Wednesday, August 21, 2013

Answer to pension woes that plague the US

Nobody wants to see the elephant in the living room --

Pandemic of pension woes is plaguing the nation: ". . . . But even as the economy and housing markets have recovered, most states are still falling behind in closing their pension funding gaps. In the last year, 34 states have seen their pension funds stretched further as they've failed to make the full contributions needed to meet the projected cost of retirement promises. . . . Nine states—Hawaii, Alaska, Kansas, Rhode Island, New Hampshire, Louisiana, Connecticut, Kentucky and Illinois—have now set aside less than 60 percent of what they need. Illinois has saved just 43 cents to cover every dollar of what it needs to pay 350,000 retirees and 500,000 current plan participants who are counting on a pension check. In Detroit, city officials argue that pension payments to retirees simply have to be cut because the money just isn't there to pay them. But union officials there and in other cash-strapped cities say that's the city's problem. . . . Without a pension check, public sector workers face a bleak retirement. Many are ineligible for Social Security. . . ." (read more at the link above)

What's the Answer? Put everyone on Social Security (and expand benefits), abolish all pension programs, allow individuals to have (in addition to social security) one self-funded, federally-approved and guaranteed, retirement account in a federally supervised financial institution into which each individual can deposit up to 10% of each year's earnings (tax-sheltered and immune from third-party garnishment).


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