The baby boomer generation must take more investment risk if it is to generate enough income in retirement, according to one investment management chief.
Principal Global Investors chief executive Nick Lyster said with the baby boomer generation moving into retirement, there will be 15 years when "literally trillions of dollars pour into the investment market". He said this would likely could come from defined contribution (DC) plans. The payout on products will therefore be kept low by higher demand, he said. As a result these pensioners will need to take more risk leading up to or during their retirement to receive a satisfactory level of income. Lyster explained that retirees should therefore be looking at diversified income...
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