Asset strongAllocationstrong and Age Effects in Superannuation Investment.pdfVIP

Edith Cowan University Research Online ECU Publications Pr . 2011 2006 A sset Allocation and Age Effects in Superannuation Investment Choice Paul Gerrans Edith Cowan University Marilyn Clark-Murphy Edith Cowan University Craig Speelman Edith Cowan University This article was originally publish d as: G rrans, P. A., Clark-Murphy, M. C., Sp lman, C. P. (2006). Ass t allocation and age eff cts in sup rannuation inv stm nt choic . Proc dings of 35th Australian Conf r nce of Economists. (pp. 1-33). P rth. Curtin Busin ss School. Original article availabl h r This Conf r nce Proc ding is post d at R s arch Onlin . http://ro. cu. du.au/ cuworks/1763 Asset Allocation and Age Effects in Superannuation Investment Choice by Paul Gerrans*1 Marilyn Clark-Murphy* Craig Speelman** Abstract This paper examines the asset allocation decisions of the members of three Australian superannuation funds which have combined assets of $23.7 billion and 1.3 million members. The Superannuation Guarantee has made Australian employees compulsory investors. Conventional wisdom seems to suggest that individuals allocate less to risky assets as they age whereas investments theory has provided conflicting advice. This paper provides a preliminary examination of how the investment strategy and asset allocation choices of members make may change with age. Keywords: Retirement savings, Superannuation, Asset allocation JEL Codes: D91, G11, D14 *School of Accounting, Finance and Economics, Edith Cowan University **School of Psychology, Edith Cowan University 1 Corresponding author p.gerrans@.au The authors gratefully acknowledge the support of the GESB, UniSuper, STA and HESTA in the conduct of