A Retirement Crisis Is Brewing, But It Continues To Get Ignored

Retirement for Many Americans Could Become Awfully Difficult

You probably won’t hear much about it in the mainstream media, but there’s a retirement crisis brewing in the U.S.

It continues to get bigger, and very little attention is given to it. Mark my words, as the retirement crisis gets even bigger, many Americans’ retirements could be on the line.

retirement crisis

These days, the mainstream media seems to be too concerned about what happens with hot stocks, and investors are too busy debating whether cryptocurrencies like Bitcoin are the future. In the midst of all this, don’t overlook what’s happening at pension funds around the U.S.

As it stands, a large number of pension funds are severely underfunded. In other words, they don’t have enough money to pay out the people who have been contributing for the future.

City-run pension funds around the U.S. don’t have enough money. State-run pension funds are struggling. Multiemployer pension funds are at critically low levels.

Imagine what will happen if you’ve been contributing to a major pension plan for years, and when you reach your retirement age, you find out you’ll only get a portion of what you had contributed.

$6-Trillion Pension Gap: Who Will Pay?

Here’s are few numbers that you shouldn’t forget.

In 2018, the 50 state-run pension funds had a funding gap of $1.2 trillion. These pension funds only had 71% of the assets needed to pay their future benefits. (Source: “The State Pension Funding Gap: 2018,” The Pew Charitable Trusts, June 11, 2020.)

There isn’t more recent data available, but it wouldn’t be shocking if pension funds’ unfunded liabilities have grown since then.

Looking from a bird’s-eye view, according to the American Legislative Exchange Council, which looked at more than 290 state-administered public pension plans in recent years, the unfunded liabilities stood at almost $6.0 trillion. (Source: “Unaccountable and Unaffordable 2018,” American Legislative Exchange Council, last accessed March 23, 2021.)

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