Retirement – From Brutish To A Brouhaha: Shifting Winds And The Demographic Payback

Retirement – From Brutish To A Brouhaha: Shifting Winds And The Demographic Payback by Michael Aked, Research Affiliates Key Points The obvious remedies (e.g., higher taxes, higher savings rates) for the problems related to a rapidly falling worker-to-retiree support ratio are unlikely to be embraced by U.S. constituencies, leaving governments’ and corporations’ abrogation of their pension promises to retirees as the most likely future scenario. Using the more complex lifetime savings models as a guide, we adopt a simple and straightforward model to analyze the impending retiree support problem. Demographic shifts are playing a major role in the current high…