Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

The role of asset allocation in navigating the retirement risk zone

  •   2 July 2015
  •      
  •   

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.

  •   2 July 2015
  •      
  •   
banner

Sponsors

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.