As many know by now, workers and retirees for that troubled city, which has an underfunded pension liability of some $3.5 billion, face the possibility that their pensions could be reduced drastically in a worst-case scenario. Read more
A hearing to determine whether a lawsuit by the city’s 20,000-plus retired public employees can block the bankruptcy is scheduled to be held Wednesday. (See Detroit retirees brace for pension cuts.)
But no matter what happens, experts say that now would be a good time for public-sector workers and retirees—especially those whose employers have underfunded pensions—to revisit their retirement plan, crunch out a few what-if scenarios, and adjust their current or planned lifestyle accordingly.
Retirement planning isn't a "set it and forget it" exercise. It's generally a good idea to revisit one's retirement plans periodically to confirm that all assumptions still hold and that one is still on track, so any adjustments can be made as early as possible.
It makes good sense to "prepare for the worst and hope for the best".