Recession may delay some public sector employees' retirements - American City & County article.
I've often thought that one of the great advantages of working in the public sector was the defined benefit plans that guaranteed a fixed amount at retirement regardless of the performance of markets. That's still true, but increasingly, the cost of the plans is straining government budgets. And public sector employees are finding that even these secure plans may not be enough for retirement.
While the world seems to have been turned upside down over the proposed changes in America's health system, the retirement system is undergoing its own turmoil. If government pension plans are under stress, and Social Security is endangered, the importance of personal savings grows. But market swings make that leg of the retirement stool seem especially unsteady.
One of the only factors in the equation that employees can depend on is that retirement is possible only if they work longer. So even the most secure of retirements seem less certain. No wonder people are angry.
I've often thought that one of the great advantages of working in the public sector was the defined benefit plans that guaranteed a fixed amount at retirement regardless of the performance of markets. That's still true, but increasingly, the cost of the plans is straining government budgets. And public sector employees are finding that even these secure plans may not be enough for retirement.
While the world seems to have been turned upside down over the proposed changes in America's health system, the retirement system is undergoing its own turmoil. If government pension plans are under stress, and Social Security is endangered, the importance of personal savings grows. But market swings make that leg of the retirement stool seem especially unsteady.
One of the only factors in the equation that employees can depend on is that retirement is possible only if they work longer. So even the most secure of retirements seem less certain. No wonder people are angry.
