Optimal Retirement Planning Using Dynamic Asset Allocation andSimulation- Empirical Study in Taiwan Male

• Main Authors: Yi-long Kuo, 郭義龍
• Other Authors: Ender Su
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/19578488215707404485

碩士 === 國立高雄第一科技大學 === 風險管理與保險所 === 94 === Abstract This thesis applies a dynamic retirement allocation model to study the investor’s optimal behavior, which maximizes expected individual utility with investment returns and mortality uncertain. Data under the restrictions on the regulations of Labor Pension Act are used to simulate the interactions among consumption, portfolio selection, life insurance, and annuity choices. The simulation results indicate that optimal behavior is affected by income replacement and bequest. The existence of the bequest motive and the pension annuity affects investor’s demand for annuity and the bequest motive does the most. For current pension fund policies in Taiwan, the pension scheme provide retiree about 20% income replacements and it sustains only 30% consumption at retirement. Hence, investors need other personal financial plans including savings, investing, and insurance and a tactful personal financial planning is indeed important for investors before retirement.