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22 August 2025

Home / White Papers 2015

The role of asset allocation in navigating the retirement risk zone

  •   2 July 2015
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Australia’s superannuation industry is well into its third decade of development. By 2040 it is expected that our super system will hold $9 trillion in assets. With an ageing population the issue of sustainable retirement income is critical to Australia’s wellbeing. The Financial System Inquiry has called for bipartisan support to enshrine the objectives of the superannuation system in legislation:

“To provide income in retirement to substitute or supplement the Age Pension.”

What is the role of asset allocation in preparing for retirement?

A simple, yet effective strategy that considers portfolio targets, the financial risks associated with approaching retirement, and market tracking techniques can dramatically improve sustainability of superannuation savings. Such a strategy is capable of substantially outperforming atypical — and often static — investment strategies.

This approach proposed by Michael Drew, Adam Walk and Jason West considers one’s entire lifetime, the portfolio’s adequacy and market performance. It is both simple and dynamic enough to deal with the realities of retirement income.

The full White Paper, The Role of Asset Allocation in Navigating the Retirement Risk Zone, is available here.

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