Retirement product to address longevity and sequencing risk
Milliman has addressed sequencing risk and longevity in their new retirement solution offering, Retirement Enhancement TrustTM.
The global actuarial consulting firm said the offering was to help provide a secure retirement income for superannuation fund members.
Milliman's principal and consulting actuary in New York, Stuart Silverman, said many retirement solutions only addressed either sequencing risk or longevity, but not both.
"The Retirement Enhancement Trust recognises the interaction between returns and longevity and leverages institutional risk management and pooling approaches to provide long-term, sustainable income for retirees," Silverman said.
Silverman's counterpart in Sydney, Wade Matterson, said "volatility managed funds with principal protection are a powerful tool to manage sequence risk".
"By combining this with the longevity pooling techniques in the Retirement Enhancement Trust, a retiree's accumulated savings provides for a substantially improved standard of living in retirement," he said.
Recommended for you
A new funds distribution business has launched in Australia, seeking to bring institutional offerings to the wholesale market and led by co-founder of Jamieson Coote Bonds.
Higher interest rates could be on the cards for 2026 after monthly CPI inflation for October showed an increase of 3.8 per cent.
Global actively managed ETF assets hit a record high in October, according to independent research and consultancy firm ETFGI, breaking the record set the previous month.
Federation Asset Management has appointed an investment director and head of responsible investments to support ESG integration strategy across the firm.
