Pensions across America, quickly entering crisis mode, lost money in the 2007-2009 stock market crash. Poor decision making and horrible timing sold 'risky' stocks at the bottom for the 'safety' of US government bonds. In other words, most pension funds needing 8% or higher returns to survive (payout to retirees) shifted to an asset yielding less than 3% and primed for a secular change of trend from falling to rising interest rates. This foolish decision will bankruptcy an increasing number of private and public pension funds from 2017 to 2020.
Headline: Drained pension fund has retired New York union workers pinching pennies to survive, as doom looms for reserves across U.S.
In the backseat of his beat-up car, Tim Chmil stashes what he refers to as his new retirement fund — bags and bags of recyclable bottles and cans.
Every time he spots a bottle on the street, he bends down to pick it up.
“Even if it’s just 5 cents, it’s money, and I need it,” the 71-year-old said.
It’s not the way the ex-trucker — a member of Teamsters Local 707 — expected to fund his senior years.
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