Retirement benefits cut 60% by the state

So you put in your 30 years with the government.  Yeah, it was a rough time, but now that you have a guaranteed retirement it sure looks like it was worth it.  Big question though, is that retirement income really guaranteed?  Probably not.

Just today California’s retirement fund, Calpers, issued a statement saying it was going to cut retirement benefits by over 60% for 191 people.  The back story is the government agency that these people worked for didn’t make a payment to Calpers and so Calpers cut the benefits.  Here’s the press release about the slash in retirement pay.

What does this mean to you?  Don’t rely upon your employer providing the retirement income they guaranteed you.  You never know what is going to happen to your employer.  If you want to be able to retire with financial dignity it really is up to you to make sure you have, and control, your retirement savings.