Research Innovation Needed

Existing models for household wealth accumulation provide prescriptions for savings rates and investment allocations as a function of individual risk aversion and financial goals. The models are stochastic to incorporate both uncertain market returns (quantitative finance) and income/consumption shocks (actuarial analysis). Key drivers include the links between income-consumption, savings rate, risk attitudes, and the response to unforeseen shocks. The partnerships we have built allow us to explore the empirical connections between these attributes, to cluster individual Canadians, and to provide better decision-making mechanisms.