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I don't think pension funds will full fill their obligations except that the Feds will pick up the slack minus some haircut. This happens all the time when a c
by sjg007 7y ago
I don't think pension funds will full fill their obligations except that the Feds will pick up the slack minus some haircut. This happens all the time when a corporation wants to offload their pensions. It will happen with cities and state governments.. Ultimately the Fed will pay out.
- jacquesm 7y agoDepends on what country you are in. I suspect a lot of old people will end up falling back on their children, like in the old days. Imagine if all of those baby boomers will live to 99. It will be quite an interesting societal change.
- dharma1 7y agoI think defined benefit schemes will be all changed to defined contributions schemes, for this reason - people live too long. Minimum retirement age will also keep getting adjusted. Most private sector pensions in the UK are already DC schemes. The invested savings future retirees accrue in DB plans run out before the beneficiaries are 99, and those schemes will collapse unless bailed out. Healthcare costs will also be a huge problem with extended life spans, unless technology miraculously guarantees healthy life until death.