The upcoming pension crisis

a reply to: JAGStorm

Union means nothing they have unfunded liabilities as well

originally posted by: Fools
One of the reasons why as I get older I am glad I am in my own IRA and 401k. If it fails it is my fault for not properly managing it.

This isn't a good system though because not everyone is going to make the right choices. That's a good way to ensure you have a huge portion of the population that is unable to retire. Retiring shouldn't be a benefit that only the financially savvy should have access to.

originally posted by: Fools
So whos paying the unfunded pensions?

Depends on how you count it. Unfunded liabilities don't always mean the money isn't there. It means that the money hasn't yet been collected. If you have $1 billion in outlays over the next 10 years, you have $1 billion in an unfunded pension, but that's not an issue if you are going to be collecting $100 million/year over the next 10 years to pay for that.

The issue is when you don't have income coming in to replace it.

I think it varies on the state. I wonder how many public sector pensions are under funded? Probably many of them.

Pretty much every single pension plan is either unfunded, on the verge of collapse, or will collapse in coming years. It's simply not a sustainable model.

I mean how much unfunded pension portfolio's have gone into the black since the Trump explosion on the market?

None. The best investment vehicle is an unmanaged index fund. Those have gone roughly nowhere over the past two years, not even keeping up with inflation.

originally posted by: Aazadan

originally posted by: Fools
One of the reasons why as I get older I am glad I am in my own IRA and 401k. If it fails it is my fault for not properly managing it.

This isn't a good system though because not everyone is going to make the right choices. That's a good way to ensure you have a huge portion of the population that is unable to retire. Retiring shouldn't be a benefit that only the financially savvy should have access to.

It seems I need some time to review. How many tentacles have worked themselves into the hard work of everyone? I have no idea.

I never trusted any of that. I save and scrimp on my own. As does all of my family, with the exception of my wonderful and beautiful wife.

And sadly, even she is frightened, but trusting. I think Missouri gets a D - at least not an F. but I dont know - nor does she thanks to the NEA - what the grading scale is.

So she just hopes it will be there in 7 years from now. And frankly so do I, I am good for my retirement, but not mine times 2. I mean we will do what we need to do, but it is kind of amazing.

The state workers in calif will get there Pensions as long as the democrats stay in power in calif.
This setup is the reason the calif state employees unions are so powerful.
But the problem is many of these state employees retire and move out of state because of the high taxes in calif.

Even more republicans leave the state because of the laws and high taxes.

Soon you will have few tax payers in a state with a lot of illegal that don't pay much taxes.

originally posted by: Metallicus
Pensions are antiquated and should have been done away with decades ago. You won’t find pensions in the private sector because they are financial black holes and a threat to company liequidity. Only public sectors still try to pass off pension scams.

Glad you're not running my public sector pension plan. I paid into it for 30 years, the employer added to it, invested the funds, and in a couple of months pay-out time commences. People forget that employer contributions are deferred wages, and agreed upon as such in contract negotiations. Jeez...I love being a Union Thug.

a reply to: sine.nomine

Mine too. I get a tiny pension from a company I worked for in NY when I was in my twenties and early thirties. Its with the Teamsters Union. All okay. Of course Im not living on it either. It may pay the cable/ internet/ phone bill and a few utilities but its not keeping a roof over my head or feeding my husband and myself. Of course I wont turn it down either nor will I turn down my social security even though I planned for and fully funded my retirement.

a reply to: ANNED

What you described is Illinois to a T. Like exactly.
Watch Illinois and see how California will fare, .....not good.

Upcoming pension crisis ... really ? I only have 1 question to ask the EU ... what if Putin is fooling you ? yeah ... I know, it never happened before ! Sure!

He'll leave office in 2024, and a new president will be elected. What if the new guy says ... oops that was a mistake by the former administration and removes the 2026 and 2034 dates, leaving retirement age "almost unchanged" ?

What if in Russia they end up figuring out first that late retirement is actually a problem for the absorption of younger workforce , which in turn leads to lower competitiveness and higher than needed unemployment ?

What happens then in the EU ? 68 y.o. guys sitting at the office and paying unmentionable taxes, while 30 y.o. are at their "still employed" parents home ! That will be fun to see ...


Or is the EU thinking that working people should pay pensions for illegal migrants ....