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These fat California pensions are about to go away. It's just a matter of how long you can pretend to have funding years after you have used up everything you have saved in the vaults. Or maybe how many government and social services you will be giving up in order to fund the pensions.
Too many people in high positions in government have ignored some basic universal laws of balance. I would hate to see the conditions of their personal checkbook accounts if they can't figure out how to balance the future needs of their state constituents with the need for ongoing fiscal responsibility. Too many folks out there either have their heads buried in the sand or they have taken up participation in the "underground booming economies" to the point where they are no longer needing to be worrying about their pensions any more.
Good links. I had already read the first one when it came out. Both links talk about the potential funding problems of California pensions, but neither one supports your contention that they are "about to go away". Your use of the word "about" implies that it will happen before very long. New hires are already subject to less generous formulas, but that won't take effect until the new hires start to retire decades from now.
As for "using up everything you have saved in the vaults", CalPERS has billions and billions of dollars "in the vaults". If those reserves are ever used up, and it's possible eventually, there will be an enormous crisis, but that is not around the corner, as you imply.
There is a real problem with public pensions, but exaggerations such as the one you engaged in don't lend to a rational discussion.
Again, Silicon Valley. The cost of living is so high for just routine expenses compared to the rest of the country that the $65k just goes right through - aside from higher SS amounts and more savings from fixed percentage savings, it's essentially financial diarrhea.
When exactly have you lived in Northern California? For someone who has lived in the Bay Area for a long time, certain costs may not be as high. It is very much dependent upon the person and their particular costs and situation. When I moved to Nashville four and a half years ago I had to pay 30% more in rent in Nashville than I did in San Francisco. Some things were cheaper and other things were more expensive. If I made that say move today I would be paying 50% more in rent in Tennessee than I was paying in San Francisco. The whole conversation is moot if we're talking about somebody moving there now but we aren't.
Show me where I can buy a reasonably priced McMansion that can be paid for with a $17 an hour job?
"reasonably priced McMansion" is an oxymoron! No one DESERVES a behemoth mansion...and very few people even need one. Square feet per family member has maxed out and is now dropping - no need for a family of 4 to have 3,000 sq.ft. on 1/2 acre - get reasonable with the space needed and also realize that granite and stainless steel are wants, not needs.
When I moved to Nashville four and a half years ago I had to pay 30% more in rent in Nashville than I did in San Francisco... If I made that say move today I would be paying 50% more in rent in Tennessee than I was paying in San Francisco...
Wow! I had no idea Nashville was so expensive. If you don't mind, can you put some dollar numbers to the rents in the two locations?
"reasonably priced McMansion" is an oxymoron! No one DESERVES a behemoth mansion...and very few people even need one. Square feet per family member has maxed out and is now dropping - no need for a family of 4 to have 3,000 sq.ft. on 1/2 acre - get reasonable with the space needed and also realize that granite and stainless steel are wants, not needs.
You're right no one needs a 3000 sq ft house, 1/2 acre lot, granite or stainless steel, but if one can afford it why does anyone care where they spend their money?
I understand this thread is about poor retirees but your assertion of what is a reasonable house for a family of four is an overreach. What is wrong with getting wants and not just settling for needs? Again, assuming one can afford it.
You're right no one needs a 3000 sq ft house, 1/2 acre lot, granite or stainless steel, but if one can afford it why does anyone care where they spend their money?
I understand this thread is about poor retirees but your assertion of what is a reasonable house for a family of four is an overreach. What is wrong with getting wants and not just settling for needs? Again, assuming one can afford it.
Good links. I had already read the first one when it came out. Both links talk about the potential funding problems of California pensions, but neither one supports your contention that they are "about to go away". Your use of the word "about" implies that it will happen before very long. New hires are already subject to less generous formulas, but that won't take effect until the new hires start to retire decades from now.
As for "using up everything you have saved in the vaults", CalPERS has billions and billions of dollars "in the vaults". If those reserves are ever used up, and it's possible eventually, there will be an enormous crisis, but that is not around the corner, as you imply.
There is a real problem with public pensions, but exaggerations such as the one you engaged in don't lend to a rational discussion.
Scroll down to the bottom of the link. Only 25% of Caliper pension benefit payouts come from employer contributions. 62% comes from return on investments and the remaining 13 percent comes from employee contributions. Try removing that 62% invested from the economy and watch the collateral economic damage. Apply that thought to the many pension fund investments across the county and you realize how dependent America is on pension investment funds to fund the economy and oh yeah I say LOL all those with 401K investments who profit from that invested money.
The world's 300 biggest pension funds saw their combined assets rise 6.2 percent to $14.9 trillion in 2013, research from Pensions & Investments and Towers Watson showed.
The pace of growth in assets under management had slowed slightly, however, at 6.2 percent from 9.8 percent in 2012.
North American funds remained the largest region for AuM, at 41.4 percent of the total, with the 126 U.S. funds in the list accounting for 36 percent. Japan has the second largest share, at 13 percent, with the Netherlands third with 7 percent and Norway and Canada next, both with more than 6 percent.
Your point about reform already occurring is right on target as what folks are complaining about is already not available to new hires.
These fat California pensions are about to go away. It's just a matter of how long you can pretend to have funding years after you have used up everything you have saved in the vaults. Or maybe how many government and social services you will be giving up in order to fund the pensions.
Too many people in high positions in government have ignored some basic universal laws of balance. I would hate to see the conditions of their personal checkbook accounts if they can't figure out how to balance the future needs of their state constituents with the need for ongoing fiscal responsibility. Too many folks out there either have their heads buried in the sand or they have taken up participation in the "underground booming economies" to the point where they are no longer needing to be worrying about their pensions any more.
Following are basic facts and data about Calipers pension fund so you can do your own analysis and projections without needing to worry about the objectivity of the analysis:
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