Quote:
Originally Posted by benhogan
according to the article, people put in 5.5% of their salaries, the town put in a matching 10.5%. That's already a lot.
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No, it really is not. Play around with a portfolio calculator to see for how many years you have to save 16% of your income to reliably generate, say, 75% of your pre-retirement income. I think you'll be surprised.
Assuming there's no mismanagement of pension funds or fraud here - and the article mentions no such things - this is a simple case of either not saving enough or withdrawing too much. In either case, you run out of money. It can happen on an individual scale, and it can happen on a municipal scale.