Under our current defined contribution system, the retiree bears all the risks - longevity risk, inflation risk and investment/sequencing risk. Empirical evidence shows that retirees have a bias against drawing down on capital, and this preservation of capital is likely explained by the need to insure against these risks. A high equity income strategy tailored for retirees is a core solution for providing better retirement outcomes, maximising income while leaving capital intact.

Presentation  (36 mins)  |  Slides