Asset Allocation and Age Effects in Retirement Savings Choices

19 Pages Posted: 4 Jun 2010

See all articles by Paul Gerrans

Paul Gerrans

The University of Western Australia - UWA Business School

Marilyn Clark-Murphy

School of Finance and Business Economics

Craig Speelman

Edith Cowan University

Abstract

We examine the asset allocation decisions of members of three large Australian retirement savings funds. Superannuation Guarantee legislation in 1992 made Australian employees compulsory investors by requiring employers to contribute a fixed proportion of earnings to a superannuation fund on behalf of employees. A majority of these employees can choose an investment strategy for these contributions. We examine how actual investment strategy and asset allocation choices of members change with age in view of the conventional wisdom that individuals allocate less to risky assets as they age and investments theory which provides conflicting advice on the issue.

Suggested Citation

Gerrans, Paul and Clark-Murphy, Marilyn and Speelman, Craig, Asset Allocation and Age Effects in Retirement Savings Choices. Accounting & Finance, Vol. 50, Issue 2, pp. 301-319, June 2010. Available at SSRN: https://ssrn.com/abstract=1615755 or http://dx.doi.org/10.1111/j.1467-629X.2009.00330.x

Paul Gerrans (Contact Author)

The University of Western Australia - UWA Business School ( email )

Crawley, Western Australia 6009
Australia
61 8 64882910 (Phone)

Marilyn Clark-Murphy

School of Finance and Business Economics ( email )

100 Joondalup Drive
Joondalup, WA 6027
Australia

Craig Speelman

Edith Cowan University ( email )

School of Psychology and Social Science
270 Joondalup Drive
Joondalup, 6027
Australia
61-8-6304 5724 (Phone)

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