Future Of Pensions

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Nichoman's picture
Nichoman
Status: Gold Member (Offline)
Joined: Nov 1 2008
Posts: 422
Future Of Pensions

Davos included an article today about pension viability.

It's been on my mind, and agree its a concern not taken seriously enough by many w/r/t future changes.

Interested in hearing others thoughts about...

1.)  When will see current and future pensions impacted?

2.)  The scope and breadth of impacts individually and to society?

3.)  Realistic reductions that can be expected for those who are or legally scheduled to receive pensions.

Here's my take...

1.)  If/when financials drop another 40-50 percent and stay there a few months...significant to widespread impacts on viability of most pension funds.   Personally can see this within 6-12 months.  Maybe earlier.

2.)  Major impacts to economy and individuals...add to social problems.   Possible significant social unrest. Add Social Security and Medicare synergies...future of nation states?

3.)  Rough calculations did for myself...if did correctly (WARNING: not an accountant) seems based on using another 40-50 percent fall and if economy barely grows next 10-20 years.   Current and future pensions could, again in my estimation (which very easily could be partially, if not mostly wrong) could be reduced by 50-67 percent if not more.    This suggests "retirement" will only apply to a very few. 

From readings...only a small minority are mentioning, if not addressing this. 

Others may have more experience or information but shouldn't these issues and concerns be pursued for education and awareness.

Thanks,

Nichoman     

  

 

gyrogearloose's picture
gyrogearloose
Status: Platinum Member (Offline)
Joined: Sep 8 2008
Posts: 549
Re: Future Of Pensions

Nearly 20 years ago it was clear to me that due to the current (then ) demographic data that I was not going to get New Zealand's "superannuation at 60 like it was at the time. Fast forward 10 years, 60 raised to 65

On the cards next is "asset testing" where if you own a house say, you get a much reduced pension.

Then if you are a beneficiary of a trust, the trust assets will be counted they are your assets etc......

Then further on, if you have children even remotely capable of looking after you, they will be "forced" to

In other words the responsible will be punished yet again.

 

cheers Hamish

 

Thomas Hedin's picture
Thomas Hedin
Status: Platinum Member (Offline)
Joined: Jan 28 2009
Posts: 815
Re: Future Of Pensions

Davos included an article today about pension viability.

It's been on my mind, and agree its a concern not taken seriously enough by many w/r/t future changes.

Interested in hearing others thoughts about...

1.)  When will see current and future pensions impacted?  They already are being impacted, and in a short period of time, the majority of pensions will be without a mechanism to pay them, UNLESS we get some debt free, tax free money entering the system.

2.)  The scope and breadth of impacts individually and to society?  I made a two part video series showing the end result for a society.  It can be viewed here.  Did you know that Rome used a debt money system that operated the same way ours does?

Part 1 

Part 2

3.)  Realistic reductions that can be expected for those who are or legally scheduled to receive pensions.  How about we start focusing on the root cause of all of these problems and do something to fix them, rather than lay down and think they are inevidable.

Here's my take...

1.)  If/when financials drop another 40-50 percent and stay there a few
months...significant to widespread impacts on viability of most pension
funds.   Personally can see this within 6-12 months.  Maybe earlier. Unless we change how money is put into circulation, this is going to affect a whole lot more than just pensions.

2.)  Major impacts to economy and individuals...add to social
problems.   Possible significant social unrest. Add Social Security and
Medicare synergies...future of nation states? In every other country that this monetary system has gotten into it completely destroys it.  Remember Rome?  They had the exact same money system.  On this blog you can see what the Roman senators had to say 1900 years ago. 

http://www.moneyaswealth.blogspot.com

3.)  Rough calculations did for myself...if did correctly (WARNING: not
an accountant) seems based on using another 40-50 percent fall and if
economy barely grows next 10-20 years.   Current and future pensions
could, again in my estimation (which very easily could be partially, if
not mostly wrong) could be reduced by 50-67 percent if not more.   
This suggests "retirement" will only apply to a very few. From my math, it shows that we have reached the end of the life cycle on this money system.  At the end of 2008 the interest alone on the total debt was greater than the total consumer income.

From readings...only a small minority are mentioning, if not addressing this. I agree 100%.  What we really need is for everyone to start addressing the ROOT CAUSE of all of our finacial problems.

Others may have more experience or information but shouldn't these issues and concerns be pursued for education and awareness.

Thanks,

Nichoman  

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
Re: Future Of Pensions

"Nearly 20 years ago it was clear to me that due to the current (then )
demographic data that I was not going to get New Zealand's
"superannuation at 60 like it was at the time. Fast forward 10 years, 60 raised to 65"

Same here.  I have never forgotten the superannuation salesman walking into my studio in 1990 who, after I told him (on a complete gut feeling) there would be no money left for any such pension funds before I'd even turn 65, simply walked out the door, never even trying to argue the point.  He knew alright......

Mike 

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