Question : Could you explain me what this statement means about finance? [Post retirement, however, the optimal equity..]?
Post retirement, however, the optimal equity share increases as households spend down their financial assets, leaving bond-like pension benefits to increasingly dominate household resources.

My english is insufficient to get it. Please explain to me.
ohh ty very much!
I need to write a referee report about: “Optimal Life-Cycle Investing with Flexible Labor Supply:
A Welfare Analysis of Life-Cycle Funds”

The language is very heavy :/
retirement finance

Best answer:

Answer by scobranchi
They’re talking about your investments and how they are allocated. The point they are trying to make is that when you invest money, you want to divide your money depending on how long before you retire. The longer you have to invest before you retire, the more risk you can take. As you get closer to retirement, you want to move that money into less risky investments since you have less time to make-up for any losses in the market. If you divide things up with the best mix of risky and safe investments, you try for the “optimal equity share” of each. In other words, the best risk versus reward.

The second half of the sentence is referring to the fact that once you retire, you want almost all of your money to be in very safe investments like bonds. Apparently whatever fund they are describing moves your money into these safer investments. The “bond-like pension benefits to increasingly dominate household resources” statement is just a fancy way of saying you only have so much money when you retire and we’ll have it in safe investments.