The pension system in America is in trouble.
According to an article published by the State Journal Register, in Warren Buffet’s letter to shareholders, he said ”
Citizens and public officials typically under-appreciated the gigantic financial tapeworm that was born when promises were made.”
Those comments coming from an expert on finance should send a clear warning to Americans depending on pensions and benefits from government entities.
Just recently, veterans benefits were adjusted. In cities across the country the pension programs are now moving to more inferior types of retirement plans like 401k, instead of the more highly regulated and more accountible traditional defined benefit plans.
What is happening right now is the tip of the iceberg. When you consider what we have been talking about regarding the debt ceiling, income taxes, the fed and stock market bubble, it would only take another unforeseen world event to cause a major financial calamity again.
For more information on what Buffet had to say you can read more: http://www.sj-r.com/article/20140303/News/140309875#ixzz2vEV32Dn3