Monday, May 4, 2009

That T-shirt

The T-shirt that says:
Live long enough to be a burden to your children
was supposed to be a joke.

It is suddenly not so funny.

http://globaleconomicanalysis.blogspot.com/2008/10/pension-time-bomb-explodes.html

http://zerohedge.blogspot.com/2009/03/more-on-1-trillion-state-pension-crisis.html


I know many people in the public sector who think their defined-benefit plans are "iron-clad" and that their benefits will never be cut and that they can retire at the age of 60.
They are in for a rude awakening. I can guarantee you that as the pension pandemic continues to wreak havoc on public finances, some very hard choices will be taken, including cutting pension benefits and raising the retirement age. This is why I think people need to start taking matters in their own hands and at the very least educate themselves about their investment choices.
Finally, a telling sign that global pension tension has reached a boiling point. According to Emily Brandon of U.S. News & World Report, a survey of Americans want pensions back as they are planning to retire:

Americans with shrunken nest eggs are feeling nostalgic for pensions. About half of those without a pension (55 percent), say the old-fashioned retirement plan would ease their money worries, according to a National Institute on Retirement Security survey. However, not all workers with pensions are sleeping soundly. Only about 65 percent of Americans with a pension are confident that the payout will be there at retirement.

http://pensionpulse.blogspot.com/2009/05/global-pension-tension.html

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