Dont Count on Your Defined Benefit Pension
- Thread starter yolosohobby
- Start date
You are missing a big point though. It's not just production of goods that makes economy anymore. In this day and age, technology and intellectual properties are big if not the biggest part of economy. The reason Chinese are producing everything we use is because their labour force is willing to take low pay, and the reason for that is the country is lacking the technology and know-how to create their own design of products and machine tools to manufacture the goods.Perhaps this will eventually lead us back to real money and a production based economy rather than an economy based on debt and consumer spending.
BS
USA and Japan guards their key technologies with secrecy, but the Chinese, and especially Koreans are catching up. While USA is demanding Chinese to float their currency, but the only way to truly reach equilibrium is if USA shares its technology with China, and then there will be no reason for Chinese government to keep RMB low cuz they will be able to outsource manual labour to even poorer countries, now that they possess competitive technologies, and have the foundations in which to develop their own. Maybe then, some production jobs will come back to the USA.
From what I understand, the plan is doing great. There is a technical deficit which means that if there were no longer any teachers employed the plan would not be able to cover all of the liabilities. Of course that won't happen so the plan is fine (not to mention that teachers have one of the highest contribution rates). I would also expect that it won't be long until teacher and other public sector retirement dates get moved back.The problem with the teachers plan is, if it can't make enough to support it self,...you and I will have to help them out,...makes me feel all warm and fuzzy inside.
FAST
Give it a few years. China's economic boom is not sustainable. India is already feeling the effects of a growing middle class (hell, Indian companies are outsourcing).... The reason Chinese are producing everything we use is because their labour force is willing to take low pay, a...
Exactly, the countries with more advanced technologies always delegate manual labors to the less advanced economies. This is efficient global trade, it's normal. However, the people that contribute to the technological advances in USA and Canada tend to be the lowest paid - Scientists, lab technicians, engineers, relatively low paid compared to people who make business deals - managers, CEO, politicians make exponentially more even though most of what they do is talking.Give it a few years. China's economic boom is not sustainable. India is already feeling the effects of a growing middle class (hell, Indian companies are outsourcing).
After living here, teaching entitled little brats, I can understand why they'd want to moveTeachers can retire as early as age 55 on their full gold plated pensions. Many of them live in communities in Florida.
Interesting show on pensions tonight on The Agenda, with one segment focused on the OTPP.
http://ww3.tvo.org/video/191674/jim-leech-state-pension-plans
http://ww3.tvo.org/video/191674/jim-leech-state-pension-plans
Ontario teachers are among if not the highest paid in the world. Definitely higher paid than American teachers.After living here, teaching entitled little brats, I can understand why they'd want to move
Most plans are in deficit (i.e. liability > assets) for these 2 main reasons.
Liability is inflated due to low interest rate and Asset has not recovered from the financial crisis.
As for the aging population, and retired/active employees, they are a factor but not much.
A 1% change in interest rate, affects liability by about 15%, so at these historic low discount rate, you can see why plans can easily get into deficit.
Liability is inflated due to low interest rate and Asset has not recovered from the financial crisis.
As for the aging population, and retired/active employees, they are a factor but not much.
A 1% change in interest rate, affects liability by about 15%, so at these historic low discount rate, you can see why plans can easily get into deficit.
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I've been hearing and reading for many years that Canadians think the CPP will be under funded by the time they retire. All doom and gloom and probably normal human reaction as our population grows and baby boomers approach retirement. I continue to read from several sources though that this isn't true. The CPP is sound for the next 75 years. Just one link:
http://retirehappy.ca/will-canada-pension-plan-cpp-be-there/
http://retirehappy.ca/will-canada-pension-plan-cpp-be-there/
Seems fair
The main COMPLAINERS are civil servants who want their retirement GUARANTEED,...while the remaining majority have to put up with theirs being determined by how well their investments do.
The entitled feel they are entitled to a guaranteed life style,...while everybody else should make it so for them !!!
FAST
The main COMPLAINERS are civil servants who want their retirement GUARANTEED,...while the remaining majority have to put up with theirs being determined by how well their investments do.
The entitled feel they are entitled to a guaranteed life style,...while everybody else should make it so for them !!!
FAST
Who knew it was that easy?If everybody keeps buying German korean and japanese cars there will be no pensions in the near future.
Economics ???
FAST
Everything is EASY when your not living in reality !!Who knew it was that easy?
FAST
