Decreasing commercial real estate prices accelerate the pension funding gap

Pension funds may be even more underfunded than believed; decreasing commercial real estate prices may significantly reduce their value. These funds are highly impacted by the potential decline in value as they hold debt used to finance office towers. While pension payments may be reduced, it is unlikely that they will go to zero to ensure pensioners still receive some payment. However, attempting to shift economic guarantees even slightly can have significant repercussions, as seen in the example of Paris. The potential bankruptcy of social security could also affect pension payments, leading to the government issuing new dollars and causing economic uncertainty.