Creating an efficient annuity basket : application of international portfolio theory to life annuities.

This research paper aims to introduce the use of Life Annuities as a retirement tool for the general population. Declining birth rates and lower mortality have resulted in an aging population. Planning for retirement becomes increasingly important as the likelihood of outliving one’s assets increase...

全面介紹

Saved in:
書目詳細資料
Main Authors: Chiu, Ya Ting., Lim, Chong Han., Liu, Guanting.
其他作者: Dufey, Gunter
格式: Final Year Project
出版: 2008
主題:
在線閱讀:http://hdl.handle.net/10356/11510
標簽: 添加標簽
沒有標簽, 成為第一個標記此記錄!
機構: Nanyang Technological University
實物特徵
總結:This research paper aims to introduce the use of Life Annuities as a retirement tool for the general population. Declining birth rates and lower mortality have resulted in an aging population. Planning for retirement becomes increasingly important as the likelihood of outliving one’s assets increases due to higher life expectancy brought about by medical advancement. The benefits and features of Life Annuities are introduced together with the different forms of risks involved, from both perspectives of the insurer and annuitant. The presence of bequest motive also affects the demand for annuities, particularly in Asian societies which are closer to an agricultural background. The recent developments in the new government-run compulsory annuity plan, CPF Life, as well as annuity plans from several overseas annuity markets are discussed. Hypothetical scenarios were constructed to compare the internal rate of return offered by the various annuity plans treating the accumulation and decumulation phase of the annuity as cash inflows and outflows of a project. The features and returns were tabulated to provide a general view of the annuity plans in deciding the optimal composition.