We have beaten the drum for years, here at the blog.
Pension security is nothing more than a math equation. Whether you’re talking about private pension plans, multiple employer pensions, or the grandadday of them, Social Security, you cannot continue to pay existing benefits without bankrupting the fund. It’s simple math.
It’s emotional, too. Especially if you’re passed your optimim working age, and have made your financial plan using the rules at hand. It’s not like you can just jump back into the workforce. This is a situation that we Baby Boomers are going to have to face, and overcome if our retirement years are anything like we desire.
And now, one of the nation’s largest private pensions is crying uncle. Uncle Sam, that is. they have applied to the US Treasury for a waiver of the rules, allowing them to reduce their pension payments. Significant reductions:
“This is going to be a national crisis for hundreds of thousands, and eventually millions, of retirees and their families,” said Karen Friedman, executive vice president of the Pension Rights Center.
It’s the math. You can argue with me all you want, but it doesn’t change the math. Time to get busy, folks. Nobody is going to do it for you.