Tag: pension

Pension Funds Start Looking to Gold to Avert Disaster

| September 2, 2020 | Category: Investing
Pension Funds Start Looking to Gold to Avert Disaster

Public and private pension plans face a dual crisis. The first and most obvious threat to pensioners is that defined-benefit vehicles are severely underfunded. By one estimate, pension systems taken as a whole are $638 billion in the red. Some are in better shape financially than others. But all pension plans will have to reckon with a second huge challenge going forward. Namely, they are already entirely unable to meet their stated return objectives by owning conventional “safe” interest-bearing instruments such as Treasury bonds. Fed Declares War on Savers The Federal Reserve has effectively declared war on savers by vowing to hold short-term interest rates near zero, likely for years […]

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