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http://dx.doi.org/10.7465/jkdi.2014.25.6.1315

The estimation of lifetime income replacement rates  

Shin, Seunghee (National Pension Research Institute)
Son, Hyunsub (Department of Actuarial Science, Sungkyunkwan University)
Lee, Hangsuck (Department of Actuarial Science/Mathematics, Sungkyunkwan University)
Publication Information
Journal of the Korean Data and Information Science Society / v.25, no.6, 2014 , pp. 1315-1331 More about this Journal
Abstract
Replacement rates which shows the ratio of retirement income relative to preretirement income is used for a valuable evaluation measures while discussing social security benefit levels or the adequacy of retirement income. However, replacement rates has been only used for an index for evaluating benefit level at the time of retirement or specific retirement period in advanced research projects. This article analyzes how much the uncertainty of survival has an influence on retirement income, and shows replacement rates in conformity with the period of survival as an index. The researchers named this index lifetime income replacement rates. Analysis based on this index shows both life replacement income rates of 38.3% in men's case and of 41.1% in women's case while enrolled for 20years in three pension plans - national pension, retirement pension and individual annuity.
Keywords
Individual annuity; lifetime income replacement rates; national pension; retirement pension;
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Times Cited By KSCI : 1  (Citation Analysis)
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