85% of Pensions Will Go Bust...

[Justin Bilyj]

The study estimates that public pension funds will earn an annual return of 4% or less in the coming years due to near zero percent interest rates and financial repression. That, in turn, would cause bankruptcy for 85% of the pension funds within 30 years, the study warns.

Pensions 'Timebomb' - 85% of Pension Funds Will Go Bust | Zero Hedge

 

[Rearden]

The study estimates that public pension funds will earn an annual return of 4% or less in the coming years due to near zero percent interest rates and financial repression. That, in turn, would cause bankruptcy for 85% of the pension funds within 30 years, the study warns.

Pensions 'Timebomb' - 85% of Pension Funds Will Go Bust | Zero Hedge

And naturally, the political system will ignore the problem until it's in crisis mode (29.9 years from now).

Then they'll be coming after your hard-earned retirement to make up for decades of unrealistic promises.

 

[Norwayguy]

The study estimates that public pension funds will earn an annual return of 4% or less in the coming years due to near zero percent interest rates and financial repression. That, in turn, would cause bankruptcy for 85% of the pension funds within 30 years, the study warns.

Pensions 'Timebomb' - 85% of Pension Funds Will Go Bust | Zero Hedge

Yeah but many of those pension plans are for governments with the ability to tax.

 

[Rearden]

Yeah but many of those pension plans are for governments with the ability to tax.

Thank God the authorities still have popular votes to work through.

"Read my lips -- no new taxes!" ring a bell?

 

[Norwayguy]

Thank God the authorities still have popular votes to work through.

"Read my lips -- no new taxes!" ring a bell?

Oh it certainly does ring a bell. I live in a state with a public employees pension that is underfunded. I wonder when the screwing will start and who will be the main screwee. Will it be the employees who as much as we complain about unions did nothing wrong their union reps negotiated a contract that the state allowed to be put in force but did not fund the retirement fully. Or will it be taxpayers that take it in the chin to make up the shortfall.