The Collapse of The Pension System of Old

In the good old days our parents and grandparents had a 3 legs of their retirement income stool to keep plenty of income coming in while in retirement.

Now we’re faced…out of necessity more than anything, to look for financial alternatives to provide for our retirement.

Why?

Simple the 3 legged stool is crumbling. Here’s the deal.

The 3 legged retirement was made up of
1. Pension plans from companies, governments, etc.
2. Social Security
3. Private Savings

Lets look at each one for a second.

1. Pensions from your jobs.
We’ve all seen these disappear over the years because they are so incredibly expensive for companies, and governments alike.

Elizabeth Warren, Law Professor at Harvard said:
“There’s no business in America that isn’t going to figure out a way to get rid of these benefit promises.”

and she was right. Just today in the Wall Street Journal Mary Walsh wrote

“Policy makers are working behind the scenes to come up with a way to let states declare bankruptcy and get out from under crushing debts, including the pensions they have promised to retired public workers.”

States across the country have over extended themselves, are in massive debt, and are looking for any way possible to get out from under it, and now like many of the large companies have already done, they are looking to avoid paying the pensions of past workers.

So the pension leg has long been broken, the next leg you probably already know is busted up is 2. Social Security.

Michael J. Astrue, the commissioner of Social Security Said in a letter recently
“In 2016 we will begin paying more in benefits than we collect in taxes. Without changes, by 2037 the Social Security Trust Fund will be exhausted and there will be enough money to pay only about 76 cents for each dollar of scheduled benefits. We need to resolve these issues soon to make sure Social Security continues to provide a foundation of protection for future generations.”

need I say more?

Depending on Social Security for retirement might not be the smartest thing to do either…

So that leaves us with the last leg; 3. personal savings.

We can cover this, and how to set yourself up to have a guaranteed income for life, that you can never outlive. Call us for a confidential appointment.

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