The financial survival probability of living annuitants
Journal of Economic and Financial Sciences
| Field | Value | |
| Title | The financial survival probability of living annuitants | |
| Creator | Palmer, Duncan Krige, Niel | |
| Description | This study addresses the question of how long a given amount of capital will be able to fund a living annuitant if the following five parameters are known: expected retirement duration (i.e. years between date of retirement and date of death), return on investment, inflation, annual withdrawal amount and initial capital amount available. A model (the Pension Model) that graphically depicts the relationship between these parameters was developed. This model facilitates retirement planning by showing how retirement duration and withdrawal rates change the financial “Survival Probability” (SP), which is the probability of having enough capital to maintain a desired withdrawal rate for the expected retirement duration. The underlying model is based on long-term historical investment yields of equities, bonds and cash in South Africa using Monte Carlo simulation with Cholesky factorisation. | |
| Publisher | AOSIS | |
| Date | 2013-04-30 | |
| Identifier | 10.4102/jef.v6i1.282 | |
| Source | Journal of Economic and Financial Sciences; Vol 6, No 1 (2013); 167-178 2312-2803 1995-7076 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://jefjournal.org.za/index.php/jef/article/view/282/362
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