pencalc: pencalc

In renukasane/penCalc: A package to simulate the monthly pension received by a person

Description

Function to simulate pension outcomes

Usage

pencalc(age=list(age.entry=25
                       ,age.exit=60),
               wage=list(wage=25000
                        ,growth.rate=0.08
                        ,contribution.rate=0.2
                        ,initial.amount=0),
               inflation=list(mean.sd.inflation=c(0.04,0)
                             ,real=FALSE),
               inv.weights=list("lc"),
               returns=list(returns=data.frame(mean=c(0.07, 0.10, 0.16),
                                               sd=c(0, 0, 0.25)),
                            fees=c(monthly.fees.expenses=0.01,100)),
               annuity=list(proportion.annuitised=0.40,
                            price=4087))

Arguments

age	List of two elements : age.entry: Age at which a person enters the pension system. age.exit: Age at which a person exits the pension system.
wage	List of four elements: wage: There are two choices: Single Wage: A numeric entry of the starting wage Wage Vector: A vector of wages for each year a person is in the pension system. growth.rate: Annual wage growth. If a vector of wages is entered, then the values set in growth.rate should be 0. Else, there are two choices: Constant Growth Rate: A single numeric entry of the wage growth rate Growth Rate Vector: A vector of numeric entries of wage growth rate. The length should be equal to 1 less than the total number of years a person is in the pension system. contribution.rate: Percentage of the wage to be invested in a portfolio. There are two available choices Single contribution rate: A single numeric entry which will remain constant throughout. Contribution rate vector: A vector of numeric entries for each year the person is in the pension system. initial.amount: Numeric entry signifying an amount accumulated before the simulation begins.
inflation	List of two elements: mean.sd.inflation: A vector with the annual mean and standard deviation of the expected inflation. real: Logical symbol (TRUE) to get real prices.
inv.weights	List of one element. There are two choices: Character "lc" to use the default life cycle weights A matrix of investment weights with 3 column providing weights for government bonds, corporate bonds and equity respectively
returns	List of two elements: returns: A data frame of mean and standard deviation of government bonds, corporate bonds and equity. fees: Monthly fees and expenses: The asset under management fees (in Annual flat fee: Flat amount to be deducted at the end of each year.
annuity	List of two elements: proportion.annuitised: The proportion of accumulations to be annuitised. price: The price of an annuity that pay Rs.1 for life.

Value

Mean and standard deviation of pension, terminal price and replacement rate

Author(s)

Renuka Sane, Arjun Gupta

Examples

pencalc(age=list(age.entry=25
                          ,age.exit=60),
                   wage=list(wage=25000
                            ,growth.rate=0.08
                         ,contribution.rate=0.2
                           ,initial.amount=0),
                   inflation=list(mean.sd.inflation=c(0.04,0)
                                 ,real=FALSE),
                   inv.weights=list("lc"),
                   returns=list(returns=data.frame(mean=c(0.07, 0.10, 0.16),
                                           sd=c(0, 0, 0.25)),
                                fees=c(monthly.fees.expenses=0.01,100)),
                  annuity=list(proportion.annuitised=0.40,
                               price=4087))

renukasane/penCalc documentation built on May 14, 2019, 8:22 a.m.