

per year for three years

Tax credit for employer contribution of up to

$1,000 per employee for five years

2023

Encourage small businesses to

create retirement plans

through increased tax credits

Help manage student loan debt

burden

Emergency savings accounts in

Defined Contribution plans to

build strong financial foundation

Maximum account value of $2,500

(after-tax

contributions; tax-free distributions)

2024

Employers will be allowed to make matching

contributions to the plans for participants

paying student loans

2024

Allow greater savings in

retirement plans

New plans will be required to auto enroll at a

starting rate of at least 3% and auto escalate to

at least 10% but no more than 15%

2025

2027

GTR

Reference

SECURE 2.0 Act: tax implications

KEY THEME DETAILS EFFECTIVE

Exempt in-plan Roth accounts from lifetime RMDs

Require catch-up contributions to be made on an

after-tax Roth basis for highly paid employees

RMD starting age of 73 for individuals who reach

age 72 after 2022

RMD starting age of 75 for individuals who reach

age 74 after 2032

2023

Increase the starting age for required

minimum distributions (RMDs) from 72 to

75 over the next 10 years – Deferring

RMDs may increase taxes and Medicare

surcharges late in life

Permit rollovers from 529 accounts to

Roth IRAs

Enhance qualifying longevity annuity

contracts (QLAC) – Lifetime income

starting late in life may help fund

possible long-term care needs

Allows up to $200,000 to be used to purchase a

QLAC and delay required minimum distribution as

late as age 85 when annuity payments commence

Dec 29,

2022

Allow rollovers from 529 Plans that have been

open for 15 years to Roth IRAs (subject to a

$35,000 lifetime limit and the annual IRA

contribution limit)

2024

Greater importance of Roth in

employer-sponsored retirement

plans

Permit employer matching contributions on a

Roth basis

2024

Dec 29,

2022

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Reference

2026

Employees with wages in excess of $145,000 (adjusted for inflation) for the prior calendar year must make their catch-up contributions to a Roth

account. While this provision affects participants in 401(k) plans, 403(b) plans, and governmental 457(b) plans, it does not apply to the special

catch-up contributions permitted under 403(b) and governmental 457(b) plans. This provision does not apply to SEP plans or SIMPLE IRA plans.

This list of provisions is not detailed or exhaustive.

Source: SECURE 2.0 Act of 2022. J.P. Morgan analysis. https://am.jpmorgan.com/us/en/asset-management/adv/insights/retirement-

insights/defined-contribution/secure-2-0/. Not intended to be tax advice. Consult your tax professional.

The personal exemption has been repealed and individual tax rates and personal deductions sunset after 2025 as per the TCJA 2017.

Standard deduction: Single $14,600; Married filing jointly $29,200.

Modified Adjusted Gross Income (MAGI) is AGI plus amount excluded from income as foreign earned income, tax-exempt interest and Social Security benefit.

Tax rate Single filers Married filing jointly

Capital gains

& dividends

Medicare tax on earned

income

Medicare tax on net

investment income

Limits to itemized

deductions

10%

Up to $11,600 Up to $23,200

up to $47,025

(single) / $94,050

(married)

1.45% (employee portion,

employers also pay 1.45%)

-Medical expenses greater

than 7.5% of Adjusted Gross

Income (AGI)

-SALT (state and local taxes)

deduction capped at $10,000

-Mortgage interest deduction

limited to primary/secondary

homes with up to $750,000

new debt. Interest deduction

is allowed on new home

equity debt that is used to

buy, build or substantially

improve the home

-Cash charitable

contributions deductible up

to 60% of AGI

12%

$11,600-$47,150 $23,200-$94,300

22%

$47,150-$100,525 $94,300-$201,050

15%

up to $518,900

(single) / $583,750

(married)

24%

$100,525-$191,150 $201,050-$383,900

32%

$191,150-$243,725 $383,900-$487,450

35%

$243,725-$609,350 $487,450-$731,200

2.35% (includes 1.45% employee

tax referenced above plus

additional 0.90% tax for earned

income above MAGI

$200,000/$250,000 threshold)

3.80% (additional tax

will be levied on lesser

of: 1) net investment

income or 2) excess

MAGI above

$200,000/$250,000

threshold)

20%

$518,901 or more

(single) / $583,751

or more (married)

37%

$609,350 or more $731,200 or more

A closer look at tax rates: 2024

Increased levels expire after 2025.

Source: IRS.gov. The presenter of this slide is not a tax or legal professional. This slide is for informational purposes only and should not be

relied on as tax or legal advice. Clients should consult their tax or legal professional before making any tax- or legal-related investment

decisions.

Federal income tax rates applicable to taxable income

Top/tax rates for ordinary income, capital gains and dividend income

Type of gain

Maximum rate

Alternative Minimum Tax (AMT) exemption

Top rate for ordinary income & non-qualified dividends 37%/40.8%

Filing status Exemption Exemption phase-out range

Short-term capital gains (assets held 12 months or less) 37%/40.8%

Single/Head of Household $85,700 $609,350-$952,150

Long-term capital gains (assets held more than 12 months) & qualified dividends 20%/23.8%

Married filing jointly $133,300 $1,218,700-1,751,900

Includes top tax rate plus 3.8% Medicare tax on the lessor of net investment income or excess of MAGI over threshold (single threshold $200,000; married filing jointly $250,000).

The exemption amount is reduced 0.25 for every $1 of AMTI (income) above the threshold amount for the taxpayer’s filing status. For AMTI above the top range the exemption will be $0.

Top federal estate tax rate

40%

Federal estate, GST & gift tax exemption

$13.61 million per individual/$27.22 million per couple

Annual gift tax exclusion

$18,000 per donor, per donee ($36,000 per couple)

Federal estate, generation-skipping transfer (GST) tax & gift tax exemption

GTR

Reference

Retirement plan contribution and deferral limits: 2023/2024

*FRA is Full Retirement Age for Social Security. Assumes FRA at age 67. Maximum benefit if FRA is age 66: $3,618/month in 2023 and

$3,652/month in 2024.

Employer may either match employee’s salary reduction contributions dollar for dollar up to 3% of employee’s compensation or make non-

elective contributions equal to 2% of compensation up to the annual compensation limit. IRS Publication 560.

Employer contributions may not exceed the annual defined contribution limit or 25% of compensation. Other rules apply for self-employed

individuals. IRS Publication 560.

In calendar years before FRA, benefit reduced $1 for every $2 of earned income above the limit; during year of FRA, benefit reduced $1 for

every $3 of earned income in months prior to FRA.

Source: IRS.gov; SSA.gov

Type of Retirement Account Specifics 2023 2024

401(k), 403(b), 457(b)

401(k) elective deferral limit/with catch-up

contribution (age 50 and over)

$22,500/$30,000 $23,000/$30,500

Annual defined contribution limit $66,000 $69,000

Annual compensation limit $330,000 $345,000

Highly compensated employee threshold $150,000 $155,000

403(b)/457 elective deferrals/with catch-up

contribution (age 50 and over)

$22,500/$30,000 $23,000/$30,500

SIMPLE IRA

SIMPLE employee deferrals/with catch-up

deferral (age 50 and over)

$15,500/$19,000 $16,000/$19,500

SEP IRA

Maximum contribution

$66,000 $69,000

SEP minimum compensation $750 $750

SEP annual compensation limit $330,000 $345,000

Health Savings Account

(HSA)

Maximum contribution amount/with catch-up

contribution (age 55 and over)

Single: $3,850/$4,850

Family: $7,750/$8,750

Single: $4,150/$5,150

Family: $8,300/$9,300

Minimum deductible

Single: $1,500

Family: $3,000

Single: $1,600

Family: $3,200

Maximum out-of-pocket expenses

Single: $7,500

Family: $15,000

Single: $8,050

Family: $16,100

Social Security

Wage base $160,200 $168,600

Maximum earnings test exempt amounts

$21,240/year (before FRA*)

$56,520/year (in year of FRA*)

$22,320/year (before FRA*)

$59,520/year (in year of FRA*)

Maximum Social Security benefit at FRA* $3,808/month $3,911/month

Defined benefit – Maximum annual benefit at retirement

$265,000 $275,000

Reference

GTR

Disclosures

GTR

Unless otherwise indicated, all illustrations are shown in U.S. dollars.

Past performance is no guarantee of comparable future results.

Diversification does not guarantee investment returns and does not eliminate the risk of

loss.

Indices are unmanaged and an individual cannot invest directly in an index. Index returns

do not include fees or expenses.

The S&P 500 Index is widely regarded as the best single gauge of the U.S. equities

market. This world-renowned index includes a representative sample of 500 leading

companies in leading industries of the U.S. economy. Although the S&P 500 Index

focuses on the large cap segment of the market, with approximately 75% coverage of

U.S. equities, it is also an ideal proxy for the total market. An investor cannot invest

directly in an index.

The Bloomberg Capital U.S. Aggregate Index represents securities that are SEC-

registered, taxable and dollar denominated. The index covers the U.S. investment-grade

fixed rate bond market, with index components for government and corporate securities,

mortgage pass-through securities and asset-backed securities. These major sectors

are subdivided into more specific indices that are calculated and reported on a regular

basis.

Bonds are subject to interest rate risks. Bond prices generally fall when interest rates

rise.

The price of equity securities may rise or fall because of changes in the broad market or

changes in a company's financial condition, sometimes rapidly or unpredictably. These

price movements may result from factors affecting individual companies, sectors or

industries, or the securities market as a whole, such as changes in economic or political

conditions. Equity securities are subject to "stock market risk," meaning that stock

prices in general may decline over short or extended periods of time.

Investing in alternative assets involves higher risks than traditional investments and is

suitable only for sophisticated investors. Alternative investments involve greater risks

than traditional investments and should not be deemed a complete investment

program. They are not tax efficient and an investor should consult with his/her tax

professional prior to investing. Alternative investments have higher fees than traditional

investments and they may also be highly leveraged and engage in speculative

investment techniques, which can magnify the potential for investment loss or gain. The

value of the investment may fall as well as rise and investors may get back less than they

invested.

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without notice, as are statements of financial market trends, which are based on current

market conditions. We believe the information provided here is reliable, but do not

warrant its accuracy or completeness. References to future returns are not promises or

even estimates of actual returns a client portfolio may achieve.

Model Portfolio Details (Equity%/Bond%) Source: PI-AA-MODELS_4Q20 0903c02a81cfc27a

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JP-GTR | 0903c02a81c9c127

NOT FDIC INSURED. NO BANK GUARANTEE. MAY LOSE VALUE.

Asset class 20/80 40/60 50/50 60/40 80/20

U.S. large cap growth 4.5% 8.8% 11.0% 13.3% 17.5%

U.S. large cap value 4.5% 8.8% 11.0% 13.3% 17.5%

U.S. mid/small cap 2.3% 4.5% 5.5% 6.5% 9.0%

U.S. REITs 1.0% 2.0% 2.5% 3.0% 4.0%

Developed market equities 5.5% 11.3% 14.0% 16.8% 22.5%

Emerging market equities 2.3% 4.8% 6.0% 7.3% 9.5%

U.S. investment-grade bonds 61.8% 45.8% 38.0% 30.0% 14.0%

U.S. high yield bonds 12.3% 9.3% 7.5% 6.0% 3.0%

Emerging market debt 4.0% 3.0% 2.5% 2.0% 1.0%

U.S. cash 2.0% 2.0% 2.0% 2.0% 2.0%

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