We investigate risk presentations in retirement savings decisions using a discrete choice experiment where subjects choose between a bank account, a growth account and a 50:50 account. Using nine standard formats for investment risk, we analyze responses to risk per se and to format changes....

Past research on the topic of sustainable withdrawal rates has primarily focused on longer distribution periods which apply to younger age retirees.A structural problem with pensions, annuities, and first generation "safe withdrawal rate" is a disconnect of benefits paid (fixed or fixed with...

The Australian Government uses the means-test as a way of managing the pension budget. Changes in Age Pension policy impose difficulties in retirement modelling due to policy risk, but any major changes tend to be ‘grandfathered' meaning that current retirees are exempt from the new changes....

Investors face a long and uncertain journey to retirement and beyond, particularly when investing in new defined contribution schemes such as New Zealand's KiwiSaver. This paper seeks to provide positive insights into the design of KiwiSaver by assessing the recently announced move from 4 to 6%...

I solve the life-cycle portfolio allocation problem of a disappointment averse (DA) agent with labor income risk. DA preferences overweight disappointing outcomes and are consistent with behavior highlighted by the Allais paradox. I show that unlike constant relative risk aversion (CRRA)...

A line of recent studies cast doubt on the efficacy of the lifecycle investment strategy, which calls for switching into a more conservative investment portfolio as retirement approaches, as a suitable way to provide for the retirement needs of workers with defined-contribution pensions. After...