Choices and Constraints Over retirement Income Streams: Comparing Rules and Regulations

Bateman, H; Thorp, SJ

Choices and Constraints Over retirement Income Streams: Comparing Rules and Regulations

Bateman, H Thorp, SJ

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Publisher:: Blackwell Publishing Asia
Publication Type:: Journal Article
Citation:: The Economic Record, 2008, 1, 84 (Special), pp. 17 - 31
Issue Date:: 2008-01

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Field	Value	Language
dc.contributor.author	Bateman, H	en_US
dc.contributor.author	Thorp, SJ	en_US
dc.date.issued	2008-01	en_US
dc.identifier.citation	The Economic Record, 2008, 1, 84 (Special), pp. 17 - 31	en_US
dc.identifier.issn	0013-0249	en_US
dc.identifier.uri	http://hdl.handle.net/10453/9933
dc.description.abstract	The new Simplified Superannuation regulations for Australian superannuation provide tax concessions to retirement income streams which comply with legislated minimum drawdown rules. We evaluate these new drawdown rules against four alternatives, including three formula-based `rules of thumb used by financial planners. We find that the new regulations are a substantial improvement on the previous rules for allocated pensions and, when compared with the formula-based rules, are a good compromise in terms of simplicity, adequacy and risk. We also find that welfare is lower for most individuals who follow the Simplified Superannuation rules compared with welfare under an optimal path or a simple fixed percentage drawdown rule, but that outcomes could be improved through a further simplification of the new rules.	en_US
dc.publisher	Blackwell Publishing Asia	en_US
dc.relation.ispartof	The Economic Record	en_US
dc.relation.isbasedon	10.1111/j.1475-4932.2008.00480.x	en_US
dc.subject.classification	Economics	en_US
dc.title	Choices and Constraints Over retirement Income Streams: Comparing Rules and Regulations	en_US
dc.type	Journal Article
utslib.citation.volume	Special	en_US
utslib.citation.volume	84	en_US
utslib.for	140207 Financial Economics	en_US
utslib.for	14 Economics	en_US
utslib.for	15 Commerce, Management, Tourism and Services	en_US
utslib.citation.edition	1	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Strength - CENSOC - Study of Choice
utslib.copyright.status	open_access
pubs.consider-herdc	true	en_US
pubs.edition	1	en_US
pubs.issue	Special	en_US
pubs.volume	84	en_US

Abstract:

The new Simplified Superannuation regulations for Australian superannuation provide tax concessions to retirement income streams which comply with legislated minimum drawdown rules. We evaluate these new drawdown rules against four alternatives, including three formula-based `rules of thumb used by financial planners. We find that the new regulations are a substantial improvement on the previous rules for allocated pensions and, when compared with the formula-based rules, are a good compromise in terms of simplicity, adequacy and risk. We also find that welfare is lower for most individuals who follow the Simplified Superannuation rules compared with welfare under an optimal path or a simple fixed percentage drawdown rule, but that outcomes could be improved through a further simplification of the new rules.

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http://hdl.handle.net/10453/9933