The retirement risk zone: A baseline study
MetadataShow full item record
This paper undertakes a baseline study to explore the heady mix of the portfolio size effect and sequencing risk facing superannuants within the retirement risk zone. It explores the impact on retirement outcomes when portfolios are subjected to a single sequencing risk event at different points through a member's investing life. We report sensitivities between the timing (or sequence) of a negative return event on terminal wealth outcomes and the associated impact on longevity risk. Our findings suggest that greater priority needs to be given to sequencing risk earlier in a member's accumulation phase than convention suggests.
© 2012 JASSA and the Authors. The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.