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Is your US pension safe? maybe, maybe not


Pantah
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It is becoming more and more of a practice to shift over pensions to private insurance companies. Here's the kicker. Your pension normally is covered by the Pension Benefit Guaranty Corp. (PBGC) to ensure continued payment. Not so when shifted over to private insurance companies. Yikes!

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Pantah. I understand and agree with what you write. On the other hand, The PBGC is a government agency, and reports indicate that it is so underfunded and under-capitalized that it is incapable of protecting the pensions of any group other than the smallest. In an economic crisis, which many predict is coming, the PBGC won't be there to protect pensioners' benefits.

Just an observation. Not a prediction. Not sure what we can do about it. Any ideas?

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 Mine is OK for the time being. I learned this today on a financial advisor podcast. Ric Edelman basically said save for retirement and don't consider your pension to be secure. If your pension is small enough you can cash out sometimes on request.  I had no option other to choose when to start it. Sooner may be better than later. My opinion is that the PBGC may cover the smaller pensions to some degree. Not an easy call.

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