The financial survival probability of living annuitants

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dc.contributor.authorPalmer, Duncanen_ZA
dc.contributor.authorKrige, Nielen_ZA
dc.date.accessioned2014-07-07T12:32:13Z
dc.date.available2014-07-07T12:32:13Z
dc.date.issued2013
dc.descriptionCITATION: Palmer, D. & Krige, N. 2013. The financial survival probability of living annuitants. Journal of Economic and Financial Sciences, 6(1):a282, doi:10.4102/jef.v6i1.282.
dc.descriptionThe original publication is available at https://jefjournal.org.za
dc.description.abstractThis 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.
dc.description.urihttps://jefjournal.org.za/index.php/jef/article/view/282
dc.description.versionPublisher's version
dc.format.extent12 pages
dc.identifier.citationPalmer, D. & Krige, N. 2013. The financial survival probability of living annuitants. Journal of Economic and Financial Sciences, 6(1):a282, doi:10.4102/jef.v6i1.282.
dc.identifier.issn2312-2803 (online)
dc.identifier.issn1995-7076 (print)
dc.identifier.otherdoi:10.4102/jef.v6i1.282
dc.identifier.urihttp://hdl.handle.net/10019.1/94543
dc.language.isoen
dc.publisherAOSIS
dc.rights.holderAuthors retain copyright
dc.subjectPensions -- South Africaen_ZA
dc.subjectAnnuitiesen_ZA
dc.titleThe financial survival probability of living annuitantsen_ZA
dc.typeArticle
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