Full-Fledged U.S. Pension Crisis
HardAssetsAlliance.com, June 14, 2017
There’s no way US pension funds can keep their promises to the next wave of retirees.
Right now, millions of Americans are hard at work believing their pensions will be their saving grace for retirement.
But the predicament pension funds across the United States find themselves in does not just spell trouble for the distant future. The crisis is happening as we speak.
Even though the facts are on the table, state and local governments continue to underestimate the crisis at hand. Almost every state or local government has an unbalanced budget — due to runaway pension fund costs that are continually chipping away at already inadequate budgets.
Total unfunded pension liabilities have reached $3.85 trillion. That’s $434 billion more than last year. Amazingly, of that $3.85 trillion, only $1.38 trillion was recognized by state and local governments.
Massive financial market losses in 2000–2001 and 2008–2009 led many pension funds to invest in high-fee and higher-risk alternatives such as hedge funds and private equity. But this strategy only exacerbated the funding gap over the past decade, failing to deliver expected returns.
The facts clearly show that the states’ pension systems are on a losing track and retiree benefits are at risk of being slashed.
The looming pension fund crisis could leave already cash-strapped Americans without a safety net for retirement.
The worst-funded US state is currently New Jersey, closely followed by Kentucky and Illinois. By the end of 2016, New Jersey had a $135.7 billion deficit in its pension funds—$22.6 billion more than the year before—while Illinois’ gap grew by $7.6 billion.
This disturbing trend is all too real, with nearly one million US workers and retirees covered by pension plans on the verge of collapse. As GDP growth remains minimal, the situation is less than ideal for those who are depending on these pensions for their golden years. And with the uncertain future of Social Security and Medicare hanging in the balance, it’s a scary thought that for many Americans, even this promised safety net isn’t guaranteed.
Corporate pensions, too, are in the worst position to meet obligations in more than a decade. Suffering from deficits due to an overallocation to long-term bonds with diminishing yields, corporate pensions are struggling to meet their ever-increasing obligations.
Между тем, здешние политиканы, «эксперты», подконтрольные ЦРУ СМ»И» продолжают нахваливать псевдодемократическую Америку.
Те, кто любит «наших американских партнеров», «забывают» о грязных, злых уродах США.
О таких монстрах, как коварный и крайне опасный мошенник, расист, лжец, и убийца Дональд Трамп. И о таких, как порочный Конгресс США, фашистские ФБР и ЦРУ, лживые американские СМ”И”…
Арнольд Локшин, политэмигрант из США