Korea pensions play too safe: Towers Watson

Korean corporate pension plans are too focused on cash preservation rather than returns, raising potential questions about their ability to pay pensions in the long term, says Towers Watson. In its annual Korea pension report, the consultancy’s research shows 93% of corporate pension plan assets are allocated to principal-guaranteed products, of which 58% is invested in cash instruments. Term savings and guaranteed insurance contracts (GICs) dominate the portfolios. “This conser…