We investigate optimal investment and drawdown decisions in retirement, and show that the asset mix and drawdown strategy vary significantly with financial circumstances and preferences. Loss aversion preferences lead to hedging strategies to secure the target consumption through use of...

This paper considers an alternative way of structuring stochastic variables in a dynamic programming framework where the model structure dictates that numerical methods of solution are necessary. Rather than estimating integrals within a Bellman equation using quadrature nodes, we use nodes...

A report on an introduction of a “flipped classroom” approach to lectures in a final-year actuarial course is presented. At the heart of the flipped classroom is moving the “delivery” of material outside of formal class time and using formal class time for students to undertake...

This article sets out principles and decision rules for setting appropriate drawdown and investment strategies during retirement given an individual’s objectives and risk tolerance. In particular, we highlight how the suitable drawdown strategy can relate to the objective, and how annuities...

This 'handbook' covers a wide range of aspects around retirement income strategies including: member attributes that matter; types of income objectives; nature of income risk; approaches to investing and drawing down on available assets; stochastic modelling; and the use of utility and metrics...

A simulation approach is used to investigate how various investment strategies affect the ability of retirees to spend at a desired level up until death. Retirees are assumed to maintain all investment and longevity risk, and also have access to a government-sponsored and means-tested Age...