J.P. Morgan, AIG to offer annuity tool for 401(k) plans
SmartRetirement Plus will pair J.P. Morgan's target-date funds with AIG's IncomEdge Control annuity to meet the needs of plan participants who would like to receive regular monthly income in retirement.
In an effort to meet the needs of 401(k) plan participants who would like regular monthly income in retirement, J.P. Morgan Asset Management will launch what it calls SmartRetirement Plus. The solution will pair the firm’s retirement investment funds and the intelligence it has gathered on retiree spending with AIG Life & Retirement’s IncomEdge Control annuity.
The asset manager plans to expand the annuities offered by third-party insurers through its new tool in the future, it said in a release. A firm launch date wasn’t announced.
SmartRetirement Plus will provide ways to direct retirement savings from J.P. Morgan Asset Management’s target-date funds into an annuity from AIG, along with options to help participants determine when to begin receiving the income. Participants will have the flexibility to make allocation decisions to account for their unique spending needs, while maintaining access to their money, J.P. Morgan said.
Recent plan participant research conducted by the firm found that 85% of participants would likely leave their balances in their plans post-retirement if there was an option to help generate monthly retirement income.
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