America’s Pension Problem Deepens As GE Freezes Employee Retirement Benefits; Time For BTC
General Electric has decided to freeze all retirement benefits for 20,000 of its employees, in an attempt to save $8 billion in pension deficit's, deepening America's already deteriorating pension problems. When a pension is frozen, it no longer shows earnings for the companies or the holders, but it is still federally insured.
Teresa Ghilarducci, a labor economist and director of The New School’s Schwartz Center for Economic Policy Analysis said,
“Every time we see someone lose a defined-benefit plan, we see that they’ve lost all of the sacrifices they have made. Almost all workers in defined-benefit plans have given up a lot of raises in the past so not only do they lose a secure income for the rest of their lives — but they also lost all of those past wages they’ll never get back.”
GE is not the first American firm to do away with pension benefits for employees, however being one of the traditional American firms, its impact on the market and investors would be much worse than others. The era of companies removing pension benefits came after the introduction of 401(k) plans, which put the responsibility on employees to save for their own futures.
Investors Need to Think of Bitcoin
GE has made the decision to cut all post-retirement benefits for its employees and instead contribute a portion of employee salary to the 401(k) plan. The investment for the plan would be selected by a group of individuals screened by the firm themselves. This move would definitely put more risks on the investors who might eventually look for assets that have a better risk/reward ratio.
At present, there is no better asset than Bitcoin with 115% year to day returns. Bitcoin is currently in a consolidating phase and yet it has managed to outperform any other asset class by a very large margin.
Looking at different asset classes, hedge funds have made only 5% returns in 2019 while the stock markets have managed 21% returns this year. And the crumbling world economy and increasing debts are no secret. The world has started to bank big on Bitcoin already, with major institutional players diving into the crypto market in hopes of diversifying their investment, its time other investors start to look up for option which can not be frozen by any authority.
People have already seen their investments in the retirement fund in the form of hedge funds diminish over the years, it might be the time to turn heads towards Bitcoin.