Since the Puerto Rican Governor announced last month that his island cannot pay back the $72B they owe, it has become apparent that he wasn’t bluffing. Today, the Financial Times reported, “Puerto Rico faces a $28bn financing gap over the next five years, top officials and outside advisers to the government warned on Wednesday.” Puerto Rico is a glittering jewel of what you find when you reach the end of failed socialist policies. Liberal politicians made promises that bought alot of votes, but when it came time to pay for those promises, Puerto Ricans discovered they were empty.
Retired government employees and teachers are discovering that they never should have trusted their retirement to a system run by bureaucrats. Now they are left to wonder if they will be able to survive their golden years with dignity or beg for the highly competitive position of Wal-Mart greeter. Americans should take heed from lessons being given in this tiny U.S. territory because they will be taught here one day soon.
According to a recent CNBC survey, “Baby boomers and seniors said that their biggest financial challenge was planning for retirement, while younger people were most concerned with paying for college and sticking to a budget.” The same survey also indicated that the biggest fear for baby boomers, those aged 55-64, is “Never being able to retire.” If Puerto Rico is a harbinger of things to come, then these baby boomer fears are not misplaced.