What I Learned This Week

The looming pension crisis (continued): America is poised for generational war if cash-strapped millennials are forced to pay for the underfunded retirements of baby boomers.

There may be no chart that better captures the dynamic that will define America’s political future than the one below: Source: The Financial Times Will millennials, arguably the worst-off generation in American history, agree to subsidize the retirements of baby boomers? As we have warned in these pages for years, the roughly $12 trillion U.S. pension system was in dire financial shape even before COVID. As of the end of 2019, the average funding ratio for public pension plans was just 60%, with more than $1.5 trillion in liabilities unfunded. The picture for corporate plans was only slightly better, with the funding status of plans sponsored by S&P 1,500 companies…

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