Detroit’s bankruptcy struck me as a shock to the financial plans of all of the City’s retirees and pensioners. The huge backlash against Detroit is because it has filed bankruptcy in, primarily, an effort to cut the pensions of its employees and retired employees.
Workers in the private sector have had to deal with fears of underfunded pension funds for some time. Many people worry whether social security benefits be cut by the time they are eligible to receive them. What’s different with Detroit is that people have long believed that government pensions were safe and they had little to worry about.
The message I think people should receive is to plan for your retirement. Whether or not you consult an Estate Planning attorney, everyone now has to consider how safe are their assets? How can they make sure they have enough money for retirement, even if they work, or worked, for the government.