Hdl Handle:
http://hdl.handle.net/10545/621576
Title:
UK pension changes in 2015: some mathematical considerations
Authors:
Stubbs, John; Adetunji, Jacob ( 0000-0002-8491-6440 )
Abstract:
This paper presents a mathematical treatment of some of the changes made to pension arrangements by the UK government in 2015. A mathematical model of a pension fund is developed based on three variables: life expectancy of pensioner, interest rates on investments and rates of inflation. The model enables a prospective pensioner to decide, at point of retirement and on the basis of predicted income streams, whether to opt for, (i) a (life) annuity or a draw down scheme, (ii) an inflation proofed (index linked) income or a fixed income and (iii) an immediate income or a deferred income. Numerical examples are provided to add clarity to the financial options available at retirement. On the basis of the numerical examples given, the paper concludes by urging caution on the part of the pensioner before taking an annuity rather than a draw down scheme, an index linked rather than a fixed income and a deferred rather than an immediate pension income. UK pension changes in 2015: some mathematical considerations.
Affiliation:
University of Derby
Citation:
Stubbs, J. and Adetunji, J. (2016) 'UK pension changes in 2015: some mathematical considerations The Mathematical Gazette, 100 (548):193
Publisher:
Cambridge University Press
Journal:
The Mathematical Gazette
Issue Date:
14-Jun-2016
URI:
http://hdl.handle.net/10545/621576
DOI:
10.1017/mag.2016.55
Additional Links:
https://www.cambridge.org/core/product/identifier/S0025557216000553/type/journal_article
Type:
Article
Language:
en
ISSN:
00255572; 20566328
Sponsors:
NA
Appears in Collections:
Environmental Sustainability Research Centre

Full metadata record

DC FieldValue Language
dc.contributor.authorStubbs, Johnen
dc.contributor.authorAdetunji, Jacoben
dc.date.accessioned2017-05-02T15:07:46Z-
dc.date.available2017-05-02T15:07:46Z-
dc.date.issued2016-06-14-
dc.identifier.citationStubbs, J. and Adetunji, J. (2016) 'UK pension changes in 2015: some mathematical considerations The Mathematical Gazette, 100 (548):193en
dc.identifier.issn00255572-
dc.identifier.issn20566328-
dc.identifier.doi10.1017/mag.2016.55-
dc.identifier.urihttp://hdl.handle.net/10545/621576-
dc.description.abstractThis paper presents a mathematical treatment of some of the changes made to pension arrangements by the UK government in 2015. A mathematical model of a pension fund is developed based on three variables: life expectancy of pensioner, interest rates on investments and rates of inflation. The model enables a prospective pensioner to decide, at point of retirement and on the basis of predicted income streams, whether to opt for, (i) a (life) annuity or a draw down scheme, (ii) an inflation proofed (index linked) income or a fixed income and (iii) an immediate income or a deferred income. Numerical examples are provided to add clarity to the financial options available at retirement. On the basis of the numerical examples given, the paper concludes by urging caution on the part of the pensioner before taking an annuity rather than a draw down scheme, an index linked rather than a fixed income and a deferred rather than an immediate pension income. UK pension changes in 2015: some mathematical considerations.en
dc.description.sponsorshipNAen
dc.language.isoenen
dc.publisherCambridge University Pressen
dc.relation.urlhttps://www.cambridge.org/core/product/identifier/S0025557216000553/type/journal_articleen
dc.rightsArchived with thanks to The Mathematical Gazetteen
dc.subjectUK Pensionen
dc.subjectDefermenten
dc.subjectAnnuityen
dc.subjectPension defferalen
dc.subjectFixed incomeen
dc.subjectIndex-linked incomeen
dc.subjectDraw-down schemeen
dc.titleUK pension changes in 2015: some mathematical considerationsen
dc.typeArticleen
dc.contributor.departmentUniversity of Derbyen
dc.identifier.journalThe Mathematical Gazetteen
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