About Pendragon and what we do
About the people at Pendragon
About our electronic information service
Pensions Surveys
How to contact us
Pendragon home page

Your one point of access to surveys, research and reports for the Pensions Professional

Searching for: researcher is "the great retirement experiment website"

Results 1 of 1.

Adding up $44 trillion of boomer wealth expectations
Adding up $44 trillion of boomer wealth expectations
The Great Retirement Experiment Website
Oct 2006 United States Savings, Investment - General, Countries - US
According to research on the long-term implications of baby boom retirement plans from The Great Retirement Experiment, just over 50 million boomers have retirement accounts and/or pensions. Total investments in accounts dedicated for boomer retirements was $6.1 trillion, including IRAs, Keoghs and pensions. total expectations for retirement investment wealth for all 50 million boomer retirement investors were calculated to be $44 trillion. The present value cost of those wealth expectations (at 3% inflation) is over $22 trillion, almost twice (180%) the size of the current annual national economy. Even if those wealth expectations are met in full, the sum of all boomer pension and retirement account income (in current dollars) will replace only 45% of the total income for all 77 million boomers, meaning a shortfall of 55% for the entire generation, that will have to be made up from other sources. The amount of paper wealth expected to be cashed out for real goods and services by boomers will build year by year, as more boomers retire each year, until it reaches a peak of $2.3 trillion per year by 2027. The inflation adjusted annual cost of cashing out those wealth expectations will peak at $1.3 trillion per year in 2027 – about 2.5 times as large as the current annual cost of Social Security.

More details are generally available exclusively to subscribers of Perspective, the electronic pensions legal & regulatory information and news service. To read the summary, subscribers should launch Perspective and navigate via the Table of Documents to PensionSurveys >> Oct 2006 or click here (this link will not work in all circumstances). For further information about Perspective click here.

8A3520B0   Click here to contact the authors.
 

Results 1 of 1.