Click to login and read the full article.
Don’t have access? Click here to request a demo
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600
Abstract
Both retirees and their employers can benefit from combining conventional DC-type savings plans, designed to be spent down in the early part (say, the first 20 years) of retirement, with a DB-like or deferred life annuity component guaranteeing income for the rest of the retiree’s life in order to hedge the risk of living too long. Earlier articles proposed to do this using a riskless investment strategy, and the authors build on the previous work by asserting that the DC-type investment will (and should) include equities. Through simulation, the authors show that either a high-risk (equity-heavy) or low-risk (fixed income-heavy) DC component plus a deferred annuity component dominates a conventional DC spend-down, from the standpoint of generating sustainable retirement income, in most states of the world.
- © 2019 Pageant Media Ltd
Don’t have access? Click here to request a demo
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600