Finance Department

 

Date of this Version

2000

Document Type

Article

Citation

Journal of Actuarial Practice 8 (2000), pp. 147-176

Comments

Copyright 2000 Absalom Press

Abstract

A measure of level of post-retirement standard of living is the replacement ratio, i.e., percentage of final salary received as annual retirement income derived from savings. The replacement ratio depends on many factors including salary, salary increases, investment returns, and post-retirement mortality. Elementary life contingencies techniques are used to develop a replacement ratio formula and analyze its sensitivity to these factors.

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