Wharton Pension Research Council Working Papers

Document Type

Working Paper

Date of this Version



This paper proposes a new approach to investing for retirement that takes advantage of recent market innovations and advances in finance theory to improve the risk/reward opportunities available to individual investors before and after retirement. The approach introduces three new elements: 1. It uses inflation-protected bonds to hedge a minimum standard of living after retirement; 2. It takes account of a person’s willingness to postpone retirement, and 3. It uses option “ladders” to lever growth in retirement income.

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Copyright/Permission Statement

©2001 Pension Research Council of the Wharton School of the University of Pennsylvania. All Rights Reserved.

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Economics Commons



Date Posted: 13 September 2019