Retirement Crisis Ahead In The U.S., It Won’t End Well

Retirement for Many Americans Could Be in Trouble

If you are close to retirement or saving for it, you better pay close attention to all that’s happening these days. Retirement for many Americans could be on the line.

I can’t stress this enough: there’s a massive crisis in the making in the U.S. economy when it comes to retirement and no one seems to be paying attention to it. There could be severe consequences in the coming years.

Advertisement

The soaring stock markets aren’t pricing in this risk, politicians don’t seem concerned, and mainstream economists aren’t bothering to look at it.

Understand this reality: pension funds across the U.S. don’t have enough money; they have massively unfunded liabilities. Putting it in even simpler words, they don’t have the money that they promised to those who contributed.

It’s not just the state and municipal pension funds that are struggling with this conundrum.

Private pension funds are going through the same problem.

117 Pension Funds Are “Critical and Declining.”

Here’s some perspective on private pension funds.

According to a study by Cheiron, Inc.—a firm that advises public employers, multi-employer pension plans, non-profit organizations, and corporations—about 117 multi-employer pension plans that have about 1.4 million participants are underfunded by $56.5 billion. (Source: “Cheiron Study finds 117 multiemployer pension plans may fail within 20 years,” PR Newswire, December 17, 2019.)

Here’s the kicker: these pension funds have already told regulators and participants that they may fail within the next 20 years because they don’t have enough money for the full promised benefits.

Cheiron, Inc. says the financially distressed multi-employer pension plans are in a “critical and declining” phase.

Why are these pension funds struggling? Cheiron blames the underfunding of multi-employer pension funds on the Great Recession, industry deregulation, a smaller unionized workforce, and employers exiting due to bankruptcies or just simply withdrawing.

1 2
View single page >> |

Disclaimer: There is no magic formula to getting rich. Success in investment vehicles with the best prospects for price appreciation can only be achieved through proper and rigorous research and ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.