Finding Out The Safety Net For Retirement Now Has Holes

July 30, 2013 - PRLog -- By now, you have all heard about the many historical cases of bankruptcy involving cities all across America. In the last three years many cities have filed for this protection to help alleviate their debt problems, but two in particular are Stockton and Detroit. These two major U.S cities in particular have been in the headlines for many reasons.

These two cities are very similar on how they operate. They both had development projects for down town and other areas that they borrowed money for. Along with growing pensions that have been underfunded.  With the economic downturn of 2008 hitting these cities hard with high crime rates and some of the highest foreclosures in the nation these cities lost a lot of business and people.

The fact remains as these two cities dealing with all these debts have had to choose on how too eliminate these liabilities and pensions are usually the first thing to be reduced. So there is a fight going on between cities and pensioners: on one side a city making the only decision left it can make and retirees fighting to save what has been promised to them.

The first question this brings up, is your retirement truly safe? The second question if pensions aren’t safe then is there anything for retirement that is?

These two questions, if you have a pension at one point have crossed your mind. The fact is there are retirement vehicles out there that can provided you the same guarantees of safety of principle and income such as a pension so that you can know what your retirement will look like.

The problem today is that politicians have promised what economist and financial advisors know is not possible ultimately putting retirees in a place of worry. Retirees asking themselves the question will I have to go back to work if I lose a quarter of my retirement.

These two cities might be the start of what could be an uphill road not only for retirees, but for this country. These pensions are becoming the only way to relieve financial burden on cities putting the guarantee of retirement possibly on hold.

Joshua is an Associate Agent at Aaron Matthews Financial Resources frequently seen in FOX, NBC, CBS, ABC, The Chicago Chronicle, and CBS Money Watch. In his years as a financial professional, Joshua has seen the lifelong impact of retirement preparation – or lack of preparation—every day. Commenting on his career, Joshua says, “I feel blessed to have helped so many people prepare for the day when they don’t have to work any longer. As well as helping those in retirement keep it that way.”