Pension crisis: 50% of States can’t cover their annual pension costs

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Rupert Hargreaves
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Pension crisis The average State’s Adjusted Net Pension Liability will grow to 9% of GDP by 2017 from 6.9% in 2015 reflecting a 40% increase in Adjusted Net Pension Liability according to a new report on the dire state of the US pension industry from Moody’s Investor Service. The pension industry’s troubles are well known. Record low-interest rates, poor investment decisions, and poor investment returns are all weighing on pension funds’ returns. On the other hand, demographic trends and longer life spans are increasing pension funds’ liabilities. When combined all of these factors mean that pension funds are on a…

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk