Retirement Portfolio Resilience Perspective
Category: Government Policy & Industry Research
This Firstlinks article examines the Australian Government's Retirement Income Review and discusses practical reforms that could strengthen retirement portfolio construction and improve retirement outcomes.
The article considers how retirement portfolios can better address sequencing risk, improve the communication of investment risk and encourage the development of complementary portfolio construction approaches that support more resilient retirement outcomes. Viewed through today's Retirement Portfolio Resilience Framework, it reflects Gyrostat's long-standing commitment to contributing to the broader evolution of Australia's retirement system through disciplined portfolio construction and improved retirement risk management.
This article forms part of Gyrostat's broader body of government policy engagement, industry research and educational resources that contributed to the development of the Retirement Portfolio Resilience Framework.
The recently announced Retirement Income Review terms of reference detail the three pillars on which Australia’s retirement income system is based – age pensions, compulsory superannuation and voluntary savings. This paper focuses on the second pillar, superannuation.
There are three key outcomes that can be met by the Retirement Income Review:
- Further develop the risk adjusted returns disclosure arrangements criteria to assist retirees in understanding the risks inherent in retirement income products.
- Encourage the development of a variety of risk management approaches with the objective of improving risk adjusted returns for retirees.
- Develop guidelines for ‘alternative – conservative’ and ‘alternative – growth’ asset classifications, based upon the risk level rating and in particular the product’s ability to address sequencing risk.
FirstLinks article:
https://bit.ly/34hpq1w
