Recent asset pricing studies suggest that demand for stocks since 1980 has driven expected returns below their historical average. The current yield of risk-free assets in the U.S. is also well below historical bond yields. This decrease in bond yields, coupled with increases in longevity, has...

Numerous studies about sustainable withdrawal rates from retirement savings have been published, but they are overwhelmingly based on the same underlying data for US asset returns since 1926. From an international perspective, the United States enjoyed a particularly favorable climate for asset...

To manage market and longevity risk, Dr. Pfau shows how the use of life insurance and income annuities, as fixed income assets in a portfolio, can better hedge a retiree’s retirement-income needs as a portfolio volatility reduction tool

This paper challenges conventional wisdom about the use and value of single premium immediate annuities (SPIAs). In fact, the authors suggest that the primary scenarios where SPIAs should be used are specifically those where the intent is to hedge significant longevity risk beyond life...

Given its tax-preferential treatment, careful study is warranted to determine whether life insurance can play an important role in an overall retirement portfolio. This study develops hypothetical scenarios for different types of individuals with varying ages and distribution periods, while...