TY - JOUR T1 - Post-Retirement Labor and Non-Retirement Risky Asset Allocation JF - The Journal of Retirement SP - 112 LP - 123 DO - 10.3905/jor.2021.1.087 VL - 9 IS - 1 AU - Gary Curnutt AU - Qi Sun AU - Michael Guillemette Y1 - 2021/07/31 UR - https://pm-research.com/content/9/1/112.abstract N2 - This article studies how post-retirement labor is related to non-retirement risky asset allocation. By using panel data from the 1992–2018 Health and Retirement Study, this article empirically finds a negative relationship over time between non-retirement risky asset allocation and post-retirement labor. Furthermore, this article explores the forced retirement risk (a type of labor income risk) for the post-retirement labor group. Descriptive findings indicate that members of the post-retirement labor group have a greater risk of being forced to retire, and the trend of forced retirement risk is inversely related to equity returns. This latter finding suggests a potential correlation between forced retirement risk and stock returns. If an individual’s human capital is at greater risk or becomes more stock-like (i.e., labor income risk correlates with stock returns), then investing in fewer risky assets would be justifiable. When both of these findings are accounted for, they corroborate the findings of this article: Post-retirement labor is negatively associated with risky asset allocation.TOPICS: Retirement, risk management, performance measurement, legal/regulatory/public policyKey Findings▪ Post-retirement labor is negatively associated with non-retirement risky asset allocation.▪ Forced retirement risk, a labor income risk, may be correlated with equity returns, explaining the current findings in light of previous literature and theory. ▪ Ex-retirees may rely on investment advice that is inherently founded on a view of their human capital as a bond-like asset. However, the risk characteristics of their human capital may differ fundamentally from those of other labor groups, requiring more tailored financial advice. ER -