Bad news… Retirement savers with some (or all) of their assets tied up in a private pension could be facing a nightmare scenario sooner than expected.
Both public and private pensions have been in trouble for quite some time. But it appears private pensions are in the hot seat again. But this time, it’s not a self-inflicted problem…
Continue reading “Today, Private Pensions and Savers Face the Same Challenge”
We spend a lot of time talking about the public pension crisis because, well, it’s a massive $5 – $8 trillion dollar overhang on the economy and one which will undoubtedly result in some heartache for investors at some point in the future. Unfortunately, there are some problems that are too large for even U.S. taxpayers to fix and, with an underfunding of $52,000 (mid-point) per household, somehow we suspect this is one of them.
Of course, our nation’s various governmental institutions aren’t the only ones to have unwittingly created massive ponzi schemes from which there is no escape. In fact, as Bloomberg points out today, as of the end of 2016 over 90% of the top 200 corporate pensions in the S&P were unfunded to the tune of $382 billion.
Here’s a look at the funded status of the top 20:
Continue reading “Here Are America’s Most Underfunded Corporate Pensions”