Post-retirement labor and non-retirement risky asset allocation

Gary Curnutt, Qi Sun, Michael Guillemette

Research output: Contribution to journalArticlepeer-review

1 Scopus citations


This article studies how post-retirement labor is related to non-retirement risky asset allocation. By using panel data from the 1992-2018 Health and Retirement Study, this article empirically finds a negative relationship over time between non-retirement risky asset allocation and post-retirement labor. Furthermore, this article explores the forced retirement risk (a type of labor income risk) for the post-retirement labor group. Descriptive findings indicate that members of the post-retirement labor group have a greater risk of being forced to retire, and the trend of forced retirement risk is inversely related to equity returns. This latter finding suggests a potential correlation between forced retirement risk and stock returns. If an individual's human capital is at greater risk or becomes more stock-like (i.e., labor income risk correlates with stock returns), then investing in fewer risky assets would be justifiable. When both of these findings are accounted for, they corroborate the findings of this article: Post-retirement labor is negatively associated with risky asset allocation.

Original languageEnglish
Pages (from-to)112-123
Number of pages12
JournalJournal of Retirement
Issue number1
StatePublished - Jun 2021


  • Legal/regulatory/public policy
  • Performance measurement
  • Retirement
  • Risk management


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