Fed policy effect No. 3: Underfunded pension funds
Today's pension funds are in big trouble. Ninety-four percent of corporate defined benefit pensions were underfunded in 2012, according to a recent report by Wilshire Consulting.
Pension funds must make sure their assets grow at a pace adequate to cover future liabilities. The Wilshire report notes that today's low interest rates make this especially difficult to achieve.
"It is putting pressure on the already-weak pension system," Scott says.
But Rubin notes that pension woes are unlikely to affect large numbers of retirees.
"Most retirees don't have pensions and will not be affected," he says.
He also believes that current pension recipients are unlikely to see their payout cut. But future retirees may not be as lucky, he says.
Moore agrees. "It is hard to know if clients can depend on them for their retirement income," he says. Workers who are worried about their company's pension plan must take action now. "They need to save more or work longer, as well as delay Social Security, to maximize the benefit they will receive."