“NEW YORK (Reuters) – U.S. companies are expected to contribute $70 billion to their pensions in 2013 with about 40 percent of the money going into bonds, a UBS analyst said in a research note released on Friday.
The amount is below the estimated $80 billion in pension contribution made last year.
Although stocks and other risky investments have fared well since mid-2012, many corporate pensions remain underfunded and cannot depend on strong future returns on equities and higher-yielding vehicles to meet their obligations, according to UBS analyst Boris Rjavinski.
A U.S. corporate pension on average is underfunded by 15 to 25 percent….”
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Pension? Must be nice.