Pension Crisis Ahead: Why Public Employees Should Think About a Golden Nest Egg Now
THEDAILYCOIN.org
MARCH 31, 2017
75.4 million Baby Boomers in America—about 26% of the US population—have reached or will reach retirement age between 2011 and 2030. And many of them are public-sector employees.
In a 2015 study of public-sector organizations, nearly half of the responding organizations stated that they could lose 20% or more of their employees to retirement within the next five years.
Local governments are particularly vulnerable: a full 37% of local-government employees were at least 50 years of age in 2015.
Seeing those numbers, it is no surprise that public pension funds are completely overwhelmed.
They’re facing two major problems: a severe rise in the old-age dependency ratio and dwindling investment returns.
According to a 2015 study from the National Association of State Retirement Administrators (NASRA), public pension funds are around $1 trillion in the red.
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