JPMorgan Retirement Plan Services 401(K) Quiz Reveals Need For Knowledge, Time and Interest by Investors

    NEW YORK, April 4 /PRNewswire/ -- JPMorgan Retirement Plan Services'
 401(k) Quiz, a national poll measuring consumer knowledge of defined
 contribution plans, reveals an overall lack of engagement by participants
 effectively planning for their retirement.  Most significantly only 4% of
 participants could rank four investments from the most conservative to the
 most aggressive (stable value fund, bond fund, growth fund, company stock).
 Only 16% of the random group was able to point out that the Stable Value Fund
 has the least amount of risk.
 
     The JPMorgan Retirement Plan Services Quiz also asked consumers the
 following questions:
 
     Question                  Answer                           % that answered
                                                                correctly
 
     1. Where did the term      The section of the IRS tax code       47%
        401(k) come from?       that outlines this type
                                of program
     2. You can contribute      True                                  75%
        to both a 401(k) plan
        and an IRA in the
        same tax year.
 
     3. Which one of the        16% service charge paid               38%
        following is NOT        to the employer
        a consequence of
        taking cash
        distribution from a
        401(k) plan before
        reaching retirement
        age?
 
     4. Investment experts      Investing too conservatively,         28%
        generally cite which    that is, not including enough
        of the following as     of their retirement assets
        one of the biggest      in growth vehicles such
        mistakes made by 401(k) as stock investments
        plan participants?
 
     5. When you change jobs,   Roll it over to an IRA;               69%
        you can do the          leave it in your former employer's
        following with your     plan as long as the balance is more
        401(k) balance:         than $5,000; move it to your new
                                employer's plan
 
     6. Who is ultimately       The participant                       75%
        responsible for making
        401(k) investment
        decisions?
 
     7. Please rank the         Stable value fund, Bond fund,          4%
        investments below       Growth fund, Company stock
        from most conservative
        to most aggressive:
 
     8. Which of the following  Penalty-free withdrawals are          63%
        is not a benefit of a   always allowed for educational
        401(k) plan?            expenses
 
     9. Generally, how much     70% of your annual income             52%
        will you need each
        year to live
        comfortably in
        retirement?
 
     10. You should             When your investment goals or         47%
         reallocate your        time horizon have changed: to keep
         investments:           your overall asset allocation
                                balanced appropriately
 
     "The results of our 401(k) Pop Quiz point to a serious lack of knowledge,
 time and interest preventing plan participants from achieving their retirement
 goals," says Melissa Hooker, managing director and head of client service for
 JPMorgan Retirement Plan Services.  "We remain committed to offering
 personalized services to address the individual needs of every participant,
 which is the cornerstone of our Audience of One philosophy.  By helping each
 plan participant realize how they want to spend their retirement, they can
 take actionable steps to attain the lifestyle they have worked towards and
 deserve."
     The study was conducted by Cambridge Brand Analytics, a division of
 Phoenix Marketing International, and results are based on responses from a
 national sample of 300 participants in employer-sponsored retirement plans.
 All participants are the primary or joint decision-maker on household
 investments and are over the age of 18.
 
     * The study was conducted in August, 2004.
 
     About JPMorgan Retirement Plan Services
     JPMorgan Retirement Plan Services provides bundled defined contribution
 services and administers investment options to 170 corporate clients,
 representing more than 904,000 retirement plan participants. The business unit
 administers plan assets of $57.7 billion. Through alliances with other best-
 in-class providers, JPMorgan Retirement Plan Services integrates services for
 defined contribution, defined benefit, deferred compensation and stock-based
 compensation plans.  Its client list includes top-tier firms such as Procter &
 Gamble, International Paper and Newell Rubbermaid. The organization was
 founded in 1998 and initially operated as a strategic alliance between
 JPMorgan and American Century Investments.  On June 1, 2003, JPMorgan acquired
 the firm, which employs more than 700 people and is headquartered in Kansas
 City, MO.
 
 

SOURCE  JPMorgan Retirement Plan Services