Are you ready to secure your retirement future? According to the 2022 CFA Institute Investor Trust Study, saving for retirement is the top investment goal for 47% of respondents.
However, traditional retirement savings strategies might not be as effective as they once were. With challenges like weaker diversification, declining real returns, and rising inflation, pension funds are exploring new avenues to meet their return targets. This includes considering allocations to cryptoassets.
But how does this shift impact the trust in the financial services industry moving forward? Let’s delve deeper.
Concerns like slower wage growth and an aging population pose significant threats to pension funds’ sustainability, as per the Mercer CFA Institute Global Pension Index. The pressure is on to meet return targets while acknowledging the uncertainty ahead.
Will You Meet Your Target Return?
Amid these uncertainties, pension funds are increasingly turning to cryptoassets to diversify their portfolios and potentially bolster returns. As the crypto market experiences volatility, the adoption of digital assets by pension funds has been on the rise.
While risks are inherent in the crypto market, pension funds are strategically exploring opportunities presented by digital assets and blockchain technology. This shift opens new avenues for investment but also requires careful risk assessment and communication with plan participants.
Curious about the future of trust in the financial industry amid these changes? It’s a conversation worth having.
Disclaimer: The opinions in this content do not constitute investment advice, and the views expressed are solely those of the author.
Image credit: ©Getty Images/Who_I_am
Stay Informed with CFA Institute
Stay ahead of the curve by tracking trends and insights in the financial industry with content like this. The future of retirement planning might just be one click away.
