Trends in Savings: Challenges for Asset Managers and Distributors

1
Trends in Savings Challenges for Asset Managers
and Distributors

• Introductory remarks by Christopher Pissarides

2
Investment needs

• Depend both on life cycle stage, employment
  experience and macroeconomy
• Needs change first saving for a house, then for
  a pension, then to finance post-retirement
  consumption

3
Different liquidity needs

• Each requires different combinations of liquidity
  (access to savings), capital growth and rate of
  return
• Saving for a house requires high capital return
  without (necessarily) much liquidity
• Saving for retirement can give up liquidity
  altogether

4
Post-retirement

• Most innovation can take place in saving
  instruments available after retirement
• Large savings available, need for planned access
  and high rate of return
• Havent found any!

5
Current prospects

• Population ageing ageing of baby boomers with
  large accumulation of savings
• Most in inflated house values
• Need a way of turning that into a consumption
  stream

6
Lessons from recession

• Recession hit house values and asset holdings
  hard
• Need to find a way of preserving capital value as
  much as possible
• Shift to liquidity shows that such savings
  outlets are lacking