Canary in the coalmine: Pensions

[TexasFreedom]

Ouch. Read this article, the whole thing:
http://www.cbsnews.com/news/slashed-pensions-another-blow-for-heartland-workers/

One ironworker started at 19 years old, worked 36 years getting $3600/mo in pension. That fund like many is collapsing, his just got cut to $1600/mo. That is a 56% pension cut. Another guy went from $2500 to $930/mo, a 63% pay cut. How do you live on $930/mo? And that assumes insurance is covered... $300 food, $300 utilities/phone, $300 incidentals (gas, car insurance, toilet paper...). Nothing left for rent or property taxes or replacement car / etc. $2500 is very possible, but $930?

I've never been a fan of pension plans, it puts your golden egg of retirement in the hands of someone else. I'd rather create my own savings and take care of myself. If I mess up, that's my problem. And note one word used over and over in the article is "unions".

It ends with more bad news:
In the meantime, several states' public pension funds are running dry, including Illinois, New Jersey and Connecticut. "This is going to hit everyone," predicted Overstreet, "public employees, too."

 

[Arcticdude]

Ouch. Read this article, the whole thing:
http://www.cbsnews.com/news/slashed-pensions-another-blow-for-heartland-workers/

One ironworker started at 19 years old, worked 36 years getting $3600/mo in pension. That fund like many is collapsing, his just got cut to $1600/mo. That is a 56% pension cut. Another guy went from $2500 to $930/mo, a 63% pay cut. How do you live on $930/mo? And that assumes insurance is covered... $300 food, $300 utilities/phone, $300 incidentals (gas, car insurance, toilet paper...). Nothing left for rent or property taxes or replacement car / etc. $2500 is very possible, but $930?

I've never been a fan of pension plans, it puts your golden egg of retirement in the hands of someone else. I'd rather create my own savings and take care of myself. If I mess up, that's my problem. And note one word used over and over in the article is "unions".

It ends with more bad news:
In the meantime, several states' public pension funds are running dry, including Illinois, New Jersey and Connecticut. "This is going to hit everyone," predicted Overstreet, "public employees, too."

Interesting article. I personally have always felt that it's a mistake to depend on any type of pension for your retirement. Too many things can go wrong over a period of 20-40 years. Due to the nature of my past career I've had several company paid pensions. Whenever I'd leave a company I'd take my pension in a lump sum payout and invest it myself. Never lost a penny. I guess I just don't trust a company, and certainly not the government, to handle my future.