With boomers aging into retirement, and many looking forward to public pensions as their chief source of income, there are surprises in store for a lot of them—because underfunding threatens the retirements they've worked so long and hard for.
According to 24/7 Wall St., "[e]very state has an underfunded pension." The question is how much are they underfunded—and with 10,000 Americans hitting that milestone of 65 every day, it's one that they need to ask if they expect to be collecting a pension when they retire.
According to the report, the smallest pension funding gap—the difference between a state's pension assets and its retirement benefit obligations—is no small number, at more than $335 million. Pension funding, it reminds us, "is largely a function of government policy, and failure by lawmakers to adequately manage risk, forecast return on investment, and budget for demographic changes can create large pension funding shortfalls."
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Marlene Satter
Marlene Y. Satter has worked in and written about the financial industry for decades.
