Why millennials should care about government pensions — even if they don’t have one

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Why millennials should care about government pensions — even if they don’t have one
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If you pay taxes, then you need to pay attention -- no matter how old you are.

Public pensions are not exactly a burning issue for millennials. In their minds, they won’t be retiring for decades, and pensions won’t affect their lives anytime soon. That line of thinking couldn’t be further from the truth. There’s currently a public pension crisis that doesn’t just affect retired government employees, but also young people in the workforce — both in terms of their future retirement plans and current salaries. Millennials, tune in.

Governments with underfunded pensions need to come up with the money somehow, and the most obvious way is to raise taxes. What this means for millennials, who are already the largest generational group in the workforce, is that more of their tax dollars could be diverted to paying down public pension debt instead of paying for public services.

In short, the next generation of public sector employees won’t be provided with the same retirement options as baby boomers or members of Generation X. For example, Detroit’s workers have already seen their retirement benefits cut as a result of economic decline and poor fiscal health.

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