When will public sector pensions crash?
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yehudi
Apprentice
Joined: 23 Nov 2006
Posts: 25
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 Posted: 08/06/07 - 07:38 Post subject: |
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| Dear digital friends! As a civil servant with a public sector pension I am a bit worried about developments and talk of pension crashes. Is my pension safe? Or is it just a matter of time before public sector pensions will crash, and if so when will this occur? What do you think this will mean for my future? |
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burnaby
Apprentice
Joined: 26 May 2004
Posts: 14
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| Posted: 08/31/07 - 02:22 Post subject: |
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| I am afraid you are right to be worried. Apparently there is a growing shortfall in many public sector pensions. This means that the gap is growing between the money being put into the schemes, and the money that should be paid out to members of pension funds. The employee contributions you pay will almost certainly increase a lot, as well as the cost to your employer, and perhaps to the tax payer. Even so I would say, unfortunately, that these funds are certainly heading for a crash |
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yehudi
Apprentice
Joined: 23 Nov 2006
Posts: 25
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| Posted: 09/24/07 - 21:06 Post subject: |
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| Come on, dont be so pessimistic! Not everyone who will receive a public sector pension will retire on the same day, live to be a hundred and take out the maximum amount! These funds are calculated in a way that takes all this into account. Some die quicker, others later than the average, and the thing will balance itself out. Thats how it works. Yes, worker contributions might increase, but then. A peaceful retirement is certainly worth paying for, isnt it? |
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