We propose a ‘buy, hold, sell’ (BHS) deterministic lifecycle strategy that involves buying and holding assets until they are sold to generate income. Savings are invested entirely into a risky portfolio until a pre-specified ‘switch age’ and then entirely into a risk-free portfolio after...

We analyze the ability of different investment strategies to give pre-retirees more certainty about their income in retirement, while allowing them to benefit from taking investment risk. Specifically, we look at the optimal strategies that maximize the expected values of a loss aversion utility...

Pension investors are exposed to the risk of inflation eroding the purchasing power of their savings. Their risk is particularly high due to saving for retirement taking place over many decades. However, few pre-retirement investment strategies incorporate explicit inflation-proofing. It is...

Simulations of a model pension scheme are run with stochastic economic and demographic factors, with an aim to investigate the impact of these factors on movements in funding ratio and average contribution rates. These impacts are analyzed by running regressions of movements in funding ratio and...

Australia's MySuper default superannuation funds are compared against New Zealand's range of KiwiSaver funds. Some key points of contrast include: the relative maturity and larger balances of the Australian system; the majority of MySuper providers are not-for-profit, whereas KiwiSaver is...