The Australian retirement lottery: A system failure
MetadataShow full item record
© 2015, © The Author(s) 2015. The purpose of this paper is to assess the adequacy of the Australian retirement system to fund the needs of retirees by taking into account both the Knightian risk arising from market volatility under normal market conditions as well as the Knightian uncertainty arising from rare but severe market shocks. We have also taken into account changes in employment during the pre-retirement phase. Given the low frequency, high impact of market shocks, the result is that cohorts of Australian retirees will enjoy very different levels of retirement income and there will be consequent shocks to the demand for the Age Pension supplement and potentially, significant variations in the standard of living in retirement for Australian employees. Whilst the Australian retirement system has been put forward as a model for other economies to follow, we find there is a fundamental flaw in the system.
Showing items related by title, author, creator and subject.
Ganegoda, A.; Evans, John (2017)© 2015, © The Author(s) 2015. The purpose of this paper is to assess the adequacy of the Australian retirement system to fund the needs of retirees by taking into account both the Knightian risk arising from market ...
Cigdem, M.; Wood, Gavin; Ong, Rachel (2015)This Positioning Paper is the first output of a project that aims to forecast future housing subsidies that will accompany projected demographic changes and the challenges these trends may pose for the fiscal sustainability ...
Chikolwa, Bwembya C (2008)According to the Reserve Bank of Australia (2006) the increased supply of Commercial Mortgage-Backed Securities (CMBS), with a range of subordination, has broadened the investor base in real estate debt markets and reduced ...