Unfunded Liabilities Explained in One Minute: From Definition to Tricky Unfunded Liability Examples

You might have at least occasionally come across analysts who expressed concern with respect to the sustainability of our financial system and referred to unfunded liabilities as one of the most important threats.

This video explains what these (in)famous unfunded liabilities are all about, from the definition (or meaning, if you will) of the term to examples which make it easy to understand how things work with unfunded liabilities.

The pension system of a country can represent an example of an unfunded liability that is let's say tricky... to say the least.

At the end of the day, unsustainable unfunded liabilities can be considered a byproduct of the political system of a country, with for example politicians being eager to make generous pension-related promises without thinking all that much about the future.

Once you understand the definition of unfunded liabilities, it shouldn't be complicated to connect the dots by going through examples of present-day tricky unfunded liability examples.

This video is simply here to define and explain a concept, which conclusions you draw and where you take things from here is entirely up to you :)