As the global uncertainty continues, institutional investors are struggling to understand and evaluate the new economic environment. The long-term legacy:
a better appreciation of risk.
Older workers are much less confident about their retirement security than they were two years ago as a result of the financial crisis. Workers with defined benefit plans are much more confident in their retirement prospects than those who participate only in a defined contribution plan, a Watson Wyatt study has found.
Pay raises are down significantly in Asia-Pacific from what they were nine months ago. Many companies have frozen pay in 2009, particularly in locations where businesses are more exposed to the slowdown in global trade — Hong Kong, Japan, Singapore, South Korea and Taiwan.
Pension funds in the United Kingdom and United States have reacted differently to the financial downturn, though all are interested in diversification, says Watson Wyatt's Carl Hess in a profile in the Financial Times.