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State and Local Pensions Average 0.6% Return In 2016 (Despite 7.6% Return Assumption and Chronic Underfunding)

This is a syndicated repost published with the permission of Snake Hole Lounge. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

The US Federal government is spending at a fast and furious rate. US Federal Spending is rising at a staggering $428,253,120 per day while US Federal TAX Revenue is only rising at $129,857,760 per day. That is almost a ratio of 2x tax revenue.

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Meanwhile, US public debt is skyrocketing.

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While the Federal government further indebts citizens, the US personal savings rate in declining at a rate of 24% YoY.

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Then we have the underfunded pension funds of American, both private and public.  Public pension funds earned a dismal 0.6% in 2016

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According to the Center for Retirement Research at Boston College. public pension funds are also underfunded at 67.9% as of 2016.

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Rotten returns coupled with chronic underfunding. Add to this problem runaway Federal spending and public debt and Houston, we have a problem.

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