Retirement represents a milestone for most adults, but despite the feelings of adventure and excitement that come with leaving the working world, retirement must first be viewed through a financial lens. The ability to generate income in one’s elderly years is limited, and no one wants to be a burden on their family or the state. That said, there are social security programs and savings vehicles that are designed to help individuals prepare for their big vacation.

Pensions are a large reason why many can afford to leave their careers and take a deserving retirement, but they used to be more prominent. Unfortunately, the days of working for one company and being rewarded with a guaranteed lifelong pension are over. Pensions of course still exist for many companies, but many have struggled to make good on the promises to their former employees, given harsh realities in the global economy. Trends like the onset of automation and modern medicine converge to put pressure on the bottom line while extending their obligations to former employees.

What hasn’t changed is the number of people who still rely on pensions. Their situation is becoming precarious due to the threats facing major pension funds around the world. Funds tasked with paying out monthly stipends are struggling to make good on their projected return promises, with many of them suffering from a lack of funding as obligations rise. The risks of default are great, not only to retirees but also to the whole economy.

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