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US retirement at risk

Sep 30, 2008

This report by Allianz Global Investors argues that the US pension landscape is in a state of transition and, as a result, the population will be exposed to ever more retirement risks. The role of Social Security is uncertain and employers are continuing to move away from guaranteeing pension benefits. As a result, there has been an evident shift from collective to individual responsibility.

The evident transition in the US pension landscape can be identified by three trends:

I. Less generous Social Security benefits.

II. A continuing shift from defined benefit to defined contribution pension plans, leaving employees holding more of the risks associated with capital markets and longevity.

III. A structural shift in company pension plans towards individual pension plans, such as Individual Retirements Accounts (IRAs).

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US retirement at risk