Fewer workers supporting increasing numbers of retirees - that's just one factor of many that emerges from a discouraging report out earlier this month from Natixis Global Asset Management, surveying retirement security internationally. Turns out the U.S. ranks 14 out of 43 countries surveyed in the Natixis report, which weighs in at 67 pages. Factors cited in this middling rating include high levels of public indebtedness and rising tax burdens, suggesting what should be the obvious point (though seemingly not so to voters) that sound public finances are a precondition to individual retirement security. Here's a quote:
…rising expenses in the long term seem inevitable as more baby boomers reach retirement age. This will increase Medicare expenditures, which already constitute close to a fifth of the federal budget.
(To arrive at a fifth, they must be including Affordable Care Act subsidies, Medicaid and other healthcare-related expenditures.)
To all this one could add that Americans save too little, often lack access to pensions and depend on a Social Security system that is insecurely financed. I suspect it is this picture of insecurity that at some levels drives many readers to Seeking Alpha.
Your thoughts, as always, are welcome in the comments section.
Here are today's advisor-related links:
- Aberdeen Asset Management uses multifaceted "Rubin's vase" metaphor to show there are different sides to every investing story.
- Jesse Felder: for 50 years, we've never seen a profits decline of this magnitude without at least a 20% fall in stock prices.
- Ian Bezek: fund managers are having a tough time in a market where valuations seem not to matter.
- American Funds: six steps to keeping cool in this hot market summer.
- Jeffrey Snider: GDP, correctly calculated, should confirm continuing depression.
- James Picerno: don't make too much of restaurant slump indicator of coming recession.
- Rodney Johnson: will central bankers admit their errors or double- or triple-down through helicopter money?
- New contributor Joshua Kaplan notes the irony that growth is the new safety trade.