asterisk2a + pensioner   3

Here's Why All Pension Funds Are Doomed, Doomed, Doomed
Given that both The Economist and The Wall Street Journal have covered the impossibility of pension funds achieving their expected returns, this reality cannot be a surprise to anyone in a leadership role. [...] Here's problem #1 in a nutshell: the average public pension fund still expects to earn an average annual return of 7.69%, year after year, decade after decade.

This is roughly triple the nominal (not adjusted for inflation) yield on a 30-year Treasury bond (about 2.65%). The only way any fund manager can earn 7.7% or more in a low-yield environment is to make extremely high risk bets that consistently pay off. //&! Millennials are first gen to have earned less in their 20's than previous gens. - bit.ly/2a9M98K
ZIRP  NIRP  QE  unintended  consequences  pension  obligation  triple-lock  pension  babyboomers  Baby  Boomers  demographic  bubble  ageing  population  hunt  for  yield  life  insurance  insurance  industry  monetary  policy  Helicopter  Money  monetary  theory  bond  bubble  Richard  Koo  liquidity  trap  economic  history  recovery  Fed  BOE  ECB  Abenomics  western  world  Japan  BOJ  pension  fund  Beton  Gold  Betongold  property  bubble  asset  allocation  funds  allocation  asset  bubble  Pensioner  pension  scheme  secular  stagnation  austerity  deflation  deflationary  Confidence  Fairy  IMF  OECD  credit  boom  credit  bubble  New  Normal  Great  Moderation  economic  harm  economic  damage  reflate  reflation  equity  bubble  distortion 
july 2016 by asterisk2a
Annuity rates 'in freefall' since EU vote
Rates have fallen by 3.5% in the two weeks since 24 June, said Tom McPhail, head of retirement policy at Hargreaves Lansdown.
Before the vote, a 65 year-old with savings of £100,000 would have been able to buy an annual income of £5,069.
Now the value of that pension has dropped to £4,890, a new record low.
Experts had predicted just such a development before the referendum, yet a majority of people over the age of 60 voted to leave the European Union.
pension  fund  Pensioner  pension  pension  scheme  pension  obligation  demographic  bubble  Baby  Boomers  babyboomers  Brexit  secular  stagnation  ZIRP  NIRP  QE  recovery  GFC  austerity  recession 
july 2016 by asterisk2a
Old-age benefits can’t be sacrosanct for ever | David Brindle | Society | The Guardian
Older people’s charity Independent Age is doing just that. In a bold move, it has broken ranks with the wider pensioner lobby, sticking its head above the parapet to call for a debate on the continuation of universal age-related benefits. There is, it says, “a case to be made for using the tax system to remove benefits such as winter fuel payment from the wealthiest pensioners who pay the higher rate of income tax”. The idea itself is hardly novel: the Barker commission set up by the King’s Fund thinktank said last year that it should be considered in a rethink of health and social care funding[.] //&! bit.ly/1QR2BFj - Scrap triple lock that protects state pensions, says thinktank chief. Paul Johnson, head of the IFS, says today’s pensioners have fared extraordinarily well relative to their predecessors [...] OBR [this policy will become unsustainable]. [austerity] “There is a clear distinction being drawn here, in treatment, between those over, and those below state pension age.”
constituency  budget  deficit  fairness  Generationengerechtigkeit  austerity  babyboomers  Pensioner  Tories  general  election  2015  election  campaign  promises  George  Osborne  general  election  2020  morality  welfare  state  social  safety  net  ageing  population  demographic  bubble  pension  scheme  state  pension  public  pension  pension  obligation  pension  fund  pension 
october 2015 by asterisk2a

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