U.S. pension funds are underfunded even when allowing them their projected 8% annual return....

|By:, SA News Editor

U.S. pension funds are underfunded even when allowing them their projected 8% annual return. Given a risk-free rate of 4%, not only is 8% unrealistic, but the scramble for yield could result in something worse. Imagine 0% returns for 20 years. "Fingers crossed and eyes closed" isn't an acceptable strategy.