Wednesday, December 9, 2009

Broken pensions

Here is an interesting article about the New Jersey State employee's pension system. It is totally busted, state and local governments haven't been contributing, and the average payout is $60,000 a year. 1 in 3 pensioners move out of the state when they retire (because taxes are onerous...because of the pensions...?).

Brutal. Imagine you're now 40-something, having banked on a comfortable pension when you retire, ie not banking your salary to a retirement account, and voila, the carpet is going to be ripped out from under you.

Save your dough.

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