$5 trillion in pension assets evaporate in ‘08

[Robbien]

Source: Pensions

Pension assets of the 11 largest pension markets fell 19% in 2008, taking about $5 trillion out of retirement coffers, according to a new Watson Wyatt Worldwide report.

. . . Watson Wyatt found that pension assets constituted 61% of the average GDP of the 11 countries at year-end 2008, down from 72% a decade ago.

“To meet the demographic crunch ahead, countries need the advanced funding of pensions to grow relative to the size of their economies,” Roger Urwin, global head of investment content at Watson Wyatt, said in a news release. “This is a wake-up call for governments worldwide to engineer bigger allocations to pension savings.”

Pension fund assets grew by an average annualized 12% for the five years ended Dec. 31, 2007.

. . .

The U.S., Japan and the U.K. remained the three largest pension markets by asset size, while Canada, Australia, Netherlands and Switzerland rounded out the top seven. Following were Germany, France, Ireland and Hong Kong. The top seven countries held about 97% of total assets, with the U.S. alone accounting for more than 60%.

Read more: http://www.pionline.com/apps/pbcs.dll/article?AID=/20090126/DAILY/901269997

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So the US share of this loss is about three trillion? Just mind boggling.

[acmavm]

1. That money just didn't up and disappear. There was money invested

somewhere. Where did it go?????????

Wall Street and the banks are getting big money. What are they paying for besides 50 million dollar jets?

[Robbien]

2. The pension companies bought all that funny money derivatives

that hedges and banks were printing. When they invested in the monopoly money, the bankers and hedgers got the dough and climbed up the Forbes 400 list while pensions were left sitting there gazing at their prettily colored derivative investment papers worth diddly squat.

[OnceUponTimeOnTheNet]

3. Short and sweet, amusing too for some reason.

It's good to still be able to smile and laugh at this situation. My husband lost over 20,000 last year in his 401.

[SoCalDem]

9. We lost about $25K in ours..and about $200K in "fake-equity" in our house

we had planned to retire in 5 years..probably not now :(

[OnceUponTimeOnTheNet]

11. 200 G in faux equity loss? O.M.G. I pray you did not tap it.

[SoCalDem]

12. Nope... we had hoped to use it (if the market held up)

to pay cash for a small place when we retired:(..on to plan B

plan B...

pray we break even, and rent a small place:)

[OnceUponTimeOnTheNet]

14. I hope it works out for you Cal. Equity in homes hereabouts had not reached the hyper levels seen

in much of the Nation. This is Northern Michigan, it's been brutal for a decade now.

Hope you land softly. Your warm weather I envy!

[acmavm]

5. Perfect! You bring me to my next point. The guys that got the money are

they guys we are bailing out.

So again, where did the money go?

[Robbien]

7. Offshore super secret accounts

is where I'm figuring.

What wasn't spent, of course, on all those fancy $2,000 pairs of shoes and $52,000 tailor made suits and $1,000 lunch entrees.

[SoCalDem]

10. REAL ESTATE and "toys"..and parties & jewelry & planes & high living

:(

[dixiegrrrrl]

4. I Posted this in a related thread early this am.....

The retirement laws were a scam.

Look what they did:
they force you to give up control of your money for 20-30 years.
the money usually goes to banks and investment companies and Wall Street
where it artificially pumps up the economy.
The only proof you have any money is a paper statement.

The crooked investment banks now have "lost" most of the retirement funds, with a few
exceptions.
Companies have "lost" people's pension funds.

If by some miracle you do get to withdrawal age, there are taxes on the funds...
capital gains, income taxes, etc. ( with the exception of years 2008 thru 2010 )
( gee, what a co-incidence for big bucks people, as it turned out)

And now there is talk of making retirement plans mandatory for workers..you will have to contribute, no choice.

And didja notice this last broad daylight robbery of the Treasury occurred just before most boomers were eligible to take out the money?
I think the money was long gone before this crash.

[whistle]

6. This has been corporate America's goal for the past eight years

...and BushCo made it happen. They considered mission NOT accomplished because they were unable to steal Social Security trust fund along with it, so they are now bankrupting America.

The bastards who perpetrated this great swindle need to be dragged out of their safe houses and prosecuted

[aquart]

8. Really? I went straight to evisceration.

But sometimes my tolerance lags.

[earcandle]

13. I am so glad I did not invest in pensions.

They were supposed to be so secure, with all that paperwork to guard the funds and fees attached for the administration of them. Seems like there can be an audit and where the money went can be found. Just pull the bank statements and copies of the checks, front and back and you will find your money. Accounting really does work, if you follow the money.

[Doctor_J]

15. my 403b got seriously bushwhacked

i guess even the ginormous institutionals were not immune