US

Watch Out, Retirees Are Going To Live For 30 More Years And Need Way More Money

Larry Zimpleman, Principal Financial Croup Chairman and CEO spoke to CNBC this morning about the impending retirement boom of baby boomers. His firm has $285 billion in assets under management.

What’s interesting about this interview is that it identifies what is going to be a long-term trend for retirees: the need for growth even after retirement. There is, according to Zimpleman, going to be a renewed emphasis on equities for individuals who are already retired, rather than just holding fixed-income to maintain financial stability.

  • 0:45 People now understand that retirement is there own responsibility, and that they can’t rely on their employer or the government.
  • 2:00 Life cycle funds are in high demand, and they target retirement date. There are also others which target risk.
  • 3:30 People are realising that they need to keep investing in equities after 65 as they will be retired for 30 years and be in need of that growth.
  • 4:30 People get that well diversified is what is needed for retirement.
  • 5:00 Dodged question about how to get the 8% expected for retirement funds, but suggested emerging markets investments to solve that problem.

 

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