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A well written article from Financial Times discussing the retirement funding gap in aggregate terms and the macro level gaps - Global retirement crisis is main threat to investment industry, warn chiefs
Sorry - I did not realize it was subscription only. My apologies! I saw it in my Google News - and it opened right up. I do not subscribe to the FT either.
Sorry - I did not realize it was subscription only. My apologies! I saw it in my Google News - and it opened right up. I do not subscribe to the FT either.
Thanks for the feedback! I was able to find it in another way, and can at least get the information you read.
we can't access the link but meh , likely same old news anyway .
Your response pretty much sums it up.
People living longer
people retiring younger
People saving inadequately
Low interest rates for the past 10 years got some of the blame in the article, but there are a multitude of investment vehicles other than bonds and CD's which could have been used.
As a society we need to address the SSA shortfall caused in part by declining birth rates and rising life expectancy. Government provided fully funded retirements for all can only exist if sufficient taxes are collected early to fund them. A person can either save for their own retirement, or have sufficient taxes collected to fund their retirement. There is no such thing as a free lunch.
A number of my co-workers are convinced that S&P 500 funds are the only thing they need for the rest of their lives. A comment that truly frightens me as they have apparently forgotten what happened to the S&P 500 during the last recession. A S&P 500 Fund has worked fine as a "Set It and Forget It" investment for the past decade but time will eventually run out on this philosophy. I can only hope my co-workers see the handwriting on the wall early.
low interest rates made bonds a wonderful investment the last decade . all people had to do was pay attention .
the fed did everything but drop leaflets from helicopters telling people not to sit in cash instruments .
those low rates meant little to most americans since most live hand to mouth anyway. they have little savings to get interest on . they were far better served by lower rates on cars , mortgages and credit cards .
those with assets who paid attention made lots of money in other assets . so again low rates helped not hurt most .
The article suggests it is the responsibility of the financial industry along with others to solve the problem. I say no, they are a vehicle for others to perhaps use to solve the problem but the onus is not on them to figure it out. Yes, if they can make a profit as that is what they are in business for go for it. But not at the expense of other investors.
If they don't, the failure is not theirs.
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