Retirement Portfolio Resilience Framework
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.
For decades, portfolio construction has largely focused on 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: sequencing risk, behavioural pressures and the ability to maintain confidence through periods of market uncertainty.
The framework below illustrates where Retirement Portfolio Resilience may fit within broader retirement portfolio construction. Rather than competing with retirement income solutions, Retirement Portfolio Resilience addresses a different retirement challenge. Retirement Income seeks to address income and longevity risk. Retirement Portfolio Resilience seeks to address sequencing risk, behavioural survivability and resilience across market environments.
The framework is organised around five key considerations:
SBRCR
Sequencing – Behaviour – Risk – Construction – Resilience
- Sequencing – understanding the impact of sequencing risk on retirement outcomes.
- Behaviour – helping investors remain invested during periods of uncertainty.
- Risk – focusing on the pricing of risk and embedded protection rather than prediction.
- Construction – viewing retirement through a portfolio-construction lens rather than a product lens.
- Resilience – building portfolios designed to operate across a wide range of market environments.
These five pillars now provide the organising framework for Gyrostat's growing library of retirement research, educational resources and adviser insights developed over approximately fifteen years of portfolio-construction experience.
