This sort of thing happens in government employee-land all the time.
“Let others plan their future, I’m busy loving you…Sha la la…Live for today…”
Saying that, it’s not like we Gen Xers and Millenials are doing a bang up job either.
Destined to fail from the beginning. We need to figure this out and make difficult choices.
Look, I think there should be a phase out of the old system over say 10 years.
Older people have made calculations with the idea that Social Security would be there forever as it is now. Most people are not economists. They just did their thing in their working life and then retired as they were told they should. If we are going to change social security we should be sensitive to this very important (and very political) point.
The “windy city” actually refers to its politicians.
The municipal pension burden in many big cities in the US is massive. In Chicago, long a haven for the unionized city workers, this is especially so. Who needs police anyway? Chicago’s not a war zone or anything. Spend the money on city retirees. Just because everyone knew that the pension contracts which were signed by unions and politicians were completely undoable years ago, I mean everyone knew this,
Well I guess the $1 trillion omnibus bill was the last gasp for this Military Industrial Complex advocate.
This is a pretty interesting series from CNBC. What many people still do not understand is that the obligations of localities to public pensioners won’t be paid, because they can’t be paid. Politicians in the past made promises which they knew couldn’t be kept, and the public employee unions just took whatever they could (which is what a union is supposed to do I guess).
More real life tales of economic woe in Illinois, from The Illinois Policy institute.
This is why many people really don’t mind if the government is “shut down.”
These are annual pensions. The workers are retired. They contribute little if anything to the state of Illinois at this point. And most of these folks probably retired in their 50s, some probably before that.
Stalin the butcher smiles.
This is disheartening as Poland appeared until very recently to be on the fast track to legit 1st tier European status. Sadly it has just taken a big step off of this track.
By N. Yakovlevitch
Does Detroit filing for bankruptcy indicate that the decades of corruption and can-kicking in America’s municipal governments have finally caught up with us? I don’t think most Americans understand just how serious this is and just how much it matters to their daily lives – even if you live nowhere near Detroit.
More and more people are raiding the 401(k) these days to get by. The rise in the forth quarter was remarkable.
Hey, life isn’t fair. But we have got to do something about Social Security and the coming debt bomb.
Of course most seniors don’t consider Social Security theft, and the headline above is intended to be inflammatory, however the Social Security system we have now is completely unsustainable. It hurts many who are just struggling to make it in an economy which is very different from the rising tide many retirees experienced over the past half century.
CalPERS is the largest retirement fund in the world, currently valued at over $380 billion. It provides pensions for California’s army of government workers, and it is killing the state.
There is an adage in the financial advisor world—go after money in motion.