Distinguished Professor Emeritus Peter Forsyth, Professor Ken Vetzal from the School of Accounting and Finance, and Graham Westmacott, portfolio manager at PWL Capital, have received the 2021 Brockett–Shapiro Actuarial Journal Award from ARIA — the American Risk and Insurance Association.
The prestigious annual award, which is conferred for the most valuable contribution in risk management and insurance, recognizes “Management of Portfolio Depletion Risk through Optimal Life Cycle Asset Allocation,” a paper they published in the North American Actuarial Journal in 2019.
With increasing longevity coupled with uncertainties in market returns, government benefits, and the rise in the cost of living in the years to come, many retirees are understandably concerned they may outlive their money. Known as portfolio depletion risk — the chance of running out of your retirement savings — this is particularly a concern for retirees with defined contribution pension plans because such pension holders typically use their accumulated savings to fund spending during their retirement.