No. of Recommendations: 0
<<<<<<Can You Count on Your Pension?>>>>>>>>>

No.

Well, that is you can't count on pretty much anything but a Government (Military or Civil Service) pension. At they are backed, essentially, by the full faith and credit of Uncle Sam. Uncle Sam will not dissolve your pension during a "reorganization."

Anything else, can, may, and might be gone either (a) before you need it or (b) while you need it.

Just take a look at a couple of things:
- The *big* shift to Cash-Balance plans (IBM, Delta Airlines, etc)
- The evaporation of promised retirement benefits (Bethlehem Steel, US Airways, etc).

A pension that is only as good as the strength of the company behind it should be expected to provide nothing. Zip. Zilch. Nada. If it does, great, but otherwise to count on it being there when you most need it is to court disaster.

The fact that companies like GE, GM, and many others can manipulate their earnings based upon their retirement plans is indicative of the permanence (or lack thereof) of such plans.

My $0.02,

Corky
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement