Error!

X

There was a problem contacting the server. Please try after sometime.

Sorry, we are unable to process your request.

Error!

X

We're sorry, but the Insights and Intelligence Tool is temporarily unavailable

If this problem persists, or if you need immediate assistance, please contact Customer Service at 1-888-522-2388.

Error!

X

We're sorry, but the Literature Center checkout function is temporarily unavailable.

If this problem persists, or if you need immediate assistance, please contact Customer Service at 1-888-522-2388.

Financial Professionals

Forgot password

Forgot Your LordAbbett.com password?

If you are a registered user, but have forgotten your LordAbbett.com password, please enter your email address.
Once your email address is verified, we will send you an email with instructions on how to reset your password.

EMAIL ADDRESS
e.g. joe@firm.com

Financial Professionals

Forgot Password

Thank you.

An email has been sent to with instructions on resetting your password.

Financial Professionals

Reset Password

NEW PASSWORD
Your password must be a minimum of characters.
CONFIRM NEW PASSWORD

Financial Professionals

Reset Password

Confirmation Message

Your LordAbbett.com password was successully updated. This page will be refreshed after 3 seconds.

OK

Financial Professional*

  • Gain access to exclusive LinkedIn Groups
  • Simplify your login
LOGIN WITH LinkedIn
LOGIN WITH LinkedIn

A verification Email Has Been Sent

Close

An email verification email has been sent to .
Follow the instructions to complete the email validation process.

I have not received my verification email

Check your SPAM mailbox and make sure that twelcome@lordabbett.com is allowed to send you mail.

I'm still having trouble

If you're still having trouble verifying your email address. feel free to contact us.

1-888-522-2388
clientservices@lordabbett.com


OK

We're sorry. We found no record of the email address you provided.

Close

Register For a LordAbbett.com Account
Using Your Email Address.

  • Registered Financial Advisors gain access to:
  • Our data mining tool, Insight & Intelligence
  • Best in-class practice management content
  • Educational events, videos and podcasts.
  • The Lord Abbett Review - Subscribe now!

Registered but Having Problems?

If you believe you are registered and are having problems verifying your email address, feel free to contact us.

1-888-522-2388 clientservices@lordabbett.com

Terms & Condition

X

These Terms of Use ("Terms of Use") are made between the undersigned user ("you") and Lord, Abbett & Co. ("we" or "us"). They become effective on the date that you electronically execute these Terms of Use ("Effective Date").

A. You are a successful financial consultant that markets securities, including the Lord Abbett Family of Funds;

B. We have developed the Lord Abbett Intelligence System (the "Intelligence System"), a state of the art information resource that we make available to a limited community of broker/dealers through the Internet at a secure Web site (the "LAIS Site"); and

C. We wish to provide access to the Intelligence System to you as an information tool responsive to the demands of your successful business pursuant to these Terms of Use. Accordingly, you and we, intending to be legally bound, hereby agree as follows:]

1. Overview. · Scope. These Terms of Use (which we may amend from time to time) govern your use of the Intelligence System. · Revisions; Changes. We may amend these Terms of Use at any time by posting amended Terms of Use ("Amended Terms of Use") on the LAIS Site. Any Amended Terms of Use will become effective immediately upon posting. Your use of the Intelligence System after any Amended Terms of Use become effective will be deemed to constitute your acceptance of those Amended Terms of Use.We may modify or discontinue the Intelligence System at any time, temporarily or permanently, with or without notice to you. Purpose of the Intelligence System. The Intelligence System is intended to be an information resource that you may use to contribute to your business research. The Intelligence System is for broker/dealer use only; it is not to be used with the public in oral, written or electronic form. The information on the Intelligence System and LAIS Site is for your information only and is neither the tax, legal or investment advice of Lord Abbett or its third-party sources nor their recommendation to purchase or sell any security.

2. Your Privileges. · Personal Use. Your use of the Intelligence System is a nontransferable privilege granted by us to you and that we may deny, suspend or revoke at any time, with or without cause or notice. · Access to and Use of the Intelligence System. The User ID and password (together, an "Access ID") issued by us to you (as subsequently changed by you from time to time) is for your exclusive access to and use of the Intelligence System. You will: (a) be responsible for the security and use of your Access ID, (b) not disclose your Access ID to anyone and (c) not permit anyone to use your Access ID. Any access or use of the Intelligence System through the use of your Access ID will be deemed to be your actions, for which you will be responsible. · Required Technology. You must provide, at your own cost and expense, the equipment and services necessary to access and use the Intelligence System. At any time, we may change the supporting technology and services necessary to use the Intelligence System. · Availability. We make no guarantee that you will be able to access the Intelligence System at any given time or that your access will be uninterrupted, error-free or free from unauthorized security breaches.

3. Rights in Data. Our use of information collected from you will be in accordance with our Privacy Policy posted on the LAIS Site. Our compliance with our Privacy Policy will survive any termination of these Terms of Use or of your use of the Intelligence System.

4. Your Conduct in the Use of the Intelligence System. You may access, search, view and store a personal copy of the information contained on the LAIS Site for your use as a broker/dealer. Any other use by you of the Intelligence System and the information contained on the LAIS Site these Terms of Use is strictly prohibited. Without limiting the preceding sentence, you will not: · Engage in or permit any reproduction, copying, translation, modification, adaptation, creation of derivative works from, distribution, transmission, transfer, republication, compilation or decompilation, reverse engineering, display, removal or deletion of the Intelligence System, any portion thereof, or any data, content or information provided by us or any of our third-party sources in any form, media or technology now existing or hereafter developed, that is not specifically authorized under these Terms of Use.

· Remove, obscure or alter any notice, disclaimer or other disclosure affixed to or contained within the Intelligence System, including any copyright notice, trademark and other proprietary rights notices and any legal notices regarding the data, content or information provided through the Intelligence System.

· Create a hyperlink to, frame or use framing techniques to enclose any information found anywhere on the LAIS Site without our express prior written consent.

· Impersonate any person, or falsely state or otherwise misrepresent his or her affiliation with any person in connection with any use of the Intelligence System.

· Breach or attempt to breach the security of the Intelligence System or any network, servers, data, or computers or other hardware relating to or used in connection with the Intelligence System; nor (b) use or distribute through the Intelligence System software or other tools or devices designed to interfere with or compromise the privacy, security or use of the Intelligence System by others or the operations or assets of any person.

· Violate any applicable law, including, without limitation, any state federal securities laws. 5. Your Representations and Warranties. You hereby represent and warrant to us, for our benefit, as of the time of these Terms of Use and for so long as you continue to use the Intelligence System, that (a) you are, and will continue to be, in compliance with these Terms of Use and any applicable laws and (b) you are authorized to provide to us the information we collect, as described in our Privacy Policy.

6. Disclaimer of Warranties.

· General Disclaimers.

THE INTELLIGENCE SYSTEM, THE LAIS SITE AND ALL DATA, INFORMATION AND CONTENT ON THE LAIS SITE ARE PROVIDED "AS IS" AND “AS AVAILABLE” AND WITHOUT ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND. WITHOUT LIMITING THE PRECEDING SENTENCE, LORD ABBETT, ITS AFFILIATES, AGENTS, THIRD-PARTY SUPPLIERS AND LICENSORS, AND THEIR RESPECTIVE EMPLOYEES, CONTRACTORS, DIRECTORS, OFFICERS AND SHAREHOLDERS (COLLECTIVELY, THE “LORD ABBETT GROUP”) EXPRESSLY DISCLAIM ALL WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NONINFRINGEMENT. YOU EXPRESSLY AGREE THAT YOUR USE OF THE LAIS SITE, THE INTELLIGENCE SYSTEM, AND THE DATA, INFORMATION AND CONTENT PRESENTED THERE ARE AT YOUR SOLE RISK AND THAT THE LORD ABBETT GROUP WILL NOT BE RESPONSIBLE FOR ANY (A) ERRORS OR INACCURACIES IN THE DATA, CONTENT AND INFORMATION ON THE LAIS SITE AND THE INTELLIGENCE SYSTEM OR (B) ANY TERMINATION, SUSPENSION, INTERRUPTION OF SERVICES, OR DELAYS IN THE OPERATION OF THE LAIS SITE OR THE INTELLIGENCE SYSTEM.

· Disclaimer Regarding Investment Research.

THE INTELLIGENCE SYSTEM INCORPORATES DATA, CONTENT AND INFORMATION FROM VARIOUS SOURCES THAT WE BELIEVE TO BE ACCURATE AND RELIABLE. HOWEVER, THE LORD ABBETT GROUP MAKES NO CLAIMS, REPRESENTATIONS OR WARRANTIES AS TO THE ACCURACY, TIMELINESS, COMPLETENESS OR TRUTHFULNESS OF SUCH DATA, CONTENT AND INFORMATION. YOU EXPRESSLY AGREE THAT YOU ARE RESPONSIBLE FOR INDEPENDENTLY VERIFYING YOUR INVESTMENT RESEARCH PRIOR TO FORMING YOUR INVESTMENT DECISIONS OR RENDERING INVESTMENT ADVICE. THE LORD ABBETT GROUP WILL NOT BE LIABLE FOR ANY INVESTMENT DECISION MADE BY YOU OR ANY OTHER PERSON BASED UPON THE DATA, CONTENT AND INFORMATION PROVIDED THROUGH THE INTELLIGENCE SYSTEM OR ON THE LAIS SITE.

· Survival.

THIS SECTION 6 SHALL SURVIVE ANY TERMINATION OF THESE TERMS OF USE OR YOUR USE OF THE INTELLIGENCE SYSTEM..

7. Limitations on Liability.

NONE OF THE MEMBERS OF THE LORD ABBETT GROUP WILL BE LIABLE TO YOU OR ANY OTHER PERSON FOR ANY DIRECT, INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE, SPECIAL OR EXEMPLARY DAMAGES (INCLUDING LOSS OF PROFITS, LOSS OF USE, TRANSACTION LOSSES, OPPORTUNITY COSTS, LOSS OF DATA, OR INTERRUPTION OF BUSINESS) RESULTING FROM, ARISING OUT OF OR IN ANY WAY RELATING TO THE INTELLIGENCE SYSTEM, THE LAIS SITE OR YOUR USE THEREOF, EVEN IF THE LORD ABBETT GROUP HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THIS SECTION 7 WILL SURVIVE ANY TERMINATION OF THESE TERMS OF USE OR YOUR USE OF THE INTELLIGENCE SYSTEM.

8. Miscellaneous Provisions.

· Governing Law. This Agreement will governed by and construed in accordance with the laws of the State of New York, without giving effect to applicable conflicts of law principles.

THE UNIFORM COMPUTER INFORMATION TRANSACTIONS ACT OR ANY VERSION THEREOF, ADOPTED BY ANY STATE, IN ANY FORM ("UCITA") WILL NOT APPLY TO THESE TERMS OF USE. TO THE EXTENT THAT UCITA IS APPLICABLE, THE PARTIES HEREBY AGREE TO OPT OUT OF THE APPLICABILITY OF UCITA PURSUANT TO THE OPT-OUT PROVISION(S) CONTAINED THEREIN.

The Intelligence System is not intended to be used by consumers, nor are the consumer protection laws of any jurisdiction intended to apply to the Intelligence System. You agree to initiate and maintain any action, suit or proceeding relating to these Terms of Use or arising out of the use of the Intelligence System exclusively in the courts, state and federal, located in or having jurisdiction over New York County, New York.

YOU HEREBY CONSENT TO THE PERSONAL JURISDICTION AND VENUE OF THE COURTS, STATE AND FEDERAL, LOCATED IN OR HAVING JURISDICTION OVER NEW YORK COUNTY, NEW YORK. YOU AGREE THAT YOU WILL NOT OBJECT TO A PROCEEDING BROUGHT IN YOUR LOCAL JURISDICTION TO ENFORCE AN ORDER OR JUDGMENT OBTAINED IN NEW YORK.

· Relationship of Parties. The parties to these Terms of Use are independent contractors and nothing in these Terms of Use will be construed as creating an employment relationship, joint venture, partnership, agency or fiduciary relationship between the parties.

· Notice. All notices provided under these Terms of Use will be in writing and will be deemed effective: (a) when delivered personally, (b) when received by electronic delivery, (c) one business day after deposit with a commercial overnight carrier specifying next day delivery, with written verification of receipt, or (d) three business days after having been sent by registered or certified mail, return receipt requested. We will only accept notices from you in English and by conventional mail addressed to: General Counsel Lord, Abbett & Co. 90 Hudson Street Jersey City, N.J. 07302-3973 We may give you notice by conventional mail or electronic mail addressed to the last mail or electronic mail address transmitted by you to us.

· Third-Party Beneficiaries. The members of the Lord Abbett Group are third-party beneficiaries of the rights and benefits provided to us under these Terms of Use. You understand and agree that any right or benefit available to us or any member of the Lord Abbett Group hereunder will also be deemed to accrue to the benefit of, and may be exercised directly by, any member of the Lord Abbett Group to the extent applicable.

· Survival. This Section 8 will survive any termination of these Terms of Use or your use of the Intelligence System. The undersigned hereby signs these Terms of Use. By electronically signing and clicking "Accept" below, these Terms of Use will be legally binding on me. To sign these Terms of Use, confirm your full name and enter your User ID and Password (as your electronic signature) in the fields indicated below and click the “I Accept” button.

 

Economic Insights

In the first of a series on population trends that will shape the U.S. economy, Milton Ezrati looks at the policy challenges posed by an aging America.

During this brief lull between crises in Washington, investors might do something the government seems loath to do: consider longer-term fundamentals. One critical matter on this more distant horizon is the increasing average age of the country's population. Because this trend will impose an expanding number of dependent retirees on an ever-more constrained relative number of working-age people, it will have profound financial and economic repercussions. These will not, however, follow the disastrous outlines occasionally outlined in the media's simple extrapolations. On the contrary, the United States will almost certainly change to protect its prosperity, seeking ways to increase worker productivity, for instance, get more of the existing population to participate in the workplace, tap immigrants, and increase levels of trade and globalization. All should help this economy cope with its demographic imperatives. The effort will, however, require some wrenching changes in the structure of industry and in business practice, and these will inevitably create investment opportunities.

This is a big subject, too big for a single weekly website discussion. The plan is to cover various aspects of this matter in a series of weekly pieces, issued as immediate crises and contingencies allow. This first column will set the tone, describing the demographic imperatives facing the country, outlining the dangers they threaten, and indicating where the various responses fit into the picture of the longer-term future. More focused discussions of each response will follow.

This country's demographic problem has two roots. Increases in public health and tremendous advances in medical science have greatly increased life expectancies. On average, a baby born today in the United States can expect to live for almost 80 years. This is up from an expected 74 years in 1980 and an expected 69 years in 1950, effectively an almost 7% extension in life expectancy in the last 30 years and an almost 15% extension in the last 60-some years. At the same time, a drop in fertility rates has slowed the flow of young people into the workforce. In 1950, for example, the average American woman had 3.5 children in her lifetime. By 2010, according to Bureau of Census estimates, that figure had dropped to 2.0, barely enough to sustain the existing population.1

The confluence of these two trends will put the country into a predicament that it has never before faced. The proportion of people of retirement age, according to the Census Bureau, will grow from 12.8% of the population today to about 15% by 2020 and to about 20% by 2030. Meanwhile, because of the constrained flow of younger people into the workforce, the number working will fail to keep pace with this anticipated expansion in the dependent older population. The Census Bureau calculates that the number of working age available to support each retiree will fall from 5.2 today to 3.7 by 2020 and to only 3.0 by 2030. Fewer workers available to support a greater number of dependent retirees cannot help but force change on the economy and its financial markets.

Best known of these strains is the predicament faced by Social Security and Medicare. Contributions from existing workers will fall ever shorter of the growing demands of this enlarging retired population. But the impending insolvency of Social Security and Medicare are only part of the coming financial difficulties. Private savings will likely fall short of the flows needed to support other pension plans, those maintained by state and local governments in particular, but also private pension and retiree medical plans that have retained a defined benefit structure. These plans theoretically avoid the pitfalls of a pay-as-you-go system used by Social Security and Medicare by backing their obligations with pools of invested assets. But even these investment pools will have a harder time sustaining acceptable levels as reduced relative numbers of new workers slow the flow of contributions relative to the growing numbers of retirees drawing on the plan.

There is a third financial problem. As an even larger part of the population retires, they will tend to draw down on their savings and investments instead of adding to them. Such selling pressure could limit or even undermine the basis of long-term market appreciation. To be sure, this particular problem will not develop for some time, as the largest portion of the baby-boom generation is still in its fifties, with an increasing tendency to save and invest for some time to come. But over a longer time frame, as this portion of baby boomers passes into retirement, this financial threat will build.

If the economy could produce enough added wealth, these financial strains would be easily managed, but as it is, the demographic imperative also is likely to hold back the economy. The relative shortage of workers will, all else being equal, limit the economy's productive power, including its ability to provide the consumption and other economic needs of these retirees. It may be hard today, in the face of a huge army of unemployed, to envision a time when such a relative labor shortage exists, but it is important to realize that these are long-term trends, while today’s high unemployment, stubborn as it has been, is fundamentally a cyclical phenomenon. And if, as many suggest, unemployment stays high because of a mismatch between the skills the economy needs and those that exist in the workforce, the financial and economic burden on those reduced relative numbers working will become that much more unsupportable, as these workers will have to produce enough for themselves and their immediate dependents, the country's retirees, and also for those effectively unemployable because they lack needed skills.

A worsening relative shortage of working hands and minds, especially of those with the appropriate skills, will necessarily tend to limit the economy's raw production ability and so also its growth prospects. What is more, the shortage of workers will tend to raise wages, at least for those with certain skill sets, and to that extent, impair growth prospects, some research estimates by 10%.2 While that shortfall might have immediate ramifications in financial markets, more fundamentally it also will tend to deprive business of the wherewithal for capital spending. To that extent, matters will further impair growth prospects by constraining the main means by which business increases its productivity and its overall productive capacity. Some academic research estimates that these and lesser economic effects will tend to slow the economy's real growth rate by one-fifth. Other work suggests that in the absence of remedial efforts, this demographic pressure could reduce the economy's historical growth pace by two-thirds.3

Rather than accept such economic and financial hardship, there is every reason to expect the economy, even without central direction (perhaps especially without central direction) to seek remedies. One would increase productivity. With fewer numbers of workers relative to production needs, an increase in the average hourly output of each worker could cover some of the productive gap left by the demographic reality. Of course, the indicated profits shortfall and other financial strains will make such efforts more difficult. Perhaps a rising wage for skilled labor well provide a counterbalancing incentive for business to make the effort anyway. Along similar lines, the economy could cover some of the relative labor shortfall by increasing the population's participation in the workforce. Older people, for instance, might stay at work for longer. There is also a huge potential to increase women's participation. Even though during recent decades women have flooded back into the paid workforce, still only 70% of working-age women participate in gainful employment, compared with almost 90% of working-age men. The increased participation of either women or elders will necessarily involve greater flexibility on the part of firms, in order to, for example, change rules on hours, child support arrangements, and working conditions. The effort could ultimately alter the entire nature of the workplace.4

The economy also can reach overseas to remedy the labor shortfall implicit in its demographic predicament. Increased immigration is one obvious avenue, but to have the desired effect, the country will have to target those with the skills it needs. Even then, because immigration sufficient to bridge the entire relative labor gap will almost surely cause social tension, it cannot provide the entire answer. More potential lies with increased trade and globalization. By increasing imports, the country can effectively relieve its productive shortfall by tapping foreign labor even as it remains at home. Especially by relinquishing labor-intensive, lower value-added activities to less developed economies while concentrating more on high-value-added, capital-intensive activities at home, trade and globalization can answer just about all the needs of the labor shortfall implicit in the demographic trends. But such a shift will require another considerable revamp in the structure of the economy, more than has taken place already, and also ever greater efforts at training and education in the domestic workforce.

Subsequent pieces in this space will elaborate on the nature of each of those remedies, the alterations they will require in industrial and business practice, and, of course, the investment opportunities that will accompany those changes. Even with a separate discussion dedicated to each, the space allowed here can hardly do the subject full justice. That requires a much longer treatment. Still, it will offer a summary view.


* All the analysis presented here is draw from a new book, Thirty Tomorrows, forthcoming in April 2014 from Thomas Dunne Books.
1 Bureau of the Census, Department of Commerce.
2 David E. Bloom, David Canning, and Gunther Fink, "Population Aging and Economic Growth," working paper 31, Harvard Initiative for Global Health Progress and the Global Demography of Aging, April 2008.
3 Dick Kruger and Alexander Ludwig, "On the Consequences of Demographic Change for Rates of Return to Capital and the distribution of Wealth and Welfare," working paper 12453, National Bureau of Economic Research, August 2006.
4 Milton Ezrati, Thirty Tomorrows (New York: Thomas Dunne Books; forthcoming 2014).

RELATED TOPICS

ABOUT THE AUTHOR

The Investment Conversation

 

video

Our new blog features timely commentary and analysis from Lord Abbett experts. Join the conversation.

RELATED CONTENT