If this is happening in Canada, what is happening in the US?
I just read this article on discussions with "urgency" over the aging population in Canada and the costs that are no longer predicted to start ramping up some years down the road, but in "months."
The US news has been dominated by the debt ceiling, employment numbers, recession, etc., etc., etc., and there has been relatively little news as to how the US's aging population is playing into those numbers.
Internal government documents obtained by The Globe and Mail show Canada’s aging population is no longer a problem on the horizon, but rather one that will impact the federal government this year.
Don't Canada and the US share the same baby boom?
So, we are in year 1 where there is a demographic jump in the number of people who are likely no longer increasing investments. Governments and pension funds have no choice but to pay benefits owed so pension funds definitely stop getting contributions and have to start paying out for this group and bringing down the deficit becomes that much harder for government. I tend to think private draws on investments will be lagging. I think people would want to see how they manage on their pensions before dipping into investments.
I think this effect is small this year, but how do you think it will look in say 5 years? Or 10 years? What is this going to do to the markets? The market is dominated by looking at job numbers. Is there going to be a pension numbers to look at?