Applying Goal-Based Investing Principles to the Retirement Problem - Executive Summary

In most developed countries, pension systems are being threatened by rising demographic imbalances as well as lower growth in productivity. In this paper, we propose to apply the principles of goal-based investing to the design of a new generation of retirement goal-based investing strategies, which can be regarded as risk-controlled target date funds that strike a balance between safety and performance with respect to the objective of generating replacement income.