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Coursework 3 : Individual Report
Finance & Accounting
Pages 7 (1757 words)
Raising Individual Financial Awareness (U50013) Institution Name Instructor Date Introduction The issue concerned about by Mr. and Mrs. Murray’s family can be solved in the following report, which clearly explains what the pension crisis means, this area can be best used by Alan.
The report is comprehensive and entails all the financial and accounting details that the Murrays can implement to solve their financial issues. Raising individual financial awareness Pension crisis Pension crisis is a foreseen problem or difficulty in settling federal, corporate, and state pensions in the European nations and US. This might come about due a difference in the available resources to settle the pension and the pension obligations that arise. Studies show that the major factors contributing to this situation include lower birth rates, and most retirees living longer (The Economist, 2008). Reasons for this situation sometimes may vary depending on the nation. A good example is the current pension crisis in Pennsylvania. The country is facing this crisis due to its two-pension systems Public School Employees and State Government Workers both have over 40 billion dollars in debt (Priya, 2013). This crisis started surfacing back in 2001. A ten billion dollar hole was created in the pension systems when “Facing a flush stock market and a fully funded system, legislators raised benefits for state and school workers by 25 percent, hiked their own benefits by 50 percent, and created a cost-of-living increase for retired workers a year later” (Priya, 2013, para. 5). Therefore, from the above situations it is clear that the pension crisis situation is a predictable future situation. ...
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