What is a Credible and Safe Real Rate of Return for a GRA?

David Stubbs
Written By SCEPA

WORKING PAPER

DOWNLOAD PDF

(670 KB)

The paper looks at what returns pension funds can realistically deliver in the long term.

The question of achievable returns on pension funds now has a central place in the debate about the future of retirement. The paper looks at what returns pension funds can realistically deliver in the long term and tries to determine whether a public pension system like a GRA could guarantee a return of 3% above inflation, without an undue risk of becoming a major drag on the Federal Budget.

SCEPA
Previous

Institutions, Aggregate Demand and Cross-Country Employment
Next

Modeling a Guaranteed Retirement Account System in the United States