Solving for retirement: All paths lead to more private savings
The biggest challenge and opportunity for superannuation, pension and sovereign wealth funds is the climbing support ratio, particularly in developed economies, according to Michael Davis, head of global retirement strategy at T. Rowe Price. The support ratio, sometimes referred to in less flattering terms as the old-age dependency ratio, has been in rising across every major global economy. For example, in Japan, the support ratio is 51, meaning 100 working adults support 51 retirees. In the 1950s, the ratio was...
