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Breaking down retirement risks

The transition to retirement fundamentally changes the nature of risk. A worthwhile approach is to distinguish risks based on whether they jeopardize the asset side of the household balance sheet, or the liability side (future spending needs) of the balance sheet. Another division could be whether the risks impact society at a macroeconomic level, or whether they are individual specific. This allows for a consideration of four categories of risk as highlighted in the following figure...Read More

 

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