J.P. Morgan Asset Management Survey Reveals Plan Sponsors' Commitment to Proactive Retirement Strategies and Financial Wellness Programs

83% of plan sponsors feel a strong responsibility for employees' financial well-being

NEW YORK, June 25, 2025 /PRNewswire/ -- J.P. Morgan Asset Management today released its sixth U.S. defined contribution (DC) plan sponsor survey findings, highlighting a growing commitment among plan sponsors to enhancing retirement outcomes and equipping participants with essential financial tools. This year's research, Scaling what works, shaping what's next, captures insights from 750 U.S. plan sponsors, providing a comprehensive snapshot of their perspectives and actions in refining retirement offerings. Plan sponsors are increasingly expanding financial wellness initiatives and developing innovative retirement income decumulation strategies, demonstrating increased engagement in supporting employees.

The survey highlights how generational differences within workforces influence plan sponsors in addressing the unique needs of Gen X, Millennials, and Gen Z, each offering distinct perspectives on retirement planning. Notably, only 22% of plan sponsors with a significant Gen X employee base express strong confidence that their employees are saving adequately for retirement. This underscores the need for targeted strategies to support Gen X, especially as they near retirement.

"Our 2025 Plan Sponsor Survey highlights a shift in retirement planning with plan sponsors recognizing the need for proactive strategies to enhance participant outcomes," said Alyson Frost, Head of Retirement Insights at J.P. Morgan Asset Management. "The findings emphasize the important role of financial wellness programs in boosting employee productivity and engagement. Plan sponsors are committed to providing the necessary tools and education for long-term financial security, and we anticipate further adoption of innovative strategies to meet the diverse needs of today's workforce."

Key Findings

• Commitment to Financial Wellness: Over 80% of plan sponsors acknowledge their role in supporting employee financial wellness, with many expanding benefits accordingly. However, critical programs, such as emergency savings, student loan debt assistance and debt management benefits, remain under-implemented, particularly among smaller employers.
  
  
  
  
• Proactive Plan Design: Nearly half (49%) of respondents now favor a proactive approach to plan design reporting higher satisfaction across key measures, including participation and contribution rates, investment performance and participation education quality. Despite this progress, there is still opportunity to continue to increase contribution percentages and participant engagement.
  
  
  
  
• Expanding Responsibilities: Plan sponsors face growing responsibilities, highlighting a need for more education. Over half are unaware of their fiduciary roles, and one-third lacking understanding of their target date funds (TDFs), despite their widespread use. Nearly 80% believe their plans should generate retirement income, with 61% considering adding in-plan income options this year.

Action Steps for Plan Sponsors

To maximize the effectiveness of their offering, plan sponsors should consider embracing proactive plan design strategies that cater to the diverse needs of a multi-generational workforce, including leveraging automatic features and investment defaults to enhance participant engagement and satisfaction. As retirement income solutions become increasingly central to DC plans, plan sponsors are encouraged to establish clear objectives for in-plan solutions, carefully assessing which products best align with their goals and participant demographics to meet the growing demand for income-generating investments.

Enhancing participant education and communication is also crucial, as fewer than half of respondents express high satisfaction with their providers' efforts in this area. By streamlining the participant experience through seamless integration of educational resources and robust communication strategies, plan sponsors can empower participants to make informed decisions, particularly during critical phases such as onboarding and retirement preparation.

"Our survey highlights the importance for plan sponsors to refine their offerings by embracing thoughtful design and making strategic investments, which can greatly enhance participants' retirement readiness," said Meghan Conklin, Vice President, Retirement Insights, at J.P. Morgan Asset Management. "Understanding how regulatory advancements, such as SECURE 2.0, can be leveraged effectively in plan design is crucial, ensuring that options not only complement but also adapt to a more modern workforce."

For more information about the survey findings, please visit the DC Plan Sponsor Survey Findings dedicated website.

Methodology

From January 7 through January 31, 2025, we partnered with Greenwald Research, a market research firm based in Washington, D.C., to conduct an online survey of 750 plan sponsors. All respondents are key decision-makers for their organizations' DC plan. All organizations represented have been in business for at least three years and offer a 401(k), 403(b) or 457 plan to their domestic U.S. employees. Results aggregated across plan size categories were weighted to reflect the size distribution of plans in the U.S. DC universe.

About J.P. Morgan Asset Management

J.P. Morgan Asset Management, with assets under management of $3.7 trillion (as of 3/31/2025), is a global leader in investment management. J.P. Morgan Asset Management's clients include institutions, retail investors and high net worth individuals in every major market throughout the world. J.P. Morgan Asset Management offers global investment management in equities, fixed income, real estate, hedge funds, private equity and liquidity. For more information, visit: www.jpmorgan.com/am.

JPMorgan Chase & Co. (NYSE: JPM) is a leading financial services firm based in the United States of America ("U.S."), with operations worldwide. JPMorganChase had $4.4 trillion in assets and $351 billion in stockholders' equity (as of 3/31/2025). The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers in the U.S., and many of the world's most prominent corporate, institutional and government clients globally. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

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SOURCE J.P. Morgan Asset Management