This article was submitted by Addison Quale, SchiffGold Precious Metals Specialist. Any views expressed are his own and do not necessarily reflect the views of Peter Schiff or SchiffGold.
You know the old saying. ‘There’s a sucker born every minute.’
Sadly, many Americans have been suckered into thinking their pension was going to provide a stable and comfortable retirement. But government mismanagement and central bank monetary policy are quickly turning that retirement dream into a nightmare.
Pensions have been a major contributor to the Greek financial crisis, and theAmerican system is looking increasingly Greek.
Just last week, Central States Pension Fund, one of the largest pension funds in the nation, filed an application to cut participant benefits. Central States handles retirement benefits for current and former Teamster union truck drivers across various states including Texas, Michigan, Wisconsin, Missouri, New York, and Minnesota. And in Illinois, pensions are underfunded to the tune of $111 billion.
This is not just an American phenomenon. A UK pension fund is also having serious issues and is slashing benefits.
For years, many large companies, and especially government employers, have promised their workers generous pension plans. They were told that with modest annual contributions coming out of their paychecks and employer matching funds (not to mention some taxpayer money thrown in) they were guaranteed to retire with a steady stream of passive income.
This post was published at Schiffgold on APRIL 27, 2016.
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