The Traderszone Network

Published in TZ Latest News 28 June, 2015 by The TZ Newswire Staff

Pension Funds Are "Compromising Their Solvency" OECD Warns

Four months ago in “The Global War On Pensioners”, we highlighted the impact perpetually suppressed risk-free rates are having on pension funds. The critical point is this: the lower the investment return assumption (the assumed discount rate), the higher the present value of pension liabilities, meaning funds must either concede that liabilities have ballooned in the low yield environment, or take greater risks to justify elevated investment return assumptions. 

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