Research and publications

Mass Customisation versus Mass Production in Retirement Investment Management: Addressing a "Tough Engineering Problem"

Existing financial products marketed as “retirement investment solutions” do not meet the needs of future retirees, which involve securing their essential goals expressed in terms of minimum levels of replacement income (focus on safety), while generating a relatively high probability of achieving their aspirational goals expressed in terms of target levels of replacement income (focus on performance). Meaningful solutions should therefore combine safety and performance to meet this dual objective.

Author(s) :

Lionel Martellini, Vincent Milhau

Summary :

Existing financial products marketed as “retirement investment solutions” do not meet the needs of future retirees, which involve securing their essential goals expressed in terms of minimum levels of replacement income (focus on safety), while generating a relatively high probability of achieving their aspirational goals expressed in terms of target levels of replacement income (focus on performance). Meaningful solutions should therefore combine safety and performance to meet this dual objective.

Type : EDHEC Publication
Date : 30/05/2017
Keywords :

Retirement Investment Management