Shane Brett Beverly Chandler, Opalesque London: In his latest white paper, Shane Brett of hedge fund consultancy firm Global Perspectives looks at the subject of Asset management & the future Global Pension Crisis, and how alternatives can help fill the gap.
Brett opens with a quote from The New York Times from 2010. "Prichard is the future, weï¿½re all on the same conveyor belt. Prichard is just a little further down the road" Michael Aguirre wrote at the time.
Back in 2009 the small Alabama city of Prichard, outside Mobile became the first city in America to stop paying pensions to its retired workers. It actively chose, despite State court orders to the contrary, to put funding into services such as hospitals, street lights and teachersï¿½ salaries. The result has been that it could not fund the cityï¿½s pension liabilities and many affected retirees have now filed for bankruptcy or been forced back to work.
Brett says: "This is the future across the developed world". While private sector workers have known for some time that they are responsible for paying for their own futures lives in retirement, Brett says: "The big change over the next couple of decades will be in the public sector.
This will be the inability of rich world governments to fund their public sector employee pensions."
Further troubles lie with the ageing populations across Europe. "The German economy m......................
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