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Real Vision: Finance & Investing

Adventures in Finance 11 - Broken Promises: The Impending Global Pension Crisis

Real Vision: Finance & Investing

Real Vision

Business, Business News, News, Investing

4.21K Ratings

🗓️ 14 April 2017

⏱️ 67 minutes

🧾️ Download transcript

Summary

The financial system will soon witness a collision between an unstoppable force and an immovable object. Pensions around the world are being crushed under the weight of trillions in unfunded liabilities while hundreds of millions of Baby Boomers are advancing to retirement in ever greater numbers, creating a perfect storm for the next crisis that is all but mathematically certain to happen. In 'Things I Got Wrong', Preston Pysh (@PrestonPysh), co-host of The Investors Podcast, shares crucial lessons about applying value investing principles in times of crisis. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0

Do you know the number one obstacle to financial success, time or lack of it?

0:07.0

Without enough time you can't learn efficiently, plan effectively, or focus on the right strategies.

0:13.0

That's why Real Vision offers you a simple and efficient way to gain expert knowledge,

0:18.0

using time-saving market tools and leverage the brain power of our community to help you succeed faster.

0:25.6

Get a taste of financial freedom with our offer at real vision.com forward slash free.

0:31.4

That's real vision.com forward slash free. This week on Adventures in Finance, we're going to be talking about what is probably the biggest story of our time.

0:52.0

The story centers on an impending crisis that people just

0:55.8

aren't talking about and nothing is being done. The baby boomers with all of the

1:00.9

capital in the world have to retire and the problem is the pensions

1:05.6

that they have accumulated generally are underfunded and that's meant that these guys probably

1:11.0

don't have enough money to retire.

1:13.0

Now this isn't just a story about finance.

1:15.0

This is a story about people and their families.

1:18.0

People who've worked their entire lives counting on a system that was designed to fail.

1:23.0

And right now, pensions around the world are facing a staggering $75 trillion in unfunded liabilities.

1:30.0

And that's just basically fancy accounting jargon for a mountain of broken promises.

1:35.0

Broken promises when combined with underfunded pensions in the US alone,

1:40.0

75 million baby boomers will be retiring in the coming decade and a half and will be relying

1:44.9

on their pensions and investments to live out their golden years as they had envisioned.

1:49.1

On the one hand you've got somebody who is legitimately saying my wife chose to work in education

1:57.0

and she was made this promise of a pension throughout her career and she has legitimately and legally

2:04.7

earned every single penny that's been promised to her.

...

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