US Pensions Are Massively Underfunded, And Have Ridiculously Rosy Assumptions

The world still thinks in nominal or US dollar returns. 7.8% is completely doable under the Weimer Model, but the return will be an illusion. Real or constant currency returns, rarely quoted in general media, is the critical metric for establishing purchasing power and standard of livings.

The country's 15 biggest public pension systems have an average expected return of 7.8%, and only a handful recently have changed or are reconsidering those return assumptions, according to a survey of those funds by The Wall Street Journal.

Source: businessinsider.com