TIAA CEO Ferguson on Retirement Savings, Fed's Balance Sheet

The video discusses the significant gaps in retirement savings, including coverage, savings, and guarantee gaps. It explores potential solutions from both government and private sectors, such as the Secure Act and 401K plans with guaranteed income options. The impact of low yields on savings and the importance of a diversified portfolio are highlighted. The role of the Federal Reserve, liquidity issues, and the debate over fiscal stimulus and inflation targets are also examined.

What are the three main gaps identified in the U.S. retirement savings system?

• Savings gap, investment gap, and guarantee gap

• Coverage gap, savings gap, and guarantee gap

• Income gap, savings gap, and investment gap

• Coverage gap, income gap, and investment gap

What is the Secure Act designed to do?

• Increase retirement age

• Create a safe harbor for guaranteed income in retirement plans

• Eliminate the savings gap

• Reduce taxes on retirement savings

How can the private sector help address the retirement savings gap?

• By eliminating retirement plans

• By offering guaranteed income options in 401K plans

• By increasing retirement age

• By reducing employee contributions

What is a suggested strategy to counteract low interest rates affecting retirement savings?

• Avoiding alternative investments

• Maintaining a broadly diversified portfolio

• Focusing on domestic equities

• Investing solely in bonds

Which asset classes have shown positive returns in a low interest rate environment?

• Only fixed income

• Equities, real estate, and infrastructure

• None of the above

• Bonds and cash

What is a potential risk of the Federal Reserve's monetary policy?

• Over-reliance on fiscal stimulus

• High unemployment

• Lack of liquidity

• Excessive inflation

What challenge do central banks face in achieving their inflation targets?

• Lack of technological advancement

• Global labor and capital markets

• High interest rates

• Excessive government spending