Retirement Portfolio Resilience Framework
A portfolio-construction framework for helping investors remain financially and emotionally invested throughout their retirement journey, regardless of the path markets take.
Gyrostat specialises in Retirement Portfolio Resilience.
Retirement Portfolio Resilience is the discipline of helping investors remain financially and emotionally invested throughout their retirement journey, regardless of the path markets take. It focuses on the retirement-specific challenges of sequencing risk, behavioural survivability and resilience across market environments.
For many years, portfolio construction has been organised around growth assets and defensive assets. More recently, retirement income solutions have emerged to help address income sufficiency and longevity protection.
Yet retirement introduces another challenge.
A retiree may have solved the income challenge while remaining exposed to sequencing risk. Equally, a retiree may have a resilient portfolio structure while still requiring greater income certainty.
This suggests retirement portfolio construction may increasingly involve two complementary portfolio functions:
- Retirement Income — addressing income sufficiency, longevity protection and spending confidence.
- Retirement Portfolio Resilience — addressing sequencing risk, behavioural survivability and resilience across market environments.
The Retirement Portfolio Resilience Framework provides advisers with a practical way to assess retirement-specific risks, discuss portfolio resilience and explore how different portfolio functions may work together to support more sustainable retirement outcomes.
