Quote:
Originally Posted by CliffFletcher
Well, we could afford to pay it if teachers still retired at 65 and died at 75. But when people retire at 55 and live to 85...
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Even then, as I recall the numbers are something like needing 30%-40% of your working salary for income when you're retired.
Even if those actuarial work/death ages worked out at the percentage of salary level I still not sure its a self-sustaining model.
And to make everything worse on top of all of that they retire and then keep working, generating their top-end salary but they're obviously no longer paying into the pension fund because they're collecting and they're keeping someone else out who would be paid a lower salary but would be contributing.
And why wouldnt you? You get to keep making your top salary with fewer deductions, the fact that it screws up an already broken system doesnt seem to factor in.
The whole thing is an unmitigated disaster.