I always look at the bigger picture and I’m concerned about issues that are 5-10 years down the pike. This is what you do when you have 20+ plus years left before retirement. I’ve always been a forward thinker, which often makes me rub badly against people who live in the past.
One of the greatest threats to the retirement plan business is student debt. 44 million Americans now owe an estimated $1.67 trillion in student debt. I remember talking to the law school dean at my alma mater and she told me that with room and board, all in tuition was $75,000 a year and that was 4 years ago. Imagine trying to service a $225,000 debt (not even including anything owed for college). When you have that much debt, how can you save for retirement?
I’m not suggesting that the Federal government forgive all that debt (including the $20,000 or so that I still owe), but I’m suggesting that unless something is done, people are going to save less for retirement. The problem is that with less people saving, the industry suffers as it’s too dependent on plan assets.