@article {Chenjor.2022.1.118, author = {Anran Chen and Steven Haberman and Stephen Thomas}, title = {Adaptive Retirement Planning, Sustainable Withdrawals, and Deferred Annuities}, elocation-id = {jor.2022.1.118}, year = {2022}, doi = {10.3905/jor.2022.1.118}, publisher = {Institutional Investor Journals Umbrella}, abstract = {In this article, we integrate investment decisions in the post-retirement period with the inclusion of a deferred annuity (DA) to provide a lifetime decumulation solution. We use the perfect withdrawal rate (PWR) as a tool to make recommendations on withdrawal rates and asset allocations. We illustrate how cheap it is to use a DA to deal with longevity risk. Moreover, if an individual wants to maximize median PWR, they should allocate almost 100\% in stocks. If an individual wants to maximize minimum PWR, they should allocate 40\%{\textendash}60\% in stocks. A substantial stocks component should therefore be maintained throughout the retirement period as a new {\textquotedblleft}normal{\textquotedblright} asset allocation.}, issn = {2326-6899}, URL = {https://jor.pm-research.com/content/early/2022/10/06/jor.2022.1.118}, eprint = {https://jor.pm-research.com/content/early/2022/10/06/jor.2022.1.118.full.pdf}, journal = {The Journal of Retirement} }