The Economic Perspective: “The Status of State Pensions”

This is Mary Walden with economist MW, welcoming you to the economic perspective.  Today’s program looks at the status of state pensions.  Mike, over 900,000 people in North Carolina receive a retirement pension from the state.   Yet there has long been a concern about the ability of state pensions to meet their future obligations.  What’s the current status of state pensions?

 

Mike:  Summary Answer

  1. A new analysis from the Boston College Center for Retirement Research still shows issues
  2. State pension plans were hard hit by the drop in stock returns during the Great Recession
  3. And if the pension systems want to be cautious, returns on safe financial assets are still low
  4. Add to this the fact that the number of retirees is growing faster than the number of workers, and have a similar situation to Social Security
  5. Good news for NC is that our pension plan has a much, much smaller issue than many other states
  6. Will be a continuing challenge
  7. I’m MW

 

Mary:  And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.