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Showing posts with the label retirement

Putting the Power Back in Pensions

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Pensions are a primary source of retirement savings throughout the nation. Poor management decisions, recessions, and cronyism have depleted these funds to a point where they now become a significant risk, not only to those who rely on them, but to the local economy as well. Chicago recently became aware of the devastation of their policies when faced with a pension budget shortfall of $6 billion that neither they or the State of Illinois can afford. Difficult choices will need to be made that will likely upend entire networks of people and companies that need and profited off these pensions. The problem with pensions is that when they go South there are few win-win situations, and reform comes with a significant cost; especially to those of older age. The cost either falls on the states, on employees, or on the national economy. As the risk of multiple pension implosion rises at a time when national debt is high, the Great Recession is coming to a close, and international strife i

Gallop Poll Shows Positive Worker Outlook

A poll by Gallop brings discusses improvement in worker perception of employment. 58% of full and part-time workers say they are completely satisfied with their jobs as compared to 50% in 2009-2013. The growth in the economy, lower unemployment rates, and improving employment opportunities are having an impact on worker perception.  The numbers also spotlight a few areas of concern. The amount of work, physical conditions, relationship with bosses, job security, recognition and workload are above 50%. Areas below 50% are opportunities for promotion, retirement, health insurance, earning power, and job stress.  Benefits such as health insurance and retirement have taken a significant hit in the current market. Employers often cut back on these expensive benefits due to the inherent increasing costs with little direct return to the employer. Employees will be asked to pick up a higher percentage of these costs.  A problem results when earning power is not sufficiently ri