Recent inquiries by pension and endowment managers into divesting their portfolios from companies based on social issues has caused much concern among fund holders, educators, and future retirees. Divestment, a form of social activism, ultimately results in unintended financial consequences to the detriment of the overhaul performance of the pension or endowment.
In a recent meeting, coalition member and educator Yolanda Hudson, expressed her concerns about her pension and why she joined Protect Our Pensions.
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Just like all civil servants, Hudson has served the City of Detroit for many years with the security of a pension. Unfortunately the politics of today are interfering with her pension’s future safety.
“Because I want my pension preserved. I went into the contract expecting one thing and I want to make sure I get that in the end. I don’t want the political issues of the day determining whether I have security in my later means in life.”
Voices, like Hudson, are essential in highlighting the importance of smart pension investments and the consequences of divestment. And as the discussion on America’s pensions continue, it’s imperative that pension managers recognize the significance of a diversified portfolio and the future it brings to many hardworking Americans.