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The Yin and Yang of Retirement Income Philosophies

32 Pages Posted: 17 Jan 2015  

Wade D. Pfau

The American College; McLean Asset Management

Jeremy Cooper

Challenger Limited

Date Written: November 10, 2014

Abstract

This is an Australian first: a bottom-up exploration of the range of philosophies that have been applied in generating retirement income, broken down into eight examples. What can be seen is that the eight examples sit on a spectrum from what we call 'safety-first' at one end to entirely 'probability-based' at the other end.

Keywords: Retirement income, safe withdrawal rate, probability-based, safety-first, volatility, annuity, risk, growth assets, equities, longevity risk

JEL Classification: D81, G11, J26, O16

Suggested Citation

Pfau, Wade D. and Cooper, Jeremy, The Yin and Yang of Retirement Income Philosophies (November 10, 2014). Available at SSRN: https://ssrn.com/abstract=2548114 or http://dx.doi.org/10.2139/ssrn.2548114

Wade Pfau (Contact Author)

The American College ( email )

Bryn Mawr, PA 19010
United States

HOME PAGE: http://www.retirementresearcher.com

McLean Asset Management ( email )

8200 Greensboro Dr
# 1150
McLean, VA
United States

Jeremy Cooper

Challenger Limited ( email )

Australia
+61 2 9994 7000 (Phone)
+61 2 9994 7777 (Fax)

HOME PAGE: http://www.challenger.com.au

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