Tag Archives | Challenger

collective income schemes

Schemes designed to deal with longevity risk

With the availability of large pools of retirees, the law of large numbers will start to see a predictable distribution of lifespans around the mean, allowing for longevity risk products. An important development.

build super system, Royal Commission; caution

Time to build a super system fit for retirement

Life expectancies have increased dramatically since the nineties, but the uncertainty is forcing retirees to live too frugally. The super industry is switching its attention to the drawdown phase to find better solutions.

Defined benefit pensions, retirement income products

It’s not a shock that retirement is different

We need different tools to measure success in the retirement phase, as many people become dependent on the cash flow from their super fund. The defined contribution system has failed to keep pace with retirees’ needs.

income challenge; retirement Two 60th birthdays

Understand the retirement income challenge

It’s often assumed one of the primary aims of wealth accumulation is to leave money for the kids, but retirees realise their own longevity means they need to look after their retirement first.

safe havens

Why 10/30/60 is no longer the rule

The old investment rule that assumed the majority of retirement income would come from late-stage earnings no longer applies when returns are low, placing more importance on early accumulation.

equity risk premium

Spinning the wheel in retirement

Contrary to popular belief, there are significant variations in equity returns over long periods such as 20 years. Whether you will earn the ‘equity risk premium’ is far from certain.

Jeremy Cooper

The comprehensive income product for retirement

The idea behind comprehensive income products for retirement, or CIPRs, is to provide retirees with a product that can generate a good income, manage risks and remain flexible. We need a scorecard to understand them better.

Long term annuities

Jeremy Cooper answers a question from one of our subscribers about the risk profile, regulatory standards and track record of lifetime annuities. If you have something to add, we invite you to join the debate.

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