Pensions

I was reading the story about the United Airlines pension deal, where the courts have held that United can now ignore the signed contracts that they have with their employees and default on all of their pension obligations. I can tell you that this will become more common in the years to come. Pensions are soon to become fond memories for most workers. I'm certain that the company I worked for, a highly successful, all-union construction company will be ridding itself of a pension plan for its new corporate employees. The reason? It doesn’t need a pension plan to attract good employees. More and more of its competitors are doing business without the cost of a pension plan included in their bids…so, to be competitive, the pension has to go. Ask around and you will find that most employers have stopped including pensions in their benefit packages.

Do you see where this is heading? No pensions and reduced Social Security benefits. Sounds like and looks like a disaster in about 20 years from now. Since most American’s don’t want to save…or invest, it’s doubtful that they will have the means to live comfortably in their retirement. Which will hurt us all. (Economics 101)

There was a great story in the Sacramento Bee that illustrated how some American’s feel about savings…A Rancho Cordova schoolteacher has run up an approximate $17,000 debt for plastic surgery, using a credit card. She admits that she isn’t very good at the “whole savings thing.” And she added, “When I want something, I want it.”