Pension Train Wreck Coming

I have been reading a lot lately about the pension crisis. I doubt that Obama has an evil plot to steal your pension, 401K or your IRA. It has to be admitted that this has happened in several countries, most recently Poland. The way the scam works is that assets are seized and replaced with government bonds to "protect" the saver. 

The size and nature of the crisis depends on what you are talking about. Most of us Baby Boomers have little or no savings. This is not good. Social Security is underfunded and will force a 25% cut in pensions in 25 years or so. This is bad. Medicare is also underfunded and will run out in 15 years. No one has any idea what this will mean. This is very bad, especially as I will probablyly still be alive then. State government pensions are a mess. They are hugely underfunded, and have absurd assumptions about future investment income. This is very, very bad for retired government workers. 

Making the pension problem even worse is the looting of the system through excessive fees to the "powers that be." Rolling Stone Magazine has had some interesting articles on economics. Thier most recent article about Pensions is no exception to this. I suggest you have a look. 

How will this play out over the next decade? I have no idea, but I suggest you get your financial house in order.