Principles and Rules for Translating Retirement Objectives into Strategies

8 Pages Posted: 18 Feb 2021

See all articles by Adam Butt

Adam Butt

Australian National University - Research School of Finance, Actuarial Studies & Statistics

Gaurav Khemka

Australian National University (ANU)

Geoff Warren

Australian National University (ANU) - Research School of Finance, Actuarial Studies and Statistics

Date Written: February 1, 2021

Abstract

This article sets out principles and decision rules for setting appropriate drawdown and investment strategies during retirement given an individual’s objectives and risk tolerance. In particular, we highlight how the suitable drawdown strategy can relate to the objective, and how annuities might be combined with other investments to help manage risk. Our aim is to offer research-based guidance to product providers, financial advisers and individuals in formulating retirement strategies.

Keywords: Retirement savings, portfolio choice, drawdown strategies, product design, financial planning

JEL Classification: D14, D91, E21, G11, G23

Suggested Citation

Butt, Adam and Khemka, Gaurav and Warren, Geoffrey J., Principles and Rules for Translating Retirement Objectives into Strategies (February 1, 2021). Available at SSRN: https://ssrn.com/abstract=3777664 or http://dx.doi.org/10.2139/ssrn.3777664

Adam Butt

Australian National University - Research School of Finance, Actuarial Studies & Statistics ( email )

Canberra, Australian Capital Territory 2601
Australia

Gaurav Khemka

Australian National University (ANU) ( email )

Canberra, Australian Capital Territory 2601
Australia

Geoffrey J. Warren (Contact Author)

Australian National University (ANU) - Research School of Finance, Actuarial Studies and Statistics ( email )

CBE Building 26C
Kingsley Sreet, Acton
Canberra, ACT 0200
Australia

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