Product Type: Market Research Report
Published by: TowerGroup
Published: August 2006
Product Code: R301-1163Description In July 2006, the US Government Accountability Office (GAO) published a report titled "Baby Boom Generation: Retirement of Baby Boomers Is Unlikely to Precipitate Dramatic Decline in Market Returns, but Broader Risks Threaten Retirement Security." Though the report is timely,it does not effectively link the issues at hand to what individual investors need to do and how financial services institutions can help them. This Research Note offers TowerGroup's perspectives in response to the GAO report and analyzes how particular findings will affect the financial industry.Table of Contents
- TowerGroup Take-Aways
- Report Coverage
- Background
- The Unique Needs of Retiring Baby Boomers
- Correcting Misapprehensions
- Impact on Financial Markets
- Exhibit 1 Distribution of US Baby Boom Generation's Financial Assets by Wealth Percentile (2004)
- Exhibit 2 US Retirement Asset Distributions by Retirement Savings Plan Type (2004 and 2010)
- Inheritance
- Exhibit 3 Percentage of US Birth Cohort Receiving an Inheritance (1995-2004)
- Ability to Save
- Employment after 65
- Comparing Financial Circumstances of the Generations
- Simulating Unprecedented Scenarios
- Exhibit 4 Sources of Stock Market Return Variation (1948-2004)
- Mitigating the Strain of Future Retirees on Financial Markets
- Summary
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