Corporate pension plan managers continue to forecast rosy long-term returns of 7.5%. Given a...

|By:, SA News Editor

Corporate pension plan managers continue to forecast rosy long-term returns of 7.5%. Given a "risk-free" rate stuck south of 2%, this implies an equity return of more than 10%. The reason is obvious - higher forecast return means lower contributions are necessary, bettering profits now for likely pain later. "The path of least resistance appears to be total denial," writes SocGen.