3 ms·
Pensions are fantastically unsustainable How so? Annuities are the best-understood financial instrument of all. Of course financial projections fail if the par
by HarryHirsch 7y ago
Pensions are fantastically unsustainable
How so? Annuities are the best-understood financial instrument of all. Of course financial projections fail if the participant pool is too small (vide Philadelphia with the rotten industries at the core and office parks at the periphery), but that is a political decision and could be fixed.
- lotsofpulp 7y agoFinancial projections fail because no one knows the future of the economy and mortality rate decades into the future. Which is why they failed and almost every state and city government is in unstated debt via their underfunded defined benefit pensions. It’s also easy to steal from pensions under the guise of plausible deniability so the mechanism itself is broken, the people 30 years into the future have no way of keeping the people 30 years in the past in check.