The negative interest rate is a threat to our pension
Usually, when discussing the problem of low or as in Sweden's case - minus interest rate - many people defend the current monetary policy by contributing to increased consumption and growth, that more people can afford to buy housing and that it is simply good for economy as a whole. More consumption leads to more growth, and everyone is satisfied.
Usually, when discussing the problem of low or as in Sweden's case - minus interest rate - many people defend the current monetary policy by contributing to increased consumption and growth, that more people can afford to buy housing and that it is simply good for economy as a whole. More consumption leads to more growth, and everyone is satisfied.
The problem of negative interest rates, however, extends much further than growing debt mountains, both in the private sector and for companies and entire states. In Sweden, indebtedness is high, and in recent years, household debt has risen faster than both income and GDP. Mostly mortgage loans.
Just indebtedness says Stefan Ingves and the Riksbank constitute the biggest threat to the Swedish economy. Thus it is not possible to raise the interest rate either. The problem, however, is that with continued low interest rates, indebtedness also continues to rise, so we have rolled a snowball out a mountain and it does not seem like it is about to stop in the near future.
What can one as private savers do to protect their future on older days? First and foremost, you need your own savings, and how it should be distributed depends a little on how long you have left before you retire.
If you have 20 years or more before it is time to stop working, there is reason to withdraw the risk in your savings. Then 100% equity funds could be a good alternative, spread across several different geographic markets to spread the risk. With less than 20 years left, it is a situation to reduce the risk in the portfolio, but since interest-bearing paper is not an alternative in today's low-interest environment, one should instead invest in other options.