Written for the Brandes Institute by Dr Geoff Warren, Associate Professor at Australian National University. Magellan has been granted permission by the author to republish this report.
Focusing on asset exposure in retirement, this report assesses the benefits of using growth assets in retirement to convert retirement balances into income that will last over the remaining lifetime. The conclusion? Retirees are more likely to be better off with higher equity exposure, and less allocation to fixed income, but potential risks should be considered too.