11 Oct Our Retirement Funds are Collapsing
The world’s retirement funds are in big trouble.
According to the ICI – Investment Company Institute, the U.S. Retirement Market hit a new record of $26.1 trillion in the first quarter of 2017.
See the graph below:
Regrettably, Americans have no idea that their monthly retirement contributions are not being saved or stored in a nice gold vault, rather these funds are being used to pay the lucky people who retired before them.
A recent article on News24 highlights this problem in South Africa.
The graph below clearly shows that the net contributions are far less than the total payouts. This means that these retirement funds are bankrupt. In a number of years from now, there will not be enough money to pay out pensions. This will severely affect the younger generation (under 40). Many of the younger generation are rather investing their 401k into the absurdly high stock markets. The longer lifespan of modern man is causing havoc in the pension fund schemes as their business models did not expect people to live as long as they currently are.
Take a good look at the red total disbursement payout graph versus the green net contributions bars.
I find it highly suspicious that the last time The Investment Institute published figures was in 2014. I wonder why!
It is a very good idea to put some money into precious metals as a protection against the falling IRA prospect in the years to come.
To see the full report click this link Pension Fund Collapse.