Pioneering Participant Communications Program Delivers Results with New Innovations

NEW YORK, March 11, 2014 /PRNewswire/ -- J.P. Morgan Retirement Plan Services has unveiled major advances to its groundbreaking and popular Audience of One^® experience, making it more interactive, fun and personal.  Among the innovations that promise to deepen engagement with plan participants are an ability to deliver a more personalized experience through tailored messaging, interactive online games, social norming and videos, all of which aim to be a "call to action" for employees to save and invest more effectively for retirement. Furthermore, the new experience also leverages the plan sponsor's communication program to help participants take better advantage of new plan design features, such as automatic enrollment and automatic contribution escalation.

Audience of One was first introduced in the 1990s to encourage participants to take important steps to better prepare for retirement.  By combining participant outreach with extensive research into behavioral finance, Audience of One has been one of the industry's most effective strategies for helping employees reach their retirement goals. J.P. Morgan has received more than 100 industry awards for Audience of One in the last four years alone.

Now, the Audience of One experience has been further upgraded with a number of innovative enhancements, including new persona-based outreach efforts that are tailored to each participant and his or her unique circumstances through multiple facets, including content and call-to-action. It also includes a broader digital experience, such as games that educate and inspire participants to pursue their "retirement dreams" by adopting healthier savings habits.  In the pilot for the program's enhancement, 87% of website visitors played the games and overall engagement—measured by the number of historically disengaged people who went on to review their accounts—increased by 17%.^*

"Audience of One identifies participants who need encouragement to save and invest more wisely," said Greg Walker, Director of Participant Experience with J.P. Morgan's Retirement Plan Services unit. "Messages are highly personalized, actionable, and delivered through multiple channels, whether that is with an interactive game, on the phone, on the Web, face-to-face or by email.  Our aim is to connect with and educate participants about the steps they should take to save and invest more effectively – wherever they are on their financial journey."

Audience of One's enhanced persona-based outreach leverages the firm's deep, data-rich understanding of each participant and his or her peer group, and tailors a message and value proposition targeted to each participant. For example, a 35 year-old male participant with a history of disinterest in retirement planning will be presented with a personalized calculation showing how a relatively small contribution immediately compounds into a much larger account contribution thanks to tax deferral and match.  Conversely, a 55-year old female will be given a specific estimate of her potential post retirement expenses (based on social norming with others in a similar locale making a similar income).  She also receives a custom calculation of what her current retirement plan might supply in retirement and how much that might be improved with a relatively modest increase in savings.  This persona-based strategy resulted in response rates more than twice that of traditional retirement campaigns and an average net increase in annual savings of more than $2,000 per participant.^*

"Overall," said Carol Waddell, Head of Product and Marketing at J.P. Morgan Retirement Plan Services, "Audience of One combines personalized outreach with simple next steps that are proven to increase participants' retirement readiness."

Audience of One's impact on retirement preparedness has been striking.  The average participant exposed to the experience is now on track to receive $22,000 more in retirement income each year compared to 2005.  Even more impressive, there has been a 128% increase in the number of participants on track to receive at least 70% of their pre-retirement income.  

About J.P. Morgan Asset Management – Retirement

J.P. Morgan Asset Management is a leading comprehensive retirement solutions provider dedicated to improving individual retirement outcomes. J.P. Morgan Retirement, with defined contribution assets under management of $109 billion, is a leading comprehensive retirement solutions provider dedicated to improving individual retirement outcomes. J.P. Morgan Retirement Plan Services provides bundled recordkeeping services to more than 650 clients and 2 million plan-level participants, representing more than $167 billion in retirement plan assets (as of December 31, 2013).  

About J.P. Morgan Asset Management

J.P. Morgan Asset Management, with assets under management of $1.6 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.

Assumptions: Income replacement results reflect the experience of participants earning between $14,500 and $10 million annually who were contributing to their retirement plan as of December 31, 2013. Retirement age is 65. If over 62, retirement age would be current age plus three years. Based on information provided for annual salary, state of residence, hire date, date of birth and gender. If not provided, gender defaults to female. Tax filing status defaults to single if state of residency is the same as tax filing state. Includes Social Security, which is calculated based on normal Social Security retirement age, as per federal regulations. The tax-filing income growth rate is 5%. Income growth rate represents the tax-filing increase in salary expected over time, which is the approximate historical rate of growth (including inflation) for a typical person's salary. The projection considers the IRS annual compensation limit, indexed periodically. Contribution amount is based on current election in defined contribution plan. Annual retirement income estimate and initial risk category are calculated using the investments currently held in retirement plan account. Balances from brokerage account(s) or loan(s) not included in forecast. Income replacement calculation includes balances from other plans that are turned on for Retirement Dream Machine.

^* Source: J.P. Morgan Retirement Plan Services proprietary research, July 2013.

Recordkeeping and administrative services for the plan are provided by J.P. Morgan Retirement Plan Services LLC (J.P. Morgan); securities transactions for the plan may be introduced by J.P. Morgan Institutional Investments Inc. (JPMII). Member FINRA/SIPC.  J.P. Morgan and JPMII are affiliates of JPMorgan Chase & Co.

IRS Circular 230 Disclosure: JPMorgan Chase & Co. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with JPMorgan Chase & Co. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.

SOURCE J.P. Morgan Asset Management