Workers in the deeply damaged European economy have a further issue to ponder, besides their current woes: Four years of near-zero interest rates mean their nationalized pension plans are also in serious trouble. It's an issue which can also be felt here in the United States.
According to Reuters, that no-gain investment climate and the ongoing series of market panics have led to record lows for the low-risk German, British and U.S. government bonds which pensions are normally based upon.
With returns that are being beaten by inflation, which runs at around 2 percent in most of Europe, workers hoping to enjoy a well-funded retirement are finding the value of their savings slipping further and further. As we also find here at home.
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