Public pensions have just $3 trillion in assets to invest to cover future retirement payments of $10 trillion over the next many decades, Bridgewater says. An investment return of roughly 9% a year is needed to meet those onerous obligations.This doesn’t mean, of course, that 85 percent of pension plans will actually go bankrupt. These numbers depend on public officials not taking the necessary actions. States and cities are slowly realizing that they have a major problem on their hands. Many will take preventative measures, either by cutting benefits or by increasing contributions to the plans (more likely a combination of the two).
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