Pension fund managers and retirement savers could face lower-than-assumed investment returns over the long term using realistic projections. The implications would be bigger pension liabilities for some defined-benefit pension plans, and a need to save more and work longer for individual savers, if they are to avoid a larger-than-expected drop in their retirement lifestyles. Editor's Note: If the professional pension fund managers are faced with low investment returns, then so do individual investors!
Prospectively, using information available as of February 2013, we predict long-term returns in the neighbourhood of 2.5 percent (0.5 percent real) on long-term bonds and of 6.9 percent (4.8 percent real) on stocks. For a balanced portfolio (50/50 split), we therefore expect a real return of 2.7 percent for the next decade.
Great summary of investment performance - monthly, quarter, Year to date and 1-year stats. Updated performance data: stocks, bonds, mixed portfolios, etc.