NEW YORK, Sept. 23, 2015 /PRNewswire/ -- J.P. Morgan Asset Management today released a new piece of research, "The Millennials - Now streaming: the millennial journey from saving to retirement." The white paper from authors Michael Cembalest, Chairman of Market and Investment Strategy, and Katherine Roy, Chief Retirement Strategist, comprehensively examines how millennials will manage their finances and maintain their financial independence throughout their working years and through retirement.

The research is presented in the format of a fictitious script proposal for a web-based show, "The Millennials," which follows a cast of millennials with different income levels. Sometimes everything goes according to plan and sometimes negative shocks occur, which affect their ability to save, including turbulent markets, widowhood, health problems, job loss, lack of access to a 401(k) and/or employer match, retirement policy changes and other unforeseen life events. Key findings include:




    --  Today's millennials are highly educated, but face headwinds in terms of
        student debt, global competition for the best jobs, below-trend wage
        growth and rising pressure on the federal government to curtail the
        entitlements they currently and will eventually receive.


    --  Millennials are often inclined to hold more cash than prior generations,
        are less likely to marry or own a home, and will increasingly finance
        their own retirements due to declining availability of defined benefit
        pension plans. Given rising life expectancies, their retirements may be
        longer than their working years.


    --  More than three-quarters of adults in their 50s experience job layoffs,
        widowhood, divorce, new health problems or the onset of frailty among
        parents or in-laws, all of which disrupt their ability to save.
    --  The good news: the financial tools needed to deal with these challenges
        are within reach, provided that millennials use them early enough.  How
        can median-income millennials do it? It starts with a plan to put 4%-9%
        of pre-tax income into retirement accounts each year, starting by age
        25. For affluent millennials, the range would be 9%-14%; and for high
        net worth millennials, 14%-18%. The rest of the plan is based on
        additional savings from after-tax income, employer-matching
        contributions and consistent investment discipline.

"There are many factors involved in depicting these journeys. Some, like family emergencies, and home prices, are outside the control of our millennials, while others, like after-tax saving and spending habits, are completely within their control," said Michael Cembalest. "As we follow them on this journey, their lifestyle choices and the unpredictable forces of financial markets and government policy collide to tell the story of their financial lives, which is more often than not characterized by both triumph and tragedy."

"The way we present these findings is designed to help millennials, as well as their financial advisors, employers and parents, gain a greater understanding of the drivers of financial security in today's rapidly changing world that millennials will inherit," continued Katherine Roy. "Whatever their household income level - median, affluent or high net worth - optimizing 401(k) contributions and after-tax savings, combined with prudent and consistent investing, will help millennials meet their retirement challenge."

To view the full J.P. Morgan Asset Management Retirement Insights paper "The Millennials - Now streaming: the millennial journey from saving to retirement" please visit www.jpmorgan.com/millennials.

About J.P. Morgan Asset Management
 J.P. Morgan Asset Management, with assets under management of $1.8 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 $2.4 trillion and operations in more than 60 countries. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co. and its affiliates worldwide.

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SOURCE J.P. Morgan Asset Management