Posted on 02/27/2011 2:05:36 PM PST by FromLori
Just one in five U.S. pension plans has enough assets to meet obligations, a state of affairs caused largely by overly optimistic projections of investment returns that points to a range of possible scenarios, from changing benefits to pensions going broke, according to a study from Cogent Research.
About 54 percent of public pensions say their current funding status is below 80 percent of what is necessary to meet their obligations, and 16 percent of the pensions are below 60 percent of what they’ll need, according to Cogent’s “Institutional Investor Brandscape” study.
This shortfall is even more acute among the largest pensions, and especially among union and public sector plans, where only 10 percent and 12 percent of them, respectively, estimate their current funding status is 95 percent or higher.
“These are very sobering numbers,” Christy White, the report’s author and a principal at Cogent, said in a press release.
(Excerpt) Read more at indexuniverse.com ...
lol where goes the money????
Taxpayers get to bailout EVERYBODY!
And the selfish bastards better STFU about it and pay!
We know that SS is 100% non-funded and that the liabilities are about %60 trillion.
They want us too and it always worry’s me thinking of that too big to fail bs
Illinois may seek federal guarantee of pension bonds
“Very sobering numbers,” indeed.
And in the end, responsible taxpayers who have worked hard and saved for their own retirements (including not counting on SS at all), will get screwed yet again. Which begs the question, why not just be a spendthrift and have no assets to seize? Big Brother would take care of me, but not somebody who works for a living. It’s insane.
We did all that saved our money, have a pension plan we paid into for 39 years, paid off our house. It’s maddening my hubby just retired last year and I ask myself that once in a while especially lately. My daughter was telling me about her renters and how they pay nothing, NOTHING when they have a medical procedure they are on whatever they call the state plan these days. Here we are we now pay $1,020 a month for the two of us for our medical insurance and have deductibles to meet. His ankle surgery we paid at least $1,800 of it. Yet we have to continue paying taxes even retired for others programs.
I work in a hospital (small city, not urban), and it seems like we rarely admit someone who has a job anymore - the ones not ALREADY on disability are applying for it as if it’s the holy grail and have no sense of shame, just one of entitlement.
It can’t end well - Other People’s Money (ours) will run out, so WE will be screwed and the entitled crowd with no true disability and time on their hands will be as angry as the Commies in WI and won’t even need a fake work excuse!
Great plan.
Subsidies, whether received by government entities or others sustained in monopolies by government, raise prices.
This is frightening.
Despite the relatively rosy picture in the corporate sector, Cogent principal John Meunier believes the underfunding may be worse than the study depicted.
“Underlying current funding status estimates are performance projections that for many institutions may be overly optimistic,” Meunier said in the press release.
I have no doubt that the underfunding is worse than predicted. This coming crisis has been predicted for decades. The only people who are going to do well are management and I'm not talking about middle management.
****We know that SS is 100% non-funded and that the liabilities are about %60 trillion.***
Say it ain’t so! Don’t you trust your government promises?
http://www.ssa.gov/history/ssa/usa1964-2.html
Self-Supporting
“The program is designed so that contributions plus interest on the investments of the social security trust funds will be sufficient to meet all of the costs of benefits and administration, now and into the indefinite future—without any subsidy from the general funds of the Government. Both the Congress and the Executive Branch, regardless of political party in power, have scrupulously provided in advance for full financing of all liberalizations in the program.”
And here is where your money went! Read and weep!
http://www.socialsecurity.gov/OACT/ProgData/fundFAQ.html#n4
Money was never there. The state or whomever put money into the fund and assumed it would grow at 8% or some number like that. When it doesn’t make the returns a gap forms taking funding down from 100%. Multiply that by 20 or 30 years.
ahh but wait..brokers say history show the market has always made more money for you than saving account. you can’t lose.
Over really long periods of time its true. We don’t have a 100 years to save however.
I think thats all over now. not many have 100 years to find out.
I think thats all over now. not many have 100 years to find out.that used to be a 20 year trend( not 100)
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