America’s underfunded pension system is “not a distant concern but a system already in crisis”...
Tax may explode as governments seek to bail out insolvent pension plans
Illinois, California, New Jersey, Connecticut, Massachusetts, Kentucky and eight other states vulnerable
The simple mathematical mismatch at the heart of the pension crisis...
Why the pension crisis really is “America’s silent crisis”...
Pensions timebomb confronts Ireland, UK and most EU countries
By Brian Maher, Managing editor, The Daily Reckoning
"This is going to be a national crisis..."
“This” being America’s woefully underfunded pension liabilities, according to Karen Friedman. She’s the executive vice president of the Pension Rights Center.
(A place called the Pension Rights Center does in fact exist. We checked.)
MarketWatch columnist Jeff Reeves howls in confirmation that “collapsing pensions will fuel America’s next financial crisis.”
“This is not a distant concern,” warns he, “but a system already in crisis.”
According to data supplied by the Federal Reserve, pensions — public and private combined — were roughly 27% underfunded at the end of last year.
By some estimates, America’s public pensions alone are sunk in a $6 trillion abyss.
The issue, approached from any direction, is an impossible knot… a tar pit… a minotaur’s maze of blind alleys and dead ends.
How has the American pension come to such an estate?
Most public pension systems were built upon the sunny assumption that their investments will yield a handsome 7.5% annual return.
But consider…
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6 comments:
If Pensions of government retirees go under then no Politian will get their pension. I would like to see the Politian punish themselves equally, since they are the ones screwing up. Just ask a MD State Retiree about the Politians robbing their retirement fund and not replacing the money they stole or the elderly getting their SSI cut or getting less while the whole time the Politians are constantly robbing SSI without replacing the money they are stealing while they get their pension from past Presidents till present.
WE cannot trust our Government!
Keep in mind, the stock market is at unrivaled huge heights (dizzying heights) and if the funds are under water now, then imagine what will happen when an inevitable stock market correction takes place! Crazy.
The governments made promises that they could not keep.
If we cut the ridiculous amount of "foreign aid" we send overseas on our own people to subsidize health benefits and retirement, there would be no problem. Billions and billions going who knows where - some despot, some dictator, some political reason - billions, folks.
Cut our foreign aid in half, eliminate the United Nations money we pay each year and we might be catching a break.. ..... just my humble opinion. The Kilbirnie Kid
8 years of obama was enough to shame and destroy our economics in the country , he should be locked up for treason or better yet a firing squad , I would love being the first to pull the trigger.
All the private pensions will go bankrupt, or be phased out by the corporations. As to the public pensions, they will continue to be funded with tax dollars, and our corrupt politicians will sell it as "a promise" made to the government employees. Votes bought with tax dollars, that all it is.
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