Home Les bulletins GEAB GEAB 142 Special report – Pensions: an inevitable paradigm shift

GEAB 142

The monthly bulletin of LEAP (European Laboratory of Political Anticipation) - 15 Feb 2020

Special report – Pensions: an inevitable paradigm shift

For the last ten years we have been told that, while the world economy took a hit during the Global Financial Crisis (GFC) of 2008/9, it is now recovering well. Mario Draghi did his magic, the Fed saved the day and American securities, in particular, are now going from strength to strength. Climbing well above their 2007 highs, the New York Dow and S&P500 have shored up any investment fund deficits and secured the capitalist promises of comfort and security for the retiring baby boomer generation. However, while that may be true for many wealthier investors in the USA, it is not the whole story. Many who were once considered the middle classes of Europe and across the democratic west are now facing a new decade of uncertainty as negative bond yields have hollowed out the foundations beneath many national, corporate and private pension provisions.

We must now ask if the recent search for yield and the growth in index funds achieved anything more than building a new house of cards? One that, in time, will undermine the very security that our pensions were intended to provide. If so, then can we see this as an opportunity to re-evaluate our expectations for old age – to innovate and bring in change?

Taking a step back, pausing to see the bigger picture, leads us to anticipate that the coming year will, in fact, be possibly seen as the last “hurrah” of the present retirement paradigm. Assaulted on all sides by declining investment income, fiscal deficits, populist revolts and waning immigration, western economies will be forced to revisit the whole concept of retirement. It is possible that we are on the verge of a much-needed transition towards a flexible, yet perhaps uncertain, future for our ageing populations.

Comments

To leave a comment sign up now
In summary

With the neologism futuritis, we wish to denote a disease of the future – a disease whose development process begins with a deficiency, followed by an eruption and ending with [...]

Oil/Libya: War or US shale collapse? In Libya, General Haftar, mainly supported by the Americans, is not giving up. The reason is simple: he is acting under orders to block [...]

Gold: ready to shine even brighter? 2019 was a big year in Precious Metals (PMs). After two years of declining prices following the 2016 peak, a floor was reached around [...]

Related articles
Geta Grama-Moldovan
15 Jan 2021

Political Recommendation – In the Face of Obscurantism/Collapse of Civilisation, the Only Defence is Reconnecting Citizens with their Leaders

#geopolitics #politics #society

One of the main points of instability in the reformed system emerging today is how out of touch leaders are. This year, we’ve scraped the barrel and it’s undermining all [...]

Geta Grama-Moldovan
15 Jan 2021

Agriculture 3.0: Business and Investment Opportunities

#agriculture #finance #innovation #investments

As we have already stated in various issues of the GEAB, agriculture as we know it is undergoing remarkable change. While we often see farming as a rural, analogue activity, [...]

Geta Grama-Moldovan
15 Jan 2021

2022: Strengthening the Franco-British European Defence Pivot

#defence #geopolitics #governance #NATO

The post-election statement made by German Defence Minister Annegret Kramp-Karrenbauer ("The idea of European strategic independence goes too far if it nurtures the illusion that we can ensure Europe’s security, [...]