Retirees Can No Longer Afford To Live On Investment-Grade Fixed Income Returns
Market Intellect from Global Markets Intelligence
The GMI group at S&P Capital IQ illustrates the unfortunate consequences imposed on U.S. retirees due to the extended period of exceptionally low bond market yields witnessed over the past seven years the in the wake of the “great recession” and financial crisis of 2008/2009.
- Retirement savings now need to be nearly four times larger than what was required 40 year ago to generate the same level of low-risk inflation-adjusted investment income.
- Low interest rates and weak personal income growth result in inadequate savings and fixed income investment returns that foreshadow inadequate post-retirement income for many households.
- For many senior citizens, a comfortable retirement is just a pipe dream.