Relying on public pensions: Don’t

FOR FACULTY MEMBERS WHO CONTRIBUTE TO PUBLIC PENSIONS: 85% of pensions could fail in 30 years. “Bridgewater set up a sophisticated model to simulate many of the possible market environments to see how they would affect public pension’s [sic] resources. In 20% of those scenarios, public pensions run out of money in 20 years. And in 80% of the scenarios, public pensions run out of money within 50 years, Bridgewater says.”  Of course, pensions can fix this problem by increasing contributions or cutting benefits over the long term, and these are only projections.  Nonetheless, if you do contribute to a public pension (like me), have a backup plan.

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