Monday, April 11, 2016

The U.S. Government Has 
A $20.4 Trillion Retirement Problem
Business Insider highlights how the U.S. government does not have enough money to pay retirees .. "The credit-rating agency Moody's says state, local, and federal governments are about $7 trillion short in funding coming pension payments .. 'The unfunded liabilities of the various federal employee pensions systems, covering civilian and military employee benefits, amount to about $3.5 trillion, or 20% of US GDP.' ..  Additionally, Moody's estimates that unfunded state and local government pension plan liabilities are of the same magnitude, bringing the total shortfall to 40% of GDP .. The bigger challenge to the US comes from the unfunded liabilities for the Social Security and Medicare programs .. The Social Security funding gap is estimated at $13.4 trillion, or 75% of GDP, while the shortfall from the Hospital Insurance component of the Medicare program amounts $3.2 trillion, or 18% of GDP." .. That means between the pension shortfall and the benefits shortfall, the U.S. government is $20.4 trillion short in funding for retirees.
LINK HERE to the article

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