Sunday, August 15, 2010

Weak economy and low yields are threat to retirement

by Calculated Risk on 8/15/2010 10:43:00 PM

Here is the summary of last week.

Here is the schedule for this week.


Is the economy threatening retirement plans, or is less spending from those saving for retirement threatening the economy? Probably both ...

This article from the WSJ takes the 2nd view: Another Threat to Economy: Boomers Cutting Back

Low yields present retirees with a difficult choice: Accept the lower income offered by safer bonds, or take the risk of staying in the stock market. Either way, their predicament could put a long-term damper on the consumer spending that typically drives U.S. growth.
...
As of 2008, the latest data available, people aged 65 to 74 were spending 12.3% less than they did ten years earlier, in inflation-adjusted terms.
And the job market is tough for older workers too ...