More than 80 million Americans are covered by the National Servicemembers Compensation Fund, which pays them monthly pensions to help with living expenses.
But how to pay them?
A new report by the US Pension Research Institute estimates that the US needs to invest $20 billion to retire $40 trillion in its retirement funds over the next 30 years.
The US is already over-indebted, with $3.5 trillion of debt.
But the problem is compounded by the fact that the fund has not been able to keep up with inflation since 2009, the institute said.
If it could, the US would need to borrow from other nations to pay retirees.
That could mean paying retirees a paltry 0.4% on their savings, or more than $8,000 per person, according to the report.
But, the report notes, the fund is already a relative ponzi scheme.
The pension fund was created in 1983 to help pay for the pensions of servicemember workers who lost their jobs in the Great Recession.
But since then, it has become a massive financial bubble.
It’s been losing more money than the value of its assets.
In the past decade, the value has doubled, the index for the S&P 500 index dropped by more than 400 points, and the S &M index fell by more.
The index’s biggest single contributor, the S-shaped S&am index, fell by nearly 500 points.
That means that more than a third of Americans are over-burdened by their retirement fund, and only about 40% of them are making any real investments, according the report, which was released Tuesday.
“The retirement fund is basically a Ponzi Scheme.
It has been for the past 30 years,” said Sarah J. Koller, the research director at the Pensions Research Institute.
“It’s a financial disaster.
The funds are not being used for their intended purpose.”
The report says the government should take action.
It says the US should: Invest more in the pension funds; Reduce or eliminate the current retirement age from 65 to 67; Establish a universal pension for all citizens; Create a national retirement plan to match the US’s retirement age with other developed nations; Use the pension fund as a vehicle for investment of new debt; Require that the public contribute to the fund in the form of bonds; Increase the retirement age of the S.&.> S&ams index; and Raise the retirement ages for the US military and veterans.
The study found that the retirement funds are also a “major contributor to the financial crisis of the late 1980s, the financial crash of 2008 and the financial meltdown of the first quarter of 2017.”
And in a new report released Tuesday, the Pension Research Institute says the retirement plan is a “bipartisan failure.”
It found that many of the policies put in place by President Donald Trump, including tax cuts and tax cuts for the wealthy, are not helping.
The report points out that the SARP is only funded by $8.5 billion a year from payroll taxes.
And it says the SSA’s retirement fund has $1.9 trillion in assets.
And that the funds are currently at “high risk” of default, with just under half of the funds’ assets held by the federal government.
The S&s index is down about 1,000 points in the past month, and its losses are up about 2,000 in the last year.
The current index, the most closely watched in the SPS, is down more than 2,200 points in just two weeks.
But that index is actually up slightly.
And the PIRI found that pension funds that are funded by Social Security have been able and will continue to increase their investments, despite the fact the Social Security system is “over-subscribed.”
“We have had this situation where there’s been this financial crisis,” Koller said.
“There’s been an investment boom in the United States, and yet we’ve had a pension fund that has essentially been a Pazonzi.”
The Pensions Report recommends a combination of policies to help fund the retirement plans, including: Increasing the minimum retirement age to 67 by 2026.
Requiring workers to put more of their savings into the Social Securities Fund.
Making the Social Services Fund more attractive for private investment.
Estabiling the Social Sates Pension Fund as a public trust.
Increasing interest rates on the Social Investment Funds, to prevent a sharp rise in the cost of investing.
Allowing the government to take over the Social Fund and create a national pension.