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Life expectancy and pension shortfall

GTM – U.S.

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Probability of reaching ages 80 and 90

Mandatory and voluntary savings by country

Persons aged 65, by gender, and combined couple

Contribution to pre-retirement income replacement goal of 80%

100%

100%

Men 90%

Voluntary savings

90%

Women Couple – at least one lives to specified age

80%

Mandatory savings & government pensions Gap

80%

73% 70% 63%

60%

60% 50%

33%

29%

49%

91%

13%

40%

82%

30%

70%

40% 34%

30% 20%

20%

45% 38%

37%

35%

Japan

Italy

Spain

France

Canada

Australia

Source: J.P. Morgan Asset Management; (Left) SSA 2014 Life Tables; (Right) OECD Pensions at a Glance 2015. Mandatory savings & government pensions is the total public pension or forced savings in defined contribution plans; Voluntary savings is defined contribution savings by employers and employees; Gap is the savings shortfall assuming a desired pre-retirement income replacement rate of 80%. Pre-retirement income replacement is calculated for the average earning worker who is assumed to have worked a full career, defined as entering the labor market at age 20 and working until the normal pension age within each country. Guide to the Markets – U.S. Data are as of August 31, 2017.

Germany

90 years

Netherlands

80 years

UK

0%

0%

61

35%

22%

10%

U.S.

Investing principles

22%

55%


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