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Trends in Savings: Challenges for Asset Managers and Distributors

Trends in Savings: Challenges for Asset Managers and Distributors. Introductory remarks by Christopher Pissarides. Investment needs. Depend both on life cycle stage, employment experience and macroeconomy

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Trends in Savings: Challenges for Asset Managers and Distributors

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  1. Trends in Savings: Challenges for Asset Managers and Distributors Introductory remarks by Christopher Pissarides

  2. Investment needs • Depend both on life cycle stage, employment experience and macroeconomy • Needs change: first saving for a house, then for a pension, then to finance post-retirement consumption

  3. Different liquidity needs • Each requires different combinations of liquidity (access to savings), capital growth and rate of return • Saving for a house requires high capital return without (necessarily) much liquidity • Saving for retirement can give up liquidity altogether

  4. Post-retirement • Most innovation can take place in saving instruments available after retirement • Large savings available, need for planned access and high rate of return • Haven’t found any!

  5. Current prospects • Population ageing – ageing of baby boomers with large accumulation of savings • Most in inflated house values • Need a way of turning that into a consumption stream

  6. Lessons from recession • Recession hit house values and asset holdings hard • Need to find a way of preserving capital value as much as possible • Shift to liquidity shows that such savings outlets are lacking

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