Oz investor
Full time employment: Posting here.
Yes, they assumed that retirees would liquidate their portfolios directly upon retiring. Quite weird assumption, actually, and it didn't happen that way. You would expect retirees to draw on their investments over a long period of time.
But I remember dire warnings of massive selling ahead.
some fund managers worked on that assumption ( and maybe still do ) down here there can be a BIG focus on ( clients ) assets under management and 'total returns ' , which last year MOSTLY translated to capital gains ( or losses ) as dividend payouts were often slashed savagely ( or withheld completely )
i am HOPING to never draw-down on the actual portfolio but to use the dividend/interest revenue to fund my later years , so far that dividend income is in excess of my needs , so am reinvesting it where i sensibly can , but i can't expect that to happen if inflation explodes
BTW fund managers get fees for money coming in AND OUT ( but i never hear much about static accounts . aka no new money coming in .
so those 'warnings' may have been fund manager projections , assuming the clients would cash out and spend recklessly that nest egg at the end of their working life