Forbes had a nice summary of some recent research on the long term viability of common retirement investments. Their analysis: if inflation and market conditions remain the same, traditional retirement vehicles like 401Ks and annuities could have problems.
From the Article:
Someone asked me last week why I thought economic inequality was rising and retirement was going to be difficult for my Baby Boomer generation and the generations after us.
My short conclusion: It’s a nasty, brutish 401(k) kind of world now.
Not only do we have to save for retirement mostly on our own — guaranteed pensions have gone the way of the Betamax — we are faced with more, expensive choices on out-of-pocket health care, a college tuition explosion and inflation-ravaged salaries. And more salt to these wounds: Savings yields and bond rates have been awful. Bond prices took a hit last month as investors freaked out over the Fed’s easing policy statements. And most investors still don’t trust the institution-dominated stock market.
Check the rest of the piece here.