The sequence-of-returns effect: Exploring the impact of volatility on retirement assets
The benefits of mitigating portfolio volatility and drawdown are magnified during portfolio decumulation in retirement.
As too many would-be retirees now know, unstable global markets can destroy a lifetime of responsible saving. Milliman could have helped them. First introduced in 1998, Milliman's straightforward, transparent risk management methodology has withstood even the most severe market declines, including the 2000 tech sell-off and the global financial crisis.
Never before have individual investors faced such significant risk. The decline in traditional defined benefit pension plans over the last past few decades has led to increased investor vulnerability. This is especially true for those nearing retirement, where shifting market conditions can dramatically affect the income generating value of a lifetime of contributions. Milliman has developed proven solutions that can help.
The articles featured in this section demonstrate Milliman's extensive experience with the issues facing the retirement savings industry as well as financial risk management techniques and our time-tested methodology for protecting client portfolios.
As one of the world's largest independent consulting firms, Milliman has been a thought leader in the issues facing retirement savings industry for over 50 years. Milliman's clients include insurers, government agencies, pension funds and financial advice networks. As an integrated global organisation, Milliman is able to provide clients with the latest thinking from around the world.
Milliman's Financial Risk Management practice is a leading provider of services to financial institutions. Our unique combination of consulting, outsourcing and investment advisory services gives Milliman clients access to innovative thinking together with the ability to implement their chosen strategies in a transparent and cost-effective manner without sacrificing control. Our work with the insurance industry, where Milliman is the leading provider of services to guaranteed lifetime income providers gives our clients seeking guarantees or longevity solutions the ability to develop sustainable long-term and low-cost structures designed to manage counterparty risk.
Our Capital Markets Group provides trading and execution services on a global 24-hour basis out of Chicago, London, and Sydney. The Financial Technology practice is responsible for our industry-leading platform, which is used to manage financial risk on over 6 million investor accounts every day. Our Actuarial Team includes the industry's leading experts in the design, analysis, and ongoing management of hedging and risk management strategies, as well as product development in the fields of insurance, investment and retirement. And our Quantitative Development Team is responsible for ensuring our approach incorporates the latest developments and innovation in financial markets, as well as for the integrity of our financial models.