The Australian retirement lottery: A system failure
© 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 arisin...
| Main Authors: | , |
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| Format: | Journal Article |
| Published: |
Sage Publications
2017
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| Online Access: | http://hdl.handle.net/20.500.11937/62574 |
| _version_ | 1848760877224820736 |
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| author | Ganegoda, A. Evans, John |
| author_facet | Ganegoda, A. Evans, John |
| author_sort | Ganegoda, A. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | © 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. |
| first_indexed | 2025-11-14T10:22:45Z |
| format | Journal Article |
| id | curtin-20.500.11937-62574 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T10:22:45Z |
| publishDate | 2017 |
| publisher | Sage Publications |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-625742018-03-29T09:09:13Z The Australian retirement lottery: A system failure Ganegoda, A. Evans, John © 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. 2017 Journal Article http://hdl.handle.net/20.500.11937/62574 10.1177/0312896214554267 Sage Publications restricted |
| spellingShingle | Ganegoda, A. Evans, John The Australian retirement lottery: A system failure |
| title | The Australian retirement lottery: A system failure |
| title_full | The Australian retirement lottery: A system failure |
| title_fullStr | The Australian retirement lottery: A system failure |
| title_full_unstemmed | The Australian retirement lottery: A system failure |
| title_short | The Australian retirement lottery: A system failure |
| title_sort | australian retirement lottery: a system failure |
| url | http://hdl.handle.net/20.500.11937/62574 |