NEW YORK, March 29, 2017 /PRNewswire/ -- J.P. Morgan Asset Management today released a new Retirement Insights paper, "Three things to know about DC plan participants under 30." The research reveals defined contribution (DC) preferences among millennials under 30 to help plan sponsors and advisors put these youthful employees on a solid path to a financially secure retirement. Survey results indicate that members of this large and influential age group - working its way toward retirement for the next 35 to 45 years - are not only supportive of a more "automatic" DC plan, but that they expect their employers to play a vital role in helping them save and invest for retirement.

"Our research found that millennials under 30 typically need and also want guidance from their employers, and prefer a DC plan structured to simplify investment decisions," said Catherine Peterson, Global Head of Insights Programs, J.P. Morgan Asset Management. "Getting these young employees on the right track now, early in their careers, can allow the benefits of consistent saving and age appropriate asset allocation to compound over their working lives. The good news is, those under 30 recognize the challenge they face in saving and investing for retirement and appear very receptive to the knowledge, tools and guidance that employers and advisors can provide." Key findings include:


    1. A majority identify as "do it for me" investors - The research shows
       that, despite their generally accepted reputation as self-assured and
       independent, those under 30 are more likely than those 30 and over to
       classify themselves as "do it for me" investors (69% vs. 56%). These
       younger investors say they want help selecting their investments and
       prefer to leave most of the ongoing investment decisions to experienced
       professionals (vs. "do it yourself" investors, who prefer to take a more
       hands-on approach). They are also more likely than those over 30 to
       appreciate receiving notifications from their employer if they are not
       saving enough (62% of those under 30 vs. 34% of those 30 and over).
    2. In general, they expect their employers to take some responsibility for
       helping them save and invest for retirement - These young employees, less
       experienced in managing their own finances - and admittedly a long way
       from retirement, are more likely to assign at least some degree of
       responsibility to their employers for helping them save for retirement
       (82% vs. 73% for those 30 and over). What's more, half of those under 30
       think their employer has an obligation to help them choose the right
       investments, compared with only 22% of their older colleagues.
    3. They are among the strongest proponents of the "automatic 401(k)" - J.P.
       Morgan's    Plan Sponsor research suggests that some plan sponsors may be
       reluctant to adopt the automatic 401(k)--a term we use here to refer to a
       plan that utilizes some combination of automatic plan features, qualified
       default investment alternatives (QDIAs) such as target date funds (TDFs),
       and re-enrollment--for fear of employee pushback. Yet the participant
       research indicates an encouraging level of support among all employees,
       particularly with participants under 30, for these plan features, as well
       as asset allocation strategies, that may help automate and simplify
       employee retirement-related decisions. A large majority of those under 30
       are in favor of or at least neutral toward automatic enrollment (84%) and
       automatic contribution escalation (86%), and the group is close to
       unanimous in its support of target date funds and re-enrollment.

To learn more about J.P. Morgan Asset Management's leading defined contribution investment strategies, product innovations, resources and Retirement Insights program for advisors and plan sponsors, please click here, or view the full paper "Three things to know about DC plan participants under 30" by clicking here.

About J.P. Morgan Asset Management
 J.P. Morgan Asset Management, with assets under management of $1.5 trillion, is a global leader in investment management. J.P. Morgan Asset Management's clients include institutions, retail investors and high net worth individuals in every major market throughout the world. J.P. Morgan Asset Management offers global investment management in equities, fixed income, real estate, hedge funds, private equity and liquidity. JPMorgan Chase & Co. (NYSE: JPM), the parent company of J.P. Morgan Asset Management, is a leading global asset management firm with assets of approximately $2.5 trillion and operations worldwide. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

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SOURCE J.P. Morgan Asset Management