Pensions Are Slated to Bankrupt In 30 Years: How Will Retirement Look In the Future?
Reported by Marie S.
This is according to a report from the sloan center for Aging and Work at Boston College. Unfortunately, these responses may turn out drastically different in a few years.
Causing anxiety, especially to the retiring public, Bridgewater Associates, an investment portfolio management company, stated that 85 percent of pensions would go bankrupt in 30 years. This was their analysis after creating a simulation model to mirror different possible economic situations and the corresponding outcomes of each.
A sector of society which may largely contribute to these results are the millions of baby boomers who are retiring. The baby boomers are composed of those people born between January 1st, 1946 and December 31st, 1964. With the average retirement age at 65, their expected retirement years are at hand are 2011 up to 2029. For the next coming years, pensions are supposed to provide for these millions of retirees. But if Bridgewater is correct, many of our soon-to-be and even not so soon-to be retirees are facing imminent financial perils. According to the Employment Benefit Research Institute, 46 percent of Americans have less than $10,000 saved for retirement. If these were all in pensions, what would be left for our retirees who have toiled for so many years?
Hopefully the government can come up with a program that will be able to compensate for the possible upcoming disaster. Meanwhile, it may be wise for us to take a look at other possible investment options rather than pensions to provide ourselves with some future after retirement… while we still can.