If you don’t think that taxes will be higher in the future, or that your “planned” retirement benefits might be cut, a recent study from the Pew Center found 34 U.S. states failed to maintain safe levels of money in the pension funds, which most experts agree is about 80 percent of long-term obligations. Specifically, four states — Connecticut, Illinois, Kentucky and Rhode Island — didn’t even have 55 percent of the money they’ll need in the long run.  What does that mean for municipal or state employees? Well first, their pension might not provide them with a safe and comfortable retirement  as they once thought. And second, all the other residents of the state may need to help fund the gap between promised benefits and actual pension revenues.  Another scenario could mean  younger state workers would either have to pay more for the same benefits, or retire at later ages. Get the full study entitled “The Widening Gap Update.”

 

 

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