In America and Europe, there is a silent transfer of wealth taking place every day as savings are eroded to fund government spending. Cash-strapped and heavily indebted governments are desperate to hold down the interest rate at which they borrow. This means perennially low interest rates for savers: rates so low that they don’t match the rate of inflation. The result is that retirees are forced to consume their wealth in order to pay the bills.

Click here to read the full analysis, written by Peter Warburton, PhD, only at LIGNET.com.