Here’s a brief excerpt from an article by Larry Fink for LinkedIn Pulse. To read the complete article and check out others, please click here.
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This week, I wrote a letter to shareholders as part of BlackRock’s annual report, and I shared my views on what I see as four mega-trends that are shaping our world. These trends don’t just affect shareholders or investors—they matter to us all. Here’s a look [at two]:
We’re Living Longer, But We’re Not Prepared
As I’ve written about on LinkedIn before, one of the defining challenges of our age is longevity and the associated retirement crisis it is helping to drive. People are living longer lives, but they’re not prepared: In the United States, for example, only 40% of Americans take part in any retirement plan. Savings for pre-retirees average just $12,000.
But that’s not the worst of it. In the coming decades, longevity is only going to increase. What does this mean to you? Well, more years to live mean more years to pay for. We all need to save more—a lot more. The old wisdom of putting away 5% a year just won’t cut it in today’s world—people need to be thinking about doubling that figure, or going even further.
Technology Is Reshaping the Jobs Market
Whether it’s a U.S. restaurant replacing waiters with tablet computers or an Indian car factory adding robots to the production line, machines are replacing people all over the world. Exacerbating the problem, many companies can’t find enough workers to do the more highly skilled jobs created by these transitions—programming, engineering, and more.
Part of this job loss is inevitable—but there’s an opportunity here as well. In a global, interconnected economy, jobs will flow to the nations with the best training and education and to the individuals who are seizing on these tectonic shifts.
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Whether it’s longevity, technology, infrastructure, or the markets, these trends are all deeply affecting each other—and they will be for years to come. The most important thing is to get out in front of them, and to peel back the surface to see what other major trends will begin to shape our world. I’m sure there are many out there that I’ve yet to even consider.
The opinions expressed are current as of April 2014, are subject to change and are deemed by BlackRock, Inc. to be accurate and reliable. Reliance upon information in this article is at the sole discretion of the reader.
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Here’s a direct link to the complete article.
Larry Fink is Chairman and CEO at BlackRock.