A panel of government-appointed experts has recommended that more funds from public pension policies be invested in stocks and other relatively high-risk assets in place of the current practice of chiefly buying government bonds, a shift one welfare ministry official warned could threaten the financial security of seniors.

In its final report, the council said Wednesday that the investment policy should be reviewed as a way to address a potential downside risk for bond prices due to rises in interest rates as the government pulls the economy out of deflation through stimulus measures.

The panel, chaired by Takatoshi Ito, a professor at the University of Tokyo, looked into a total of ¥200 trillion in public pension programs and assets held by national universities and other public entities.