Which is the Next Pension Plan that will Fail?
With financial collapse of Detroit, it naturally makes sense to wonder how safe pensions are from a City or a State. MarketWatch recently reported on the condition of pension plans throughout the U.S.
- “The gap between the promises states have made for public employees’ retirement benefits and the money they have set aside is now a staggering $4.1 trillion, or $13,145 per capita, according to a recent research report. And combined, state public pension plans are just 39% funded, according to State Budget Solutions.”
- Source: http://www.marketwatch.com/story/10-most-threatened-state-pension-plans-2013-09-13
- “Illinois is the most poorly funded state in the US. It has assets of $91.5 billion, liabilities of $378.5 billion, and an unfunded liability of $287 Billion.”
Illinois has only put in a bit less than 25% of what they need to in order to pay off all the retirees benefits in the plan. Given the state of the economy, one would be wise to assume some changes are coming to the State of Illinois retirees!
Illinois is not alone. Rhode Island, Kentucky, North Dakota, and Hawaii are also included in the top 10 worst states. Click this link to read the article in further detail http://www.marketwatch.com/story/10-most-threatened-state-pension-plans-2013-09-13
Fortunately, Nevada is not on the list. Even though it's not, you would be wise to visit with a Retirement Planning Specialist to make sure you have an affective retirement plan.