Description: An article presenting updated results as of 12/2021 by using analgorithm that formed part of a paper presented at the AFIR-ERMColloquium which took place in Panama, in 2017. This article starts by proving that the conditions that have to be met in order for the formula to apply that were present in 12/2015 still hold.

Description: Many retirement actuaries have experience developing, implementing, and monitoring Liability Driven Investing (LDI) strategies for plan sponsors. These strategies typically involve modifying a plan’s investment strategy to remove a significant portion of the investment and interest rate risk now or at some point in the future when specific triggers are met. The tactics often involve the use of fixed income assets to cash flow and/or duration match the liabilities. In the spirit of helping actuaries expand their roles in an evolving defined contribution world, this article explores the application of LDI and derisking strategies within defined contribution and individual retirement accounts. The economic theory behind this approach is called the lifecycle hypothesis, or lifecycle finance. The benefits of the lifecycle finance method are that it provides a safe approach to save for retirement and a secure source of floor income during retirement. Similar to pension plans, each individual has his or her own idiosyncratic needs, wants, and risks that should be considered. Actuaries are uniquely situated to help defined contribution plan sponsors, individuals, and even themselves implement the lifecycle finance approach by developing and distributing tools and methods that focus on income (rather than wealth), LDI strategies, and personalization.

Description: This paper suggests that individual decisions to retire are based on personal resource allocations, institutional influences, and social standards. The paper then attempts to create a decision-making framework in which to accommodate this range of influences. From Retirement Needs Framework, M-RS00-1.

Description: Symposium overview. From Retirement Needs Framework, M-RS00-1.

Description: In this paper we compute the conditional and unconditional probability of ruin for an individual who wishes to consume a fixed periodic amount from an initial endowment invested in a portfolio earning a stochastic rate of return. From Retirement Needs Framework, M-RS00-1.

Description: Symposium session on Emerging Definitions of Retirement.

Description: This program allows the user to explore in great detail a technical problem that has occupied a number of investors, financial writers and especially retirees, during the last few years, as the baby boomers start to approach retirement. Namely, what is the probability that one will run out of money before running out of life, if his or her current standard of living is maintained? This is a zip file which includes the Retirement Probability Analyzer software, an instruction manual and a PowerPoint presentation explaining the program.

Description: This presentation concentrates on the regression analysis of three waves of data 2001, 2003, and 2005 from the Consumption and Activities Mail Survey CAMS. The CAMS collects consumption data from a random subset of respondents in the Health and Retirement Study HRS . The HRS is a nationally representative sample of persons who were aged 51 to 61 in 1992 and their spouses or partners. The survey is longitudinal in nature, with the baseline interview conducted in 1992 and subsequent waves occurring every two years. [Comments on long-term care needs and reverse mortgages will be offered at oral presentation without quantitative data.] From 'Needs and Spending in Retirement: Unraveling the Mystery' Symposium, Washington, D.C. October 2007.

Description: Experts' discussion of symposium papers. From Retirement Needs Framework, M-RS00-1.

Description: This program allows the user to explore in great detail a technical problem that has occupied a number of investors, financial writers and especially retirees, during the last few years, as the baby boomers start to approach retirement. Namely, what is the probability that one will run out of money before running out of life, if his or her current standard of living is maintained? This is a zip file which includes the Retirement Probability Analyzer software, an instruction manual and a PowerPoint presentation explaining the program.