Japan is struggling for record loss the world’s largest retirement fund
Japanese retirees have reasons to be worried. The government pension fund, which is also the largest fund in the world, incurred a record loss of $ 136 billion in investments last quarter. The income of the growing group of Japanese elderly people was not very positive, Japan has been historically quiet on poverty issues.
The government fund’s assets dropped to $ 1.43 trillion at the end of last year, 155.6 trillion yen, according to Morgan Stanley MUFG Securities calculations.
That would mean a record loss of 14 trillion yen from September. According to experts, the cause lies mainly in the investments of the pension fund in Japanese bonds, which offer hardly any return, the government bonds offered 1.01% return. The total investments of the GPIF thus showed -9.06% return over the past quarter compared to the previous one. That third quarter then offered a return of 3.4%.
The Japanese economy is also shrinking. For the strongly aging population, this result means that it is more likely that her pension payment may no longer be certain.