What’s New

Forecast 2010: Navigating Retirement Unknowns
(and charting a course anyway), February 2010

While the stock market has been recovering in one sense, those affected by its steep declines are re-thinking how to re-position themselves to have some semblance of security going forward. The health care system is to be reformed. Companies have retooled, reorganized and reduced to many working people’s detriment.

This latest report seeks to present critical information about the major challenges faced by those planning for retirement. The recent financial crisis rocked years worth of hard-earned assets and best-laid plans. A crisis of confidence now ensues. The report also lays out select expert commentaries on the financial crisis to help people understand its implications for planning going forward; history can serve as a rudder for future action.

Different points of intersection between longevity and retirement issues are noted as well. In past white papers, risk management was a key theme, and we attempt to build on that foundation, but play it all forward. The health care system is looked at through the lens of Medicare and how it can impact retirement expenses.

What have we learned and where are we going? What sorts of issues will impact the fundamentals of retirement security in the future? These are the subject areas under exploration:

• First, fundamentals of the economic climate are addressed along with a financial crisis   primer.
• Section two outlines trends relative to demographics and retirement security.
• Section three pauses to reflect on the financial crisis through a chronology of select
  expert crisis commentary. Essential observations are identified.
• Section four covers select retirement market assets (annuities, target-date funds, etc.)
  with a  financial markets overview as it relates to retirement.
• The fifth section discusses longevity issues and how they impact retirement, including
   some  concepts in planning that may prove helpful.
• Health care is analyzed within a Medicare framework, and for retiree contingency
  planning.
• Last, policy directions and pressure points on the horizon provide some context for future
  scenarios under which to plan.

 

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Presentation to Global Pension Funds, May 2009

In late May, the keynote presentation called “Charting Retirement Security in an Era of Uncertainty” was given at a conference for global pension funds. Trends about the economic climate and its impact on retirement security, demographics, and globalization were addressed. Sustainability issues were discussed in the context of educational gaps, retirement incentives, and upcoming economic pressure points. See a few of the slides or view below.

The presentation in Denver of May 2009 for a global pension funds conference crystallized some views. Whether a large institution, independent advisor, or an upcoming retiree – one thing is common to all – the need to re-think and re-tool plans going forward. The other issue which became clear was the need for a better game plan that includes transparency about funds available relative to promises made owing to demographics and budget realities plus better education about financial and economic basics. Those planning for or approaching retirement need to do their own scenario planning to imagine a variety of economic outlooks.

 

 

 

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