News
More efficient capital management could help pension funds strained by longer life expectancy
Published: 22 June 2022
Canadians are living longer than ever. Life expectancy at retirement has increased by about four years since 1980. This creates a cash crunch for pension funds. Increasing current plan members contributions is one way to address this, but more efficient capital management can help too. Pension funds have a distinct advantage over other investors, argues Prof. Sebastien Betermier in Policy Options. Many of their liabilities are not due for decades, which allows pension funds to weather short-term market fluctuations and implement strategies that earn high returns over the long run.
听
Feedback
For more information or if you would like to report an error, please web.desautels [at] mcgill.ca (subject: Website%20News%20Comments) (contact us).