TY - JOUR T1 - Addressing Key Retirement Risks JF - The Journal of Retirement SP - 67 LP - 80 DO - 10.3905/jor.2014.2.2.067 VL - 2 IS - 2 AU - David Blanchett Y1 - 2014/10/31 UR - https://pm-research.com/content/2/2/67.abstract N2 - 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 ER -