Home | Business News | Browse by Publication | B | Business Wire

U.S. Pensions Study: Retirement Preparedness of Baby Boomers in Wake of Global Financial Crisis.

Article Excerpt
MUNICH -- A new report from Allianz Global Investors AG (AllianzGI), one of the world's largest asset management companies, provides insight into the effects of the recent financial crisis on U.S. wealth and the transition process that the U.S. retirement landscape is undergoing. The study, "Retirement at Risk: Challenges for baby boomers approaching retirement," examines the retirement preparedness of baby boomers who have seen their assets deteriorate as they approach retirement. The study also highlights the impact that retiring baby boomers - the largest population segment in American history - will have on the financial services industry.

Nearly $9 trillion of private household financial assets has been wiped out by one of the most devastating financial crises in history1. Those on the verge of retirement have been most affected by the crisis, as almost half of these losses have occurred in retirement accounts2. Due to the shift toward self-directed pension plans, investors are increasingly suffering the consequences of adverse market movements. With 401(k)s and IRAs becoming the dominate retirement savings vehicle in the United States, the priority is now shifting to investment strategies which generate a sustainable retirement income stream from accumulated funds.

Brigitte Miksa, Head of International Pensions at AllianzGI, says, "The recent economic crisis has demonstrated the vulnerability...

View this article FREE - Now for a Limited Time, try Goliath Business News
Free for 3 Days!