I somehow got downvoted for pointing this out yesterday, but with target return rates of 7-8%, pensions can't invest in what most of us would consider a prudent

I somehow got downvoted for pointing this out yesterday, but with target return rates of 7-8%, pensions can't invest in what most of us would consider a prudent portfolio. At least not in a low inflation environment (since targets seem to all be nominal rather than real). While I would agree that a pension fund shouldn't be in all equities (or investment with similar risk profiles) if the fund managers are mandated to target 7.5% returns its hard to see how they can include a sizable cash or treasury component and expect to hit that.