To supplement retirement benefits received from public and private pension systems, individuals need to make voluntary contributions and decide how to efficiently invest these contributions. In this article, the authors analyze the problem of how to secure minimum levels of replacement income in retirement while offering attractive probabilities of reaching higher levels. Such strategies can offer an interesting alternative to target date funds, which have no focus on the generation of replacement income, or annuities, which can be used to secure replacement income but at the cost of substantial rigidity.
All Science Journal Classification (ASJC) codes
- Organizational Behavior and Human Resource Management
- Life-span and Life-course Studies
- Geriatrics and Gerontology