App 7m: Pension fund’s view — Required wealth for constant pension payments
Yearly spending
Amount / year
12,000
Rates
Interest rate r
3%
Inflation rate i
1%
Conversion rate β (nominal)
0.05
Mortality (Gompertz–Makeham)
Pension starting age x
65
Accidental death λ
0
Modal age m
82.3
Dispersion b
11.4
Compute
■
Required wealth — nominal yearly spending
■
Required wealth — real yearly spending
■
Required wealth — nominal periodic using β
Expected remaining lifetime (years):
16.3
Fair conversion rate (real):
7.45%
Waiting…