6/18/14

"401(k)'s ‘Cash Negative’ By 2016"

"America’s sprawling 401(k) pension system will turn cash flow negative in 2016, threatening disruption for asset managers and selling of equities, according to analysis by Cerulli Associates...

...by 2016 it forecasts that inflows will be $364 billion and outflows $366 billion, with the deficit only widening year on year after that as the core of the baby-boomer generation retires...

“This has significant implications for asset managers and other financial services providers,”...

The combined value of the U.S. pensions system is some $9 trillion. The total market valuation of the global bond market is now over $100 trillion...

http://www.maxkeiser.com/2014/06/pensions-cash-negative-by-2016-timebomb-looms/#uLWbhHgAumbdRvjg.99

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