Ahead of the Curve covers developments that may impact the behavior and portfolio positioning of institutional investors. Take a closer look at events in the ever-changing regulatory, legislative and investment markets to determine how they may impact you.
The vast majority of Americans think the nationâ€™s retirement system needs to be reformed and government should make it easier for employers to offer pensions, a recent survey found.
Nearly nine out of 10 respondents said the U.S. retirement infrastructure was under stress and needed to be modified. In addition, 83% of respondents said the government should encourage companies to offer retirement plans, and 81% said leaders should make helping Americans achieve a secure retirement a higher priority.
The surveyâ€™s findings, based on 800 telephone interviews, were contained in a report, â€śPensions and Retirement Security 2011: A Roadmap for Policymakers,â€ť released by the National Institute on Retirement Security.
When asked if current economic conditions are impacting their ability to achieve a secure retirement, 84% of respondents said they were concerned; 54% were very concerned. Nearly three-quarters of respondents believe stock market volatility makes it impossible to predict how much money they will have saved by retirement.
More than eight out of 10 respondents said people with pensions are more likely to have a secure retirement. In addition, 75% believe the disappearance of pensions has made it more difficult to achieve the â€śAmerican Dream.â€ť
Americans are taking steps to improve their retirement picture, including saving more, eliminating debt, delaying retirement and/or looking for a job that offers a pension.
For a copy of the report, go to nirsonline.org.
The primary drivers of global economic growth during the next 15 years will be 400 midsize cities in emerging markets. Their contribution to economic output is expected to be more than the developed economies and megacities in emerging markets combined.
New research from the McKinsey Global Institute finds that although middleweight cities in emerging markets were responsible for only 11% of global economic output GDP in 2007, they will represent 37% of the global growth between 2007 and 2025. In contrast, developed economies and megacities in emerging markets (those with populations of 10 million or more) accounted for 73% of global GDP in 2007, but will represent only 34% of global growth through 2025.
The McKinsey research notes companies targeting these markets must research consumer attitudes, map out marketing strategies and even overcome logistical challenges in order to be successful.
To learn more, visit mckinsey.com/mgi.
The Rotman School of Management at the University of Toronto has developed an academic program to help the governing boards of pension funds and other long-term institutional investors address the many challenges they face in the global economy. Keith Ambachtsheer, director of the Rotman International Centre for Pension Management, is the academic director of the new governance program.
â€śThe governance and management of pension and other long-horizon institutions has become increasingly complex as many have grown into financial giants, servicing the investment and administration needs of their many beneficiaries,â€ť he says. Additional information on the program and the application process is available at rotman.utoronto.ca.