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Centre for Policy on Ageing | |
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| Modelling income drawdown strategies | | Author(s) | Edd Denbee |
| Corporate Author | Investment Management Association (IMA) |
| Publisher | Investment Management Association, London, March 2008 |
| Pages | 32 pp (Research paper) |
| Source | Investment Management Association, 65 Kingsway, London WC2B 6TD. www.investmentuk.org |
| Keywords | Income [older people] ; Investments [elderly] ; Retirement policy ; Mathematical models. |
| Annotation | The Investment Management Association (IMA) builds on existing work on income drawdown approaches, by analysing a number of strategies. There is a particular focus on variable percentage strategies operating according to a predetermined withdrawal role. The analysis firstly examines income streams. In addition to modelling the median outcome for each strategy, the 10th and 60th percentile outcomes are presented, to gauge the state of uncertainty inherent in income drawdown. The pay-out phase and the bequest potential are quantified in Money's Worth terms, to allow for comparison with annuity products and between the drawdown strategies modelled. Sensitivity analysis of the impact of charges and of different asset allocation are also included. The paper does not reach firm conclusions regarding the desirability of one drawdown strategy over another, nor does it suggest that drawdown is inherently superior to annuity products. Rather, it attempts to present a range of possibilities on which to base a wider debate on the future of retirement income. (RH). |
| Accession Number | CPA-080327003 B |
| Classmark | JF: JDK: G5: 3LM |
Data © Centre for Policy on Ageing |
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| ...from the Ageinfo database published by Centre for Policy on Ageing. |
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