Shaky Pension Times Ahead

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According to the Washington Post, while the Federal Reserve has done a lot to help keep our economy afloat, they have set the stage for problems ahead for pension funds and potential pension recipients, particularly those with bond-heavy portfolios.

Questions

  1. How are near-zero interest rates are worsening the financial problems  of Social Security?
  2. How are near-zero interest rates affecting private pensions?
  3. How bad is the underfunding afflicting state and local government pension funds?
  4. What are some of the problems with assumptions used to calculate pension earnings?

Source:

Sloan, A. (2020). Lucky enough to have a pension? The Fed’s low interest rates mean it may no longer guarantee a secure retirement. The Washington Post, Oct. 21 (Retrievable online at https://www.washingtonpost.com/business/2020/10/21/fed-low-interest-rates-pensions/)