Asset Allocation and Age Effects in Superannuation Investment Choice
Curtin Business School
Faculty of Business and Law
School of Accounting, Finance and Economics
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.