The need for retirement products to provide income security for DC plan participants has been identified, both by regulators and the industry, as the primary goal of retirement investing. Join us for a discussion on how to achieve this objective without sacrificing liquidity or flexibility.
During this 1 hour webinar hosted by Pensions & Investments, the world’s leading newspaper for institutional investing, our two leading experts will discuss:
- Addressing the decumulation investing problem: Goal-based withdrawal and investment strategies;
- The outstanding puzzles in retirement investing: The annuity puzzle and the duration puzzle;
- The introduction of the Retirement Bond: The new risk-free asset in retirement income strategies;
- The benefits of the Retirement Bond in decumulation investment strategies.
Lionel Martellini is a Professor of Finance at EDHEC Business School and the Director of EDHEC-Risk Institute. He has also taught at UC Berkeley, USC and Princeton University. His work has been published in leading academic and practitioner journals and he has co-authored reference textbooks on fixed-income securities, goal-based investing and retirement investing. Professor Martellini is a member of the editorial board of Journal of Portfolio Management and Journal of Retirement, and has served as a consultant for large institutional investors and asset management firms in Europe and in the US. He holds Master’s degrees in economics, mathematics and statistics, as well as a PhD in finance from the Haas School of Business, University of California at Berkeley. Outside of his activities in finance, he more recently completed a PhD in relativistic astrophysics and has become a member of the LIGO/Virgo international collaboration for the observation of gravitational waves.
Shahyar Safaee is a Research Director and Head of Business Development at EDHEC-Risk Institute. Before joining EDHEC-Risk Institute in 2020, Shahyar was a capital markets professional with a 20-year track record in both sell-side and buy-side roles, notably spending 18 years in J.P. Morgan’s Global Equities division in London, Paris, and New York, serving institutional clients in various capacities including quantitative research, trading, fund management, asset-based financing, and structuring. He holds master's degrees in engineering (Ecole des Mines de Saint-Etienne) and financial mathematics (Université Claude Bernard in Lyon).
Register directly to the webinar on Pensions&Investments website.
What you can expect to learn about during the session:
- The complex problem of efficiently securing retirement income post retirement, a.k.a. the decumulation problem
- Desirable features one should expect to find in efficient decumulation strategies
- Retirement income risk and the risk-free asset DC plans should have in their toolkit
- How this risk-free asset enhances retirement outcomes for beneficiaries?
You can read their edito "THE DECUMULATION PROBLEM?", published in the July edition of EDHEC-Risk Institute newsletter. In a nutshell, the decumulation problem is defined as the challenge involved in efficiently turning wealth into income, which stands in direct contrast with the accumulation problem, which is instead about efficiently turning income into wealth. In individual money management, the most typical decumulation problem starts when an individual retires, ceases to receive labor income, and starts to draw down on accumulated assets to generate the level of replacement income needed to sustain the target consumption level in retirement. The problem actually extends beyond individual money management to encompass all situations where an institutional investor is tasked with the complex challenge of managing assets while facing pre-committed outflows, as would be the case for example with a mature defined benefit pension fund or an endowment. As Bill Sharpe eloquently put it, the decumulation problem is indeed a hard and nasty problem, but its importance is so overwhelming that this cannot be used as an excuse for inertia.