Singapore, 01 Dec 2022 - DBS Bank (DBS) and J.P. Morgan Asset Management (JPMAM) today announced an exclusive multi-year Memorandum of Understanding (MOU) to leverage digital technologies to co-develop a personalised end-to-end retirement proposition for all five million DBS/POSB customers in Singapore. This will comprise an individualised retirement glidepath portfolio[1] that would be integrated into the bank’s AI-powered digital advisory tool DBS NAV Planner, so that customers can retire well by optimising their drawdowns of savings, investments and other retirement benefits wisely in real time.Singapore’s population continues to age rapidly, with one in four Singaporeans expected to be 65 years or older by 2030[2] . Amid rising inflation rates, compounded by other factors such as rising healthcare costs, the ability to retire well is a foremost concern for most. While many are familiar with the concept of investing to accumulate wealth, there is a pressing need to help customers learn to draw down on their retirement nest-egg systematically (i.e., decumulate) while still optimising idle funds for investment, and in a timeframe that reflects their true retirement journey.
The DBS-JPMAM partnership seeks to close this gap by creating an industry-first proposition that fuses JPMAM’s expertise in building personalised retirement glidepath model portfolios with existing capabilities in DBS NAV Planner’s “Map Your Money” function[3] . Together, it will take into consideration customers’ current assets and retirement needs/goals to chart a personalised retirement plan, and manage this dynamically as they progress through life:
Based on data of customers’ current assets, DBS NAV Planner’s “Map Your Money” function will assess their retirement adequacy and project their future needs. It will also identify the shortfalls and shed light on how to bridge these, in order for customers to achieve their preferred retirement lifestyle. A personalised glidepath-based retirement portfolio solution will then be generated for customers to consider investing in. They will also be able to visualise the impact of the glidepath solution on their retirement plans. Customers will be able to monitor the portfolio solution’s performance digitally at all times. They are also empowered to adjust their investment preferences (e.g. retirement drawdown amount, frequency) along the way should circumstances change. The glidepath-based retirement solution helps ensure that customers stay optimally invested throughout both good and bad times. Upon their retirement, customers can also draw down on their fund systematically with ease, while keeping the rest of it invested. The regular and tailored payouts from this retirement investment portfolio is specifically structured to complement government schemes like CPF and Supplementary Retirement Scheme (SRS), as well as other income flows (e.g. insurance or rental income), to build a system of diversified, predictable cash flows for a sustainable retirement plan. DBS/POSB customers can expect the proposition to launch in Q3 next year.
Jeremy Soo, Head of Consumer Banking Group (Singapore), DBS Bank , said: “To mitigate longevity and inflation concerns, we need to have a holistic view of our cash flow projections and clarity on how they can be systematically paid out during retirement. This enables us to avoid two possible extremes – underspending, which impacts quality of life during retirement, and overspending, which could lead to us outliving our nest egg. At DBS, we’re committed to continually innovating and providing our customers with best-in-class solutions and are excited to be partnering JPMAM on the development of this industry-first retirement proposition. It is our hope that this will empower our customers to build a more robust and resilient financial future in their golden years, whilst keeping the entire process seamless and hassle-free.”
Sherene Ban, Singapore and South East Asia CEO, J.P. Morgan Asset Management , said: “We are thrilled to be partnering with DBS and bringing our global retirement capabilities to Singapore investors through DBS’ well-established distribution network. While Singapore has one of the most developed national retirement systems in Asia, it is predominantly reliant on the Central Provident Fund (CPF) scheme. Private retirement solutions could play a significant role in completing and optimising the nation’s retirement landscape. We look forward to tailoring our global retirement solutions to contribute to Singapore’s private retirement buildout and help Singaporeans achieve their financial well-being goals.”
Launching in Q3 2023, the regular and tailored payouts from this retirement investment portfolio is structured to complement government scheme and other income flows for a sustainable retirement plan
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[1] Concise definition of glidepath model portfolio: A glidepath portfolio approach would have a higher allocation to equity securities in the early part of a customer’s life cycle and it gradually declines as retirement approaches and remains at that level through retirement.
[2] Singstat study
[3] "Map Your Money" projects customers’ future retirement needs based on their current assets, automatically taking into consideration varied factors such as cashflows, income, lifespan, CPF, SRS rules and schemes.
About DBS DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.World’s Best Bank ” by Global Finance, “World’s Best Bank ” by Euromoney and “Global Bank of the Year ” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank ” by Euromoney and the world’s “Most Innovative in Digital Banking ” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia “ award by Global Finance for 14 consecutive years from 2009 to 2022.
DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting social enterprises: businesses with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping communities with future-ready skills and building food resilience.www.dbs.com .
About J.P. Morgan Asset Management
J.P. Morgan Asset Management, with assets under management of USD 2.3 trillion (as of September 30, 2022), 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) is a leading financial services firm based in the United States of America (“U.S.”), with operations worldwide. JPMorgan Chase had USD 3.8 trillion in assets and USD 288 billion in stockholders’ equity as of September 30, 2022. 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
