National Pension Crisis: Be Prepared for Retirement

Unfunded pensions are becoming a big problem in the U.S. today. The local NPR station here in Chicago just did a piece on this and I found it so troubling that I wanted to address this topic on the show this week. The state of Illinois, for example, is one of the worst in the nation when it comes to setting aside enough money for its pension plans. In an analysis of the states' pension funds in 2008, Illinois had set aside just 54 percent of the money that's been promised to its state workers and retirees. So basically, every man, woman and child in the state of Illinois is on the hook for $6,031 in pension promises that the state doesn’t have the assets for. And this is happening in other areas of the U.S. too. It’s a growing, national problem that needs to be addressed.