Retirement strategies. Saving for and spending during. The world is awash with writings on how to save and invest for retirement. The volume of material is vast and it is being added to daily, including by me. Why is it so? If ever there were a topic that should have been settled over 100 years ago, retirement savings is it. There is no need for continuously adding to the material. The fact that such material is ever growing hints that there is a problem. If the topic was settled, there would be no need for a constant barrage of new material.
There most definitely is a problem in retirement savings (in advanced economies): it is the futility of trying to save effectively on an individual basis without any risk sharing arrangements in the context of lengthening life-spans, higher costs of living and higher expectations of lifestyle. It is a cruel hoax foisted on the bulk of the population that insists they can do it, provided they have the right investment strategy, the right draw-down strategy, the right contribution strategy and so on. But the right combination does not exist. That is why people are always looking for new ways, new ideas, some development or technique that will allow them to save effectively and retire securely in a lifestyle that meets their expectations. Yet it cannot happen but for the small proportion of each country’s most wealthy. Continue reading