I Like Guarantees Part 2

I can not watch scary movies.  They just haunt me for days after, so I am done watching them.  There is a scary real life movie unfolding today, but we can’t turn the channel on this one.  The title – “Pension Armageddon.” At least once a month I read an article on the state of today’s pension funds.  The level of unfunded obligations is horrifying.  For example, the state of Illinois is short $137 billion on their pension promises.  If you have a pension I recommend that you look at the current funding levels.  If it is less than 60% you need to begin watching it closely.  The issue is not that they will never pay you, the issue is, could there be a pay cut in your future.  Your retirement plan needs to consider how to add income from other sources if your pension does have an issue in the future.  Pensions are a source of guaranteed lifetime income.  They are an important part of a retirement plan.  I will write on pension choices for payouts and what to consider if you have a spouse in future posts.

Written By: Rich Nulph

Rich Nulph is the President and Founder of Safety First Retirement. He started Safety First Retirement to give his clients an opportunity to insure their retirement dreams while also prioritizing safety.

August 19, 2021

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