Public pensions overestimating future returns, says study

Large public retirement funds, particularly in the US, have unrealistically high investment return targets for the coming years, despite the likelihood of long-lasting ultra-low rates, finds a new study by the Official Monetary and Financial Institutions Forum (Omfif). The overly high expectations threaten to leave the pension plans under-equipped to meet rising future retiree needs, and are underpinning the broader shift into alternative assets. While the funds have reduced the…