Massachusetts Pension Reform Means You Need to Invest in CDs Now
Don’t think you need a Massachusetts CD account? Think again. Governor Deval Patrick of Massachusetts has announced a sweeping pension reform for the state that is aimed at ending several loopholes in the state’s retirement system that many are exploiting. The plan of action was recommended by the Special Commission on Pension Reform, and includes the following initiatives:
- Capped pension earnings
- Elimination of the 10-day early retirement incentive
- Increasing retirement age
- Other proposals
Changes to the system also include tax reforms that are aimed at saving $2 billion over a 30 year period, making it more fair for taxpayers and businesses.
But while this all sounds great on paper, the truth is that Massachusetts, like many other states with people relying on pensions, has come to realize that pension funds are dying or running low. It’s simply a model that cannot continue as the amount of federal workers and general population continues to increase. The state cannot make enough in revenue without raising taxes or firing workers at some point.
Ultimately, this means that no one can guarantee your retirement savings but you. If the pension is eliminated or drastically cut before you ever get your payout, you’ll be out of money. Pensions, like social security, are in danger of running out especially because pension funds lost big on investments after the stock market crash of 2008. You need to start investing on your own, for yourself. If you don’t know much about the stock market, chances are you could lose your investment quickly. Instead, consider opening a CD account.
CDs are low-risk and can have good returns over a period of time. The more money you put away, the better. Searching for a CD account has never been easier thanks to our CD rates chart. You can plug in your zip code and we’ll provide you with the best rates in your area.
Let the pension reform be a warning to you that there are many things wrong with the retirement system. Not only will people be forced to work many more years before retirement, their retirement funds are no longer a guarantee! Take a bold step in securing your own future by saving with a certificate of deposit. You can keep laddering CDs to your success until the day you retire. Even a small amount yearly can compound into something great many years down the line.
You can read more about the pension reform here.
