An Analysis Of The Effect Of Longevity And The Economy On Annuity Costs
At retirement, the accumulated funds from investments are used to purchase annuities which invariably determine the quantum of pensions for a retiree. The annuity cost depends solely on the life table with its own life expectancies and the discounting factor which depends upon the state of the economy.
In an economic boom the discounting factor is high while in a
The Effect Of Investment Mix On The New Nigerian Pensions
Retirees in a defined contribution scheme have their yearly investments accumulated until retirement at which time pensions are purchased at the prevailing annuity rates. The state of the economy has a strong bearing in the investment returns. The investments are of various outlets mainly equities and fixed interest securities which have different investment returns.
The paper considers the following investments mix: