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: 100% equities with 0% fixed interest securities, 75% equities with 25% fixed interest securities 50% equities with 50% fixed interest securities, 25% equities with 75% fixed interest securities and finally 0% equities with 100% fixed interest securities.
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