I'm curious if anyone has heard about the pension crisis that is unfolding because of rising rates? The company that I work for doesn't offer pensions anymore (as most companies). However, they used to. I have many coworkers that have been there for a long time that have pensions. Several are in their mid 50's but planned to work for a few more years. They all learned within the last month that the value of their pension lump sum amount has declined by about 25% this past year because of the rising rates. And apparently it resets every year. So the boat that they have found themselves in, is they can retire by December of this year and lock in their lump sums before everything resets. If they wait, their lump sums drop significantly and could get a lot worse of rates keep going up. They have all met with financial advisors and found out that this is happening. And its happening to everyone that is in a private pension program and has a lump sum option. I found a few articles on line about this from CNBC and Forbes, so its definitely happening. This is a really under reported story in my opinion. Especially since we already have a labor shortage. I don't know how many people nation wide are in this camp, but it seems like we are about to have a ton of people drop out of the work force in a couple months. Has anyone heard about this and will this have enough impact to effect the markets, supply chains, etc? I admit, that I don't fully understand the mechanics of all this but I know its happening.
Here's a couple articles I found on it.
Submitted September 01, 2022 at 10:55PM by GPAWisSketchy https://ift.tt/hLd4xTf
