Pension stampedes

Fresh research from the San Francisco Fed provides an explanation: baby boomers. As they retire in droves, their exit from the workforce is distorting the data for average earnings, according to a blog post published Monday on the bank’s website.

“Wage growth isn’t as disappointing as it looks,” Mary Daly, director of economic research at the San Francisco Fed, said in an interview. “Wage growth, when cleaned up, looks consistent with other measures seen in the labor market.”

 It is the second difference in retirement accounts.   Th retirement systems are complexly bounded with COLAs and fixed share ratios as well as tax   changes, the rising cost of government debt, probability of a recession and commie rat capital controls.  Potential retirees plot, collectively, their retirement to maximize pay off against these complex bounds.   So, treasury see unexpected change in accounts causing volatility in interest charges.   It is a double whammy, hitting in wage taxes and payments out.