Low interest, bond yields 'punishing' for retirees
US retirement savings now need to be four times what was required 40 years ago to generate the same level of investment income: S&P
London
LOW global interest rates are crippling baby-boomer retirees who are now at risk from underperforming bond and equity markets.
Despite the rise in US Federal Reserve rates to 0.25 per cent, saving rates and 10-year Treasury bond yields at 2.2 per cent are still punitively low. At that bond yield, the amount of time a compounded return would cause the original investment to double would be 32 years.
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