IDEAS home Printed from https://ideas.repec.org/a/taf/ufajxx/v77y2021i2p5-20.html
   My bibliography  Save this article

Retirement Income Sufficiency through Personalised Glidepaths

Author

Listed:
  • Michael E. Drew
  • Jason M. West

Abstract

Portfolio “glidepaths” accommodate growth in a worker’s early working life and transition to lower risk settings as the worker nears retirement. The success of this design hinges on its objective of amassing wealth at the date of retirement, but the design offers little in the way of a solution for the provision of income during retirement. The relevant risk for workers is retirement income uncertainty. Allocating investments through time to satisfy an income goal is not equivalent to the maximisation of wealth at retirement. We demonstrate that glidepaths can be personalised for individuals to maximise expected retirement income sufficiency under a range of assumptions, including longevity risk.Disclosure: The authors report no conflicts of interest. Editor’s Note: Submitted 18 November 2020Accepted 11 January 2021 by Stephen J. Brown

Suggested Citation

  • Michael E. Drew & Jason M. West, 2021. "Retirement Income Sufficiency through Personalised Glidepaths," Financial Analysts Journal, Taylor & Francis Journals, vol. 77(2), pages 5-20, April.
    • Handle: RePEc:taf:ufajxx:v:77:y:2021:i:2:p:5-20
    DOI: 10.1080/0015198X.2021.1877981
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/0015198X.2021.1877981
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/0015198X.2021.1877981?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:ufajxx:v:77:y:2021:i:2:p:5-20. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/ufaj20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.