Comparing annuity options at retirement

Date
2013-03
Authors
De Villiers-Strijdom, Jeannie
Journal Title
Journal ISSN
Volume Title
Publisher
Stellenbosch : Stellenbosch University
Abstract
In this thesis, based on historical data, a comparative study is conducted of various annuity strategies for South African males who retired during the 30 years from 1960 to 1989. To this end, the present values of the monthly cash ows provided by di erent annuity strategies are calculated and compared in order to ascertain which strategy would have provided the largest nancial bene ts. In contrast to previously held general beliefs, the calculations demonstrate that pure living annuity strategies are superior to composite annuity strategies, which in turn outperform switching annuity strategies, whereas pure life annuities yield the lowest return.
Description
Thesis (MComm)--Stellenbosch University, 2013.
Keywords
Living annuities, Life annuities, Retirement income, Dissertations -- Business management, Theses -- Business management
Citation