Adequacy and Sustainability of the Australian Retirement System using Modelling and Optimisation

The global shift from defined-benefit (DB) to defined-contribution (DC) pensions schemes has placed significant risks and responsibilities from the pension provider onto the individual. Households are now expected to properly manage their own retirement savings and investment portfolios, as well as face further complex and unfamiliar decisions when choosing how to spend their DC savings and secure retirement income. This thesis provides a comprehensive study of Australia’s maturing DC-type retirement income system, using modelling and optimisation techniques to evaluate the adequacy and sustainability of a system that is under growing pressure from increasing longevity and deteriorating dependency ratios.