Equity income is key to providing better retirement outcomes
Don Hamson | Plato Investment Management | 13 October 2021 | 0.50 CE
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
Podcast (36 mins)