Bad news… Retirement savers with some (or all) of their assets tied up in a private pension could be facing a nightmare scenario sooner than expected.
Both public and private pensions have been in trouble for quite some time. But it appears private pensions are in the hot seat again. But this time, it’s not a self-inflicted problem…
On the horns of the risk management dilemma
Why? Because, according to Financial Times, some pension plans are (again) facing a predicament. In the “new normal” world of negative real interest rates, it becomes impossible to generate a positive return by investing in conservative, low-risk assets.