PT  - JOURNAL ARTICLE
AU  - David Blanchett
TI  - Addressing Key Retirement Risks
AID  - 10.3905/jor.2014.2.2.067
DP  - 2014 Oct 31
TA  - The Journal of Retirement
PG  - 67--80
VI  - 2
IP  - 2
4099  - https://pm-research.com/content/2/2/67.short
4100  - https://pm-research.com/content/2/2/67.full
AB  - This article introduces a new model to jointly determine the optimal allocation to equities, real assets, and annuities for a retiree with a given set of preferences. This model improves on a number of existing retirement income models by directly incorporating a cost associated with deviating from the investor’s target risk preference, jointly testing the effects of four preference variables—aversion to volatility, strength of a bequest motive, preference for sustainable expenditure, and sensitivity to the risk of future inflation—using a dynamic withdrawal strategy and taking a probabilistic approach to mortality.TOPICS: Retirement, risk management, portfolio construction