At Total Financial Solutions, President/CEO Arif Halaby is talking about how what he’s calling “pension envy” is starting to appear amidst the ongoing California pension crisis.

As more people nearing retirement start to realize that major reform is needed in the pension system, instead of agreeing to sacrifice a portion of their own payout during retirement, many individuals are calling to cut benefits for future retirees instead, according to Halaby, a Certified Estate Planner.

“None of you that are expecting a pension want to change,” Halaby said. “(You) think they should change it for those new hired people, for those new people, those young people.”

Related: Total Financial Solutions: Having Purpose In Retirement

Coined “pension envy,” Halaby said that this younger generation of workers will be doing the same job as the older generation, but their retirement will likely look drastically different. This could mean they need to work more years before they can retire and will get less benefits as a result.

“When we say ‘pension envy,’ we’re talking about the push by the folks that are going to be receiving pensions. They see the writing on the wall, they know there aren’t enough people coming on board, they know that more and more people are retiring… There just isn’t enough money, so they’re saying, ‘No problem. Don’t touch mine, but that new person that just got hired, let’s fix their pension. Let’s reduce it,’” Halaby explained. “How about equal pension for equal work?”

With this “pension envy” mindset becoming more and more prevalent, Halaby advised anyone expecting a pension in their retirement to plan for other sources of income as well, and not rely too heavily on promises made by a system that seems to be crashing fast.

“I am telling you, if you are expecting a pension in the next 10 years or so, please lower your expectations,” Halaby said. “The only way that they can deliver on these promises, the only way is to either completely collapse the system — and I’m leaning that that’s going to be the direction — or they have to completely change it.”

Halaby noted that if — and when, in his opinion — this happens, retirees who didn’t plan for it will be forced to cut back on the way they live, but those who did plan for it can draw from other retirement accounts to maintain their lifestyle.

Planning for multiple sources of income in retirement based on the best choices for your individual situation is what Halaby and his team at Total Financial Solutions specialize in, and they can help you secure your financial future without relying on anyone else.

“Here’s part of what we do — as more and more people are retiring because they’re turning that age, and because they expect and suspect that there may be some changes to the pension system, as that process takes place there should be more of a push for you to be responsible for yourself,” Halaby said. “You have to protect you and your family, and that’s what Total Financial Solutions is all about.”

Total Financial Solutions offers assistance with preparing for retirement in Santa Clarita and the surrounding valleys. Santa Clarita financial professional Arif Halaby, a Certified Estate Planner, and Total Financial Solutions staff work with people of all ages, helping them protect, grow and preserve their assets through an individualized approach. As a well-known financial professional, Arif Halaby is also the host of “Total Financial Solutions Safer Money Hour” on KHTS AM-1220. Launched in 2004, the show offers listeners retirement planning tips and guidance for dealing with today’s ever-changing financial needs.  

Total Financial Solutions, Inc.

24322 Main Street

Newhall, CA 91321

661-753-9683

800-990-7344

Total Financial Solutions – Newhall

https://www.youtube.com/watch?v=L8l3BchPQ5w

Arif Halaby, Total Financial Solutions, Financial Planning, Planning for Retirement, Retirement Planning