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dc.contributor.authorDoran, Brett
dc.contributor.authorDrew, Michael E.
dc.contributor.authorWalk, Adam N.
dc.contributor.editorAkimov, Alexandr
dc.date.accessioned2020-01-16T07:45:28Z
dc.date.available2020-01-16T07:45:28Z
dc.date.issued2012
dc.identifier.issn1836-8123
dc.identifier.otherRePEc:gri:fpaper:finance:201207
dc.identifier.urihttp://hdl.handle.net/10072/390459
dc.description.abstractThe retirement risk zone is commonly defined as the final decade of working life and the first decade of retirement. This paper undertakes a baseline study to explore the heady mix of the portfolio size effect (when the bulk of retirement savings are in play) and sequencing risk (the timing of a nasty market event) facing superannuants within this zone. The baseline approach adopted in this paper explores one idea, specifically, the impact on retirement outcomes when portfolios are subjected to a single sequencing risk event at different points through the members' investing life. We report sensitivities between the timing (or sequence) of a negative return event on terminal wealth outcomes and associated impact on longevity risk. Finally, we find an asymmetry in the impact of sequencing risk across the pre-and post retirement phases, suggesting that great priority needs to be given to the issue of sequencing risk earlier in the members' accumulation phase (say, 15 to 20 years prior to retirement) than convention suggests.
dc.format.extent13 pages
dc.languageEnglish
dc.publisherGriffith University
dc.publisher.placeBrisbane, Australia
dc.relation.ispartofpagefrom1
dc.relation.ispartofpageto13
dc.subject.keywordsG11 - Portfolio Choice; Investment Decisions
dc.subject.keywordsG23 - Pension Funds; Other Private Financial Institutions; Institutional Investors
dc.subject.keywordsRetirement risk zone
dc.subject.keywordsSequencing risk
dc.subject.keywordsLongevity risk
dc.title2012-07: The Retirement Risk Zone: A Baseline Study (Working paper)
dc.typeReport
dc.type.descriptionDiscussion Paper
gro.facultyGriffith Business School
gro.description.notepublicFinance
gro.rights.copyrightCopyright © 2010 by author(s). No part of this paper may be reproduced in any form, or stored in a retrieval system, without prior permission of the author(s).
gro.date.issued2012
gro.hasfulltextFull Text
gro.griffith.authorDrew, Michael E.


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