"Pension Funds: What Could Possibly Go Wrong?
State and Local Pensions Average 0.6% Return In 2016
(Despite 7.6% Return Assumption and Chronic Underfunding)"
by Snake Hole Lounge
"The US Federal government is spending at a fast and furious rate. US Federal Spending is rising at a staggering $428,253,120 per day while US Federal TAX Revenue is only rising at $129,857,760 per day. That is almost a ratio of 2x tax revenue: (Click images for larger size.)
Meanwhile, US public debt is skyrocketing:
While the Federal government further indebts citizens, the US personal savings rate in declining at a rate of 24% YoY:
Then we have the underfunded pension funds of American, both private and public. Public pension funds earned a dismal 0.6% in 2016:
According to the Center for Retirement Research at Boston College. public pension funds are also underfunded at 67.9% as of 2016:
Rotten returns coupled with chronic underfunding. Who are those guys?"
What could possibly go wrong?