Asset Allocation Strategies to Strengthen U.S. Pension and Retirement Systems

The United States is dealing with numerous issues in retirement funding because of rapid aging, increasing longevity and changes in pension structure. While the older defined benefit (DB) systems are becoming problematic, the defined contribution (DC) plans are putting greater investment and longevity risks to the individuals. This paper aims to address pension funds' performances as well as combating demographic risks and ensuring sustainable retirements by exploring asset allocation strategies. The study, unlike previous researches, focuses on both traditional allocation models such as the 60/40 equity-bond mixture, lifecycle funds, as well as newer methods such as alternative assets, liability-driven investing, and factor-based strategies. These methods are justified by using evidence from U.S. pension funds and from abroad, while the study also looks into policies and regulations that affect pension investment practices. Policy analysis also sheds light on the consequences for risk management, diversification, and intergenerational fairness. By adopting asset allocation strategies that take into account demographic and fiscal challenges, U.S. pension and retirement systems have a better capability to maintain financial stability of retirees while tackling a strain on national resources due to old age dependency.

Authors

Publication Details

Journal
International Journal of Multidisciplinary Research in Science, Engineering and Technology.
Published
2025-09-15
DOI
https://doi.org/10.15680/ijmrset.2025.0809001
Primary Topic
Financial Literacy, Pension, Retirement Analysis
Type
article
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article

Asset Allocation Strategies to Strengthen U.S. Pension and Retirement Systems

Joel Adetokunbo, Oluwasola Dada
International Journal of Multidisciplinary Research in Science, Engineering and Technology.
Financial Literacy, Pension, Retirement Analysis
article

Asset Allocation Strategies to Strengthen U.S. Pension and Retirement Systems

Joel Adetokunbo, Oluwasola Dada
article en

Abstract

The United States is dealing with numerous issues in retirement funding because of rapid aging, increasing longevity and changes in pension structure. While the older defined benefit (DB) systems are becoming problematic, the defined contribution (DC) plans are putting greater investment and longevity risks to the individuals. This paper aims to address pension funds' performances as well as combating demographic risks and ensuring sustainable retirements by exploring asset allocation strategies. The study, unlike previous researches, focuses on both traditional allocation models such as the 60/40 equity-bond mixture, lifecycle funds, as well as newer methods such as alternative assets, liability-driven investing, and factor-based strategies. These methods are justified by using evidence from U.S. pension funds and from abroad, while the study also looks into policies and regulations that affect pension investment practices. Policy analysis also sheds light on the consequences for risk management, diversification, and intergenerational fairness. By adopting asset allocation strategies that take into account demographic and fiscal challenges, U.S. pension and retirement systems have a better capability to maintain financial stability of retirees while tackling a strain on national resources due to old age dependency.

International Journal of Multidisciplinary Research in Science, Engineering and Technology.Vol. 08(09)
Openalex Percentile: Top 62%
Financial Literacy, Pension, Retirement Analysis
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Asset Allocation Strategies to Strengthen U.S. Pension and Retirement Systems — Joel Adetokunbo, Oluwasola Dada · International Journal of Multidisciplinary Research in Science, Engineering and Technology. (2025) | TGRS Research Map | TGRS