“This Is A Crisis Greater Than Any Government Can Handle”: The $400 Trillion Global Retirement Gap

Sunday, October 1, 2017
By Paul Martin

by John Mauldin of Mauldin Economics
Oct 1, 2017

Today we’ll continue to size up the bull market in governmental promises. As we do so, keep an old trader’s slogan in mind: “That which cannot go on forever, won’t.” Or we could say it differently: An unsustainable trend must eventually stop.

Lately I have focused on the trend in US public pension funds, many of which are woefully underfunded and will never be able to pay workers the promised benefits, at least without dumping a huge and unwelcome bill on taxpayers. And since taxpayers are generally voters, it’s not at all clear they will pay that bill.

Readers outside the US might have felt smug and safe reading those stories. There go those Americans again, spending wildly beyond their means. You are correct that, generally speaking, we are not exactly the thriftiest people on Earth. However, if you live outside the US, your country may be more like ours than you think. Today we’ll look at some data that will show you what I mean. This week the spotlight will be on Europe.

First, let me suggest that you read my last letter, “Build Your Economic Storm Shelter Now,” if you missed it. It has some important background for today’s discussiion.

Global Shortfall

I wrote a letter last June titled “Can You Afford to Reach 100?” Your answer may well be “Yes;” but, if so, you are one of the few. The World Economic Forum study I cited in that letter looked at six developed countries (the US, UK, Netherlands, Japan, Australia, and Canada) and two emerging markets (China and India) and found that by 2050 these countries will face a total savings shortfall of $400 trillion. That’s how much more is needed to ensure that future retirees will receive 70% of their working income. This staggering figure doesn’t even include most of Europe.

The Rest…HERE

2 Responses to ““This Is A Crisis Greater Than Any Government Can Handle”: The $400 Trillion Global Retirement Gap”

  1. Carmen

    When Lyndon (the flake) Johnson pulled the social security money out of the trust in 1963 it was the death knell for the S.S. retirement fund. Once it was in the hands of the politicians (house & senate) that money was pissed away as rapidly as possible on pork barrel projects. Much of the money was just STOLEN and went where??? We have no idea.

    Today, if you are not saving for your retirement…you will never retire. No matter what, this country, as well as the rest of the world, is headed for an unparalleled financial collapse. Once this is initiated thru the bank failures there will never again be a time in history that people can be free enough to enjoy retirement.

    The United States admits to being twenty trillion dollars in debt. There is now (per Catherine Austin Fitts) some twenty-one trillion dollars that are ‘unaccounted for’. Add that to the two hundred trillion unfunded liabilities of retirement funds and you have what???

    Want to know what the coming collapse will look like? Puerto Rico, Venezuela, and Zimbabwe are really good examples.

    Get ready ‘folks’ as obozo would say…you ain’t seen nothing yet!

  2. Buckweak

    Lets see.The debt grows faster than job creation. Now the debt instrument are not effective.
    Defaulted student loans and pensions paying out way more than what is being contributed. Now the influx of millions of refugees. Minus plus minus = zero. We are in the collapse now. The false flag will be blamed on North Korea and that will be the final plan.


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