How well prepared are we to sustain ourselves and future generations into old age? A new report from the World Economic Forum (WEF), with contributions from Mercer, We’ll Live To 100: How Can We Afford It,? provides a disconcerting view.
According to the new WEF research, the current gap between aggregate savings and expected annual retirement income needs stands at $70T today. This is one and a half times the combined GDP of the eight countries studied - Australia, Canada, China, India, Japan, Netherlands, UK, and US. In the aggregate, these countries make up 44% of the world’s population and 57% of the world’s economic activity.
Even more troubling, the report finds that these eight countries are on course to face a combined shortfall of $400T by 2050 – a growth in the gap of $28B every day between now and 2050.
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