Retirement planning

How a retiree’s health affects spending and asset allocation

October 20, 2022

A line graph shows the optimal asset allocations or glide paths into and during retirement for investors in the baseline scenario and in different health states (poor, moderate, and good). All glide paths gradually decrease their equity allocation after age 60. The optimal glide paths for the baseline, moderate-health, and good-health states are the same, starting at an equity allocation of 59% and ending at a 30% allocation. The optimal glide path for the poor health state has a higher ending point for equity allocation, at 42%.


Nathan C. Zahm, CFA, FSA
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