Konstantin Boehmer, Vice President and Portfolio Manager on the Mackenzie Fixed Income Team believes the upcoming pension crisis will be the defining moment for financial markets. Konstantin joined BNN Bloomberg to talk about why he fears it will be even bigger than the great financial crisis of 2008.
Just a few of the underlying reasons covered in this interview include:
- Why living beyond our means has increased total debt levels to 3x the GDP, not including pension and healthcare liabilities that haven't been accounted for
- How global assumptions about our pension systems are based on outdated demographics and on unrealistically high return expectations
- Why inflexible pension funds invested in risky assets are now getting to the stage where they're paying out more than they're taking in
- The danger of falsely assuming that we're richer than we think, and why you could be in for a rude awakening when it's time to retire.
To learn more about 4 major design flaws in Canada's pension system, read Konstantin's white paper, The Looming Pension Crisis: Why it Matters and How to Prepare.