The danger beneath the AI boom powering your pension
View original at uk.finance.yahoo.comThe danger beneath the AI boom powering your pension An elderly couple in a soap bubble is being pricked by a needle so it's about to burst A revolutionary new technology promises to change forever the way humans live and work…
What we drew from this source
The claims Via News extracted from this document. We point to the source; we don't replace it.
Retirement-age individuals who were still working watched their nest eggs shrink, and many have undoubtedly concluded that it would be prudent to continue the income from working until either the market recovers or they have had an opportunity to rebuild
80% confidenceIt is still too early to call the growth of AI-related industries a bubble
80% confidenceI don't think there is a huge risk. We're in a very different place to where we were in the internet bubble. The actual earnings are there, a lot of these companies are much more mature with very robust balance sheets
80% confidenceIf you are a tech firm and you spend £100bn on GPUs and you depreciate them on your balance sheet over four years but they actually depreciate over two years, then you have effectively made up £50bn of earnings
80% confidenceAnyone in this generation on the cusp of retirement face their retirement portfolio being destroyed if they are overly exposed to equities during a crash
80% confidenceGetting your asset allocation right is key. If you are looking at retiring in the next five years you can't tolerate a 50% loss
80% confidenceThe bubble has been talked about for some time but stocks are still pretty close to their all time highs
80% confidenceWorkers considering retiring in the next five years should look carefully at how their pensions have been invested
80% confidenceThe number of US workers retiring was projected to have dropped by 3% compared with a scenario in which markets didn't crash
80% confidence