A building block approach to retirement income design

被引:0
作者
Khemka, Gaurav [1 ]
Butt, Adam [1 ]
Mehry, Shams [1 ]
机构
[1] Australian Natl Univ, Res Sch Finance Actuarial Studies & Stat, Canberra, ACT 2601, Australia
关键词
building blocks; default design; mortality credits; retirement income; retirement portfolio design; C61; D14; D15; LIFETIME PORTFOLIO SELECTION; OPTIMAL CONSUMPTION; ANNUITIES; MORTALITY; CHOICE; RISK; ANNUITIZATION; UNCERTAINTY; INVESTMENT; ALLOCATION;
D O I
10.1017/S1474747224000076
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
This paper addresses the retirement income planning problem from the perspective of the four main building blocks of retirement income: state pension, mortality credits, investment strategies, and drawdown schedules. We detail how these building blocks interact to form a retiree's overall retirement income portfolio, and what trade-offs and interactions must be considered. We find that while access to each building block increases the retiree's certainty equivalent consumption, the most substantial contributor to this increase is from utilization of the mortality credit building block (i.e., annuities).
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收藏
页数:21
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