Why You Should Care About Government Pensions

  • Bankrate recently did a fascinating article titled: Shining a Light on Government Pensions. It pointed out that many of the promises that various city, state and the federal government have made haven't been properly funded. Estimates are that they'd need somewhere between $1 and $3 trillion to be fully funded! 

     

    You may be asking yourself why you should care. Isn't the government already trillions of dollars in debt and it doesn't seem to affect me. Here's why. 

     

    If you're a teacher, fire fighter, police officer, work for any government agency what's been promised to you may not be there when you're ready to retire. Ask government pensioners who worked for the city of Detroit. 

     

    And, if you don't depend on a government pension, you should still be concerned. Because the only way that these promises can be kept is by taking your future taxes to pay for them. That means either higher taxes or less money for current services. Many cities are facing this problem now. Chicago's school system is a prime example. You can read about it here

     

    Private pensions can be at risk, too. Many retired teamsters are facing a cut of roughly 50%. Teamsters cuts

    So what can you do? Find out if the pension that's promised to you is fully funded. If not, contact other who, like you will be dependent on it. Demand that it be fully funded. Ask the politicians who are running for office if they think that it's important to keep their promises on pensions. If they say 'yes' ask them what they're doing about fully funding pensions now. 

     

    It's terrible when a retired teamster or Detriot police offer is told that their retirement is being cut. They made plans based on those promises. The time to correct the problem is before it becomes a crisis. 

     

    Keep on Stretchin' those Dollars!

    Gary


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