On April 17, Chad Parks, the founder and CEO of The Online 401(k) embarked on a six-week, 6,000-mile journey across the U.S. to raise awareness about the impending retirement crisis.
Parks (left), along with two cinematographers and two screenwriters are traveling from San Francisco to New York to interview Americans from all walks of life about their retirement saving habits and knowledge of retirement savings. The responses will be compiled into a documentary called “Broken Eggs: The Looming Retirement Crisis in America.”
The retirement industry has been hit with the perfect storm, Parks said, with 10,000 Baby Boomers retiring a day. “How does that affect the macroeconomic system? Do they have enough to live on? Have they saved enough? Most say they will continue to work into retirement, which is fine if you have an employer or a job to employ you,” he said. “The bigger picture is that all of these people are retiring, which will have a macroeconomic effect on the stock market and workers in general. If they don’t have any earning ability, they are going to hoard.”
On the macro scale that means these people are moving their retirement savings to the bond market and selling off their stake in equities because they are not looking for growth anymore. “Demand for equities is going to go down and prices are going to go down. The demand for fixed income [will go] up so yields go down,” he said.