Retirees Are Facing More Problems Than Ever

Core Insights - The upcoming year may represent a significant turning point for retirement planning as the aging US population increases the demand for effective retirement solutions [1] Demographics and Market Risks - The US population aged 65 and older is expected to grow steadily, with 12,000 new retirees reaching age 65 daily, highlighting the urgency for effective retirement strategies [2][4] - Two major risks for retirees by 2026 include market concentration, where a few mega-cap technology stocks dominate the S&P 500, and inflation, which threatens purchasing power for those reliant on fixed income streams [4] Retirement Savings Landscape - There exists a $4 trillion "savings gap" between the amount Americans should have saved for retirement and what they currently possess, indicating a significant shortfall in retirement preparedness [5] - Less than 10% of Americans' overall wealth is derived from pensions, emphasizing the need for alternative retirement income sources [5] Evolving Investment Strategies - New asset classes, particularly private equity and private credit, are being integrated into retirement plans, with US pensions already allocating over 25% of their assets to private markets [4] - The gap in exposure to private assets for everyday retirement savers is narrowing as platforms evolve, suggesting a shift towards more diversified investment strategies [4]