A set of 7 sample slides that accompanies the full report "Forecast 2010: Navigating Retirement Unknowns, and charting a course anyway."

1. Forecast 2010:
Navigating retirement
unknowns
And charting a course anyway
a retirement Security Institute report
february 2010
www.retirementsecurityinstitute.com
Tuesday, February 23, 2010

2. prelude to
retirement forecast
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Tuesday, February 23, 2010

3. prelude
• China, one of our largest foreign creditors,
expressed public chagrin at the U.S.’s fiscal
mess for the first time.
• Returns on retirement portfolios were rising
on the back of easy credit, thus leading to
more debt.
• The clean up continues, and will for many
years, especially for those losing livelihoods or
irreplaceable investments.
www.retirementsecurityinstitute.com
Tuesday, February 23, 2010

4. Economic Climate
• The federal debt ratio to GDP is around
84%, up from 41% in 2008.
• Experts say a tipping point is at the 90%
mark, where debt servicing chips away
at growth.
www.retirementsecurityinstitute.com
Tuesday, February 23, 2010

5. Economic
Climate
With a population aging
more rapidly than the
U.S.’s, Japan saw savings
rates decline from 10%
in the 1990s to 2.2% in
2007. U.S. rates were
nearly zero in 2007. In
2009, after the largest
financial crisis since
the depression,
Americans began saving
more seriously, to a high
of 6.0% in 2009.
www.retirementsecurityinstitute.com
Tuesday, February 23, 2010

6. demographics
• Because of longevity prospects, Social
Security benefits will be delayed to age
67 for those born in 1960.
• Late-period Boomers, Gens X and Y will
receive lower replacement incomes than
current retirees and older Boomers set
to retire.
www.retirementsecurityinstitute.com
Tuesday, February 23, 2010

7. Parsing the Crisis
New Evidence from research
• There was a flight to quality
effect where large cap stocks
served the role of an
insurance policy.
• Owning an asset that is more
liquid like a large cap stock
such as GE acts as a liquidity
hedge during a downturn.
• Small cap stocks proved less
liquid, and their activity
dropped 40% during the
height of the crisis.
www.retirementsecurityinstitute.com
Tuesday, February 23, 2010