Modeling how public pension investments may perform over the next 20 years

In Politics by Michael Rae

In the fiscal year 2020-21, most state and local public pension plans saw double-digit investment returns. State pension plans in Arkansas and Louisiana even reported investment returns exceeding 30%. Nationwide, the median rate of investment return for state pension plans for the last fiscal year was about 27%. Despite these record-setting figures, professional forecasts of future asset growth continue to provide a less than optimistic outlook for public pension plans’ long-term investment returns over the next few decades. A survey of these market projections shows investment returns are expected to average between 5.38% and 6.25% over the next 10-to-20 years