tpCFret: Third Pillar Cash Flows in retirement
In sstoeckl/pensionfinanceLi: Optimal Pension Decisions in Liechtenstein

Description Usage Arguments Value Examples

Calculate cash flows from third pillar in retirement

tpCFret(
  ret_age = 65,
  c_age,
  w3,
  alpha,
  wealth_at_ret_age,
  retr,
  psi = 0.015,
  warnings = TRUE
)

`ret_age`	optional, retirement age, can be set anywhere between 60 and 70 (default: 65)
`c_age`	the investor's current age (assuming birthday is calculation-day)
`w3`	third pillar portfolio allocation (given either as vector or as matrix with entries) for all years
`alpha`	parameter to choose fraction of wealth NOT consumed during retirement but kept for investment (and subsequent consumption) - see file 'Consumption_3p.ods'
`wealth_at_ret_age`	lumpsum from second pillar (after tax using 'taxCFlumpsum') plus third pillar (wealth at retirement from 'tpCFwork()' after taking away fraction of third pillar savings that is converted to a life-long pension 'nu2')
`retr`	GivenVar: investment return scenarios (real)
`psi`	optional, spread to take a loan/leverage for third pillar savings
`warnings`	optional: should warnings be given? (default=TRUE)

list with two elemnts: - consumption during pension years (matrix with dim=c(122-ret_age,# of Scenarios)) - Development of wealth during pension years (matrix with dim=c(122-ret_age,# of Scenarios))

data(retr)
tpret_ex <- tpCFret(ret_age=65,c_age=42,
w3=setNames(c(.25,.25,.25,.25,0),c("msci","b10","recom","libor","infl")),
           alpha=0.96,wealth_at_ret_age=100000,
           retr=retr[,,1:10],psi=0.015)
tpret_ex <- tpCFret(ret_age=65,c_age=42,
w3=setNames(c(.30,.30,.30,.10,0),c("msci","b10","recom","libor","infl")),
           alpha=0.96,wealth_at_ret_age=c(rep(-10000,5),
           rep(10000,5)),retr=retr[,,1:10],psi=0)