Skip to main content

Main menu

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JOR
    • Editorial Board
    • Published Ahead of Print (PAP)
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

User menu

  • Sample our Content
  • Request a Demo
  • Log in

Search

  • ADVANCED SEARCH: Discover more content by journal, author or time frame
The Journal of Retirement
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Sample our Content
  • Request a Demo
  • Log in
The Journal of Retirement

The Journal of Retirement

ADVANCED SEARCH: Discover more content by journal, author or time frame

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JOR
    • Editorial Board
    • Published Ahead of Print (PAP)
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

Securing Replacement Income with Goal-Based Retirement Investing Strategies

Lionel Martellini, Vincent Milhau and John Mulvey
The Journal of Retirement Spring 2020, jor.2019.1.062; DOI: https://doi.org/10.3905/jor.2019.1.062
Lionel Martellini
is a professor of finance at EDHEC Business School and the director of EDHEC-Risk Institute in Nice, France
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
Vincent Milhau
is a research director at EDHEC-Risk Institute, Nice, France
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
John Mulvey
is a professor of operations research and financial engineering at Princeton University and a founding member of the Bendheim Center for Finance, Princeton, NJ
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • Article
  • Info & Metrics
  • PDF (Subscribers Only)
Loading

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

To supplement retirement benefits received from public and private pension systems, individuals need to make voluntary contributions and decide how to efficiently invest these contributions. In this article, the authors analyze the problem of how to secure minimum levels of replacement income in retirement while offering attractive probabilities of reaching higher levels. Such strategies can offer an interesting alternative to target date funds, which have no focus on the generation of replacement income, or annuities, which can be used to secure replacement income but at the cost of substantial rigidity.

TOPICS: Retirement, pension funds, wealth management

Key Findings

  • • Goal-based investing principles can be used to create retirement solutions that secure a minimum level of replacement income while delivering a high probability of reaching higher levels defined as aspirational goals.

  • • These “flexicure” retirement solutions use a dedicated safe portfolio, known as a retirement goal-hedging bond portfolio (or retirement bond in short), which is a fixed-income portfolio whose cash flows (or factor exposures) match those of the stream of replacement income for a fixed period of time, say 20 years, in retirement.

  • • Such strategies use liquid building blocks, they reliably secure a clearly identified replacement income goal without requiring ad-hoc parametric assumptions, and they offer upside potential; as such they represent an attractive alternative to existing retirement products such as annuities or target date funds.

  • © 2020 Pageant Media Ltd
View Full Text

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

Log in using your username and password

Forgot your user name or password?
Next
Back to top

Explore our content to discover more relevant research

  • By topic
  • Across journals
  • From the experts
  • Monthly highlights
  • Special collections

In this issue

The Journal of Retirement: 9 (4)
The Journal of Retirement
Vol. 9, Issue 4
Race, Gender, and Retirement 2022
  • Table of Contents
  • Index by author
  • Complete Issue (PDF)
Print
Download PDF
Article Alerts
Sign In to Email Alerts with your Email Address
Email Article

Thank you for your interest in spreading the word on The Journal of Retirement.

NOTE: We only request your email address so that the person you are recommending the page to knows that you wanted them to see it, and that it is not junk mail. We do not capture any email address.

Enter multiple addresses on separate lines or separate them with commas.
Securing Replacement Income with Goal-Based Retirement Investing Strategies
(Your Name) has sent you a message from The Journal of Retirement
(Your Name) thought you would like to see the The Journal of Retirement web site.
CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
Citation Tools
Securing Replacement Income with Goal-Based Retirement Investing Strategies
Lionel Martellini, Vincent Milhau, John Mulvey
The Journal of Retirement Jan 2020, jor.2019.1.062; DOI: 10.3905/jor.2019.1.062

Citation Manager Formats

  • BibTeX
  • Bookends
  • EasyBib
  • EndNote (tagged)
  • EndNote 8 (xml)
  • Medlars
  • Mendeley
  • Papers
  • RefWorks Tagged
  • Ref Manager
  • RIS
  • Zotero
Save To My Folders
Share
Securing Replacement Income with Goal-Based Retirement Investing Strategies
Lionel Martellini, Vincent Milhau, John Mulvey
The Journal of Retirement Jan 2020, jor.2019.1.062; DOI: 10.3905/jor.2019.1.062
del.icio.us logo Digg logo Reddit logo Twitter logo Facebook logo Google logo LinkedIn logo Mendeley logo
Tweet Widget Facebook Like LinkedIn logo

Jump to section

  • Article
    • Abstract
    • INTRODUCING A “RETIREMENT BOND”
    • MAXIMIZING THE PROBABILITY OF REACHING AN ASPIRATIONAL GOAL
    • GUARANTEEING A MINIMUM LEVEL OF REPLACEMENT INCOME
    • COMPARISON OF SUCCESS PROBABILITIES
    • CONCLUSION
    • ACKNOWLEDGMENT
    • ADDITIONAL READING
    • APPENDIX A
    • APPENDIX B
    • APPENDIX C
    • APPENDIX D
    • ENDNOTES
    • REFERENCES
  • Info & Metrics
  • PDF (Subscribers Only)
  • PDF (Subscribers Only)

Similar Articles

Cited By...

  • No citing articles found.
  • Google Scholar
LONDON
One London Wall, London, EC2Y 5EA
United Kingdom
+44 207 139 1600
 
NEW YORK
41 Madison Avenue, New York, NY 10010
USA
+1 646 931 9045
pm-research@pageantmedia.com
 

Stay Connected

  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

MORE FROM PMR

  • Home
  • Awards
  • Investment Guides
  • Videos
  • About PMR

INFORMATION FOR

  • Academics
  • Agents
  • Authors
  • Content Usage Terms

GET INVOLVED

  • Advertise
  • Publish
  • Article Licensing
  • Contact Us
  • Subscribe Now
  • Log In
  • Update your profile
  • Give us your feedback

© 2022 Pageant Media Ltd | All Rights Reserved | ISSN: 2326-6899 | E-ISSN: 2326-6902

  • Site Map
  • Terms & Conditions
  • Cookies
  • Privacy Policy