Pensions have half the funds they need
Micro economics works much better then macro economics in figuring out how much pension money is there, imho.
I have previously posted that I know most people don't realise it yet, but their pensions can only afford to pay them about half of what they are expecting they will get.
Well, Naked Capitalism has a post that is right in line with my numbers. Macro economics creates fairytales. Looking at it from an individual input and output simply says the numbers in the macro example are impossible, and that truth is coming out.
Soon everyone will know their pensions are not what they think they are.
It will be interesting where people who think they paid for a pension (they did not or the money would be there) and people who are expected to pick up the tab for pensions that do not get pension battle it out. I have no intentions of pay for someone else's pension and providing for my own retirement, and I think that is the sentiment of most that do not have these cushy, unrealistic retirement plans. I do have a pension plan right now, but very, very late getting it so not much there. Back in 2006 when I realised pensions were going to collapse I just threw away the idea of relying on pension at all.
That reminds me, I am eligible to take what I paid into pension from BC out and redirect it so I control it. I need to do that this summer... I suppose that is my next investment priority, gaining control of my money from a pension plan.