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Pensioners In Europe: Kiss Retirement Goodbye?

Saturday, August 4, 2012 - 4:22 PM
The transfer of responsibility for retirement planning from the state to the individual has left policymakers in Europe and the United States free to prioritize quick economic gain over long-term growth, catching thousands of pension savers in the crossfire. While cuts in pensions paid to teachers, police and health workers across the indebted euro zone dominate the headlines, many private sector savers have failed to grasp the more subtle link between central bank policy and their dwindling wealth. Lower interest rates earn savers less on their money, while an increase in the currency in circulation promotes inflationary pressures, reducing the purchasing power of that cash over time. In the meantime, because pensioners are living longer, the gap between the income they need and the total returns generated by the assets in their funds continues to widen.
ShorebreakShorebreak2,674 posts since
Apr 6, 2010
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