Global market retirement returns supposed to have okay cumulative returns in next 10 years

By Dian Vujovich

They say that time heals all wounds. Guess that’s true for financial ones too as anyone who has looked back at the history of stock market prices can see. Looking ahead, a news release from Allianz reports that the United States will dominate the world pension market and see positive returns over the next decade.

According to the Allianz Demographic Pulse report, pros expect an annual growth rate of 4.7 percent over the next decade on pension assets within the global retirement arena. As for the U.S., assets in its retirement market are expected to grow a bit less— at 3.6 percent annually.

“We expect the escalation in retirement savings to be the driving force for the development of the monetary wealth in many countries in Europe, Asia-Pacific and the United States,” said Renate Finke, senior pension analyst at Allianz, in a press release.

Finke added that he expects the emerging Asian markets to be the fastest growing. “These markets are expected to grow by 16.8% a year.”

You may read the entire report at www. http://tinyurl.com/2wf3y9g . It’s quite interesting.

Staying on that international return theme, but forgetting about retirement monies and looking only at current returns, (rather than anticipated future ones), the Canadian market has been kind to its shareholders this year.

Each of the G8 countries in the Russell Global Indexes all have had positive 3rd quarter returns through Sept.3. Through that date, year-to-date figures show that the Russell Canada Index topped the list. It was up 5.6 percent.

Looking only at 3rd quarter through September 3 numbers, the Russell UK Index had gained the most, up 14.5 percent; behind it, Italy’s Index, up 12.9 percent; then France’s Index, up 12.3 percent; Russia next, up 10.8 percent; followed by Canada, up 10 percent; then Germany, up 8.3 percent; the United States, ahead 7.5 percent; and then Japan, up 2.7 percent.

The top three global index year-to-date returns from January through September 3, show the Russell Canada Index up 5.6 percent; the Russell Russia Index, ahead 4.2 percent; and the Russell Japan Index, up 1.4 percent.

The biggest laggard? Italy, down 17.1 percent.