The End of Pensions
The New York Times, October 30th, 2005
The New York Times provides a good overview of what is happening with Pensions in the US in this article.
- Why they are going away:
"For the U.A.W., Miller noted forlornly, "30 and Out" - 30 years to
retirement - became a rallying cry. Eventually, the union got what it
wanted, and workers who started on the assembly line after high school
found they could retire by their early 50's. "These pensions were
created when we all used to work until age 70 and then poop out at 72,"
Miller told me. 'Now if you live past 80, a not-uncommon demographic,
you're going to be taking benefits for longer than you are working.
That social contract is under severe pressure.'"
- How public pensions are in worse shape and represent and even bigger problem for taxpayers than private pensions:
"According to Barclay's Global Investors, if you use realistic
assumptions, the total underfunding in all public plans is on the order
of $460 billion. If this figure is even close to true, future taxpayers
will be hopelessly in hock to the police, firefighters and teachers of
the past."
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