Sponsor White Paper: The role of asset allocation in navigating the retirement risk zone

Australia’s superannuation industry is well into its third decade of development. By 2040 it is expected that our super system will hold $9 trillion in assets. With an ageing population the issue of sustainable retirement income is critical to Australia’s wellbeing. The Financial System Inquiry has called for bipartisan support to enshrine the objectives of the superannuation system in legislation:

“To provide income in retirement to substitute or supplement the Age Pension.”

What is the role of asset allocation in preparing for retirement?

A simple, yet effective strategy that considers portfolio targets, the financial risks associated with approaching retirement, and market tracking techniques can dramatically improve sustainability of superannuation savings. Such a strategy is capable of substantially outperforming atypical — and often static — investment strategies.

This approach proposed by Michael Drew, Adam Walk and Jason West considers one’s entire lifetime, the portfolio’s adequacy and market performance. It is both simple and dynamic enough to deal with the realities of retirement income.

The full White Paper, The Role of Asset Allocation in Navigating the Retirement Risk Zone, is available here.

Sponsor White Papers

Wikipedia defines a White Paper as “an authoritative report or guide informing in a concise manner about a complex issue and presenting the issuing body’s philosophy on the matter. It is meant to help readers understand an issue, solve a problem, or make a decision.”

Cuffelinks includes this section to allow our sponsors to share their longer research or opinion pieces with our audience without editing or comment by us. They are provided for general education purposes and do not address the specific needs or circumstances of any investor.

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