Last week, Spectrem Group released a study titled “Tensions with Pensions,” that surveyed 3,265 pensioners on a host of issues related to pension funding, holdings, and performance satisfaction. The findings of the survey should serve as a warning for elected officials hoping to politicize pensions, especially as many are up for reelection at the end of the year.
While many are aware, pension underfunding is a growing problem across the country. However, the retirees in the survey overwhelming believed their pension fund to be fully funded. This creates great concern for retirees across the country as the study indicates pensioners rely on at least half of their retirement income on the pension returns. The participants were overall satisfied with their pension payments and most are unaware – and many unconcerned – of the different investments that make up the pension portfolio so long as it provides a positive return.
The pension members assigned weight to different factors on level of importance the management of the funds. Seventy-five percent of members indicated that the most imperative concern is maximizing returns and fully funding the pensions. This is compares to just fourteen percent of those surveyed want the fund managers focused on social and political issues.
Pensioners depend on stable and profitable pension payments for more than half of their future earnings. For this, it comes as no surprise pensioners are more focused on investing in their future than divesting in fossil fuels.