As we move through the various stages of the pandemic, investors want to know what will happen in the economy and markets. More specifically, how will these conditions drive interest rate changes and impact the planning process for retirement portfolios?
In their September commentary, Todd Mattina (Mackenzie’s Chief Economist, Portfolio Manager and Co-Lead of the Mackenzie Multi-Asset Strategies Team) and Jules Boudreau (Economist, Mackenzie Multi-Asset Strategies Team) share their macroeconomic insights regarding:
1. How low yields reflect slowing economic growth (hastened by the pandemic) and are likely part of a “lower for longer” trend, rather than being a short-term cyclical event.
2. How a lower risk-free rate may force long-term savers to accumulate more assets to fund their target level of retirement income.
3. How investors must shift their thinking about asset allocation in retirement portfolios to effectively manage risks and ensure portfolio returns can meet future income needs.
For more valuable insights from Todd and Jules, read their September commentary, “The new retirement reality: “lower for longer” interest rates and the implications for retirement portfolios.”