You Can’t Trust Anyone Else With Your Retirement

There used to be a bond — of sorts — between a corporation and its employees. You worked hard, did your best, and in return, the company was there for you — at least nominally — when you needed them, like when you retired and they promised to pay your pension for life. Those days are long gone — unfortunately — and the only thing you can be sure of anymore is you can’t trust anyone else with your retirement.

You can’t trust anyone else with your retirement

And here’s a great example to prove the point:

Verizon retirees have sued the phone company because it’s planning to transfer the responsibility of paying their pensions to an insurance company, where they will have weaker legal protection.

Verizon Communications Inc. said last month that it would transfer $7.5 billion of its pension obligations, covering 41,000 management retirees, to Prudential Insurance. The deal effectively turns the company’s defined-benefit pensions into annuities.

And Verizon’s reason for doing this?

When it was announced, Verizon said the deal lowers the risk that its pension obligations will end up costing more than projected.

In other words, Verizon did a miserable job of risk analysis and projections when they evaluated their pension obligations and are now trying to shift responsibility for their miserable business management onto the backs of their employees.

The employer/employee contract was shattered a long time ago — and it wasn’t the employees who broke it. If you want to have any hope of being comfortable and secure in your golden years, you can’t trust anyone else with your retirement.

Click here to learn more about why you can’t trust anyone else with your retirement.

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