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The Calculus of Retirement Income: Financial Models for Pension Annuities and Life Insurance | 
| Author: Moshe A. Milevsky
Publisher: Cambridge University Press
Category: Book
List Price: $49.00
Buy New: $35.20
You Save: $13.80 (28%)
New (16) Used (4) from $35.20
Avg. Customer Rating:  4 reviews
Sales Rank: 411712
Media: Hardcover
Number Of Items: 1
Pages: 352
Shipping Weight (lbs): 1.2
Dimensions (in): 9.3 x 6.1 x 0.9
ISBN: 0521842581
Dewey Decimal Number: 368.3701
EAN: 9780521842587
ASIN: 0521842581
Publication Date: March 13, 2006
Availability: Usually ships in 1-2 business days
Shipping: International shipping available
Condition: Brand New. Delivery is usually 5 - 8 working days from order, International is by Royal Mail Airmail
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Product Description
The book introduces and develops the basic actuarial models and underlying pricing of life-contingent pension annuities and life insurance from a unique financial perspective. The ideas and techniques are then applied to the real-world problem of generating sustainable retirement income towards the end of the human life-cycle. The role of lifetime income, longevity insurance, and systematic withdrawal plans are investigated in a parsimonious framework. The underlying technology and terminology of the book are based on continuous-time financial economics by merging analytic laws of mortality with the dynamics of equity markets and interest rates. Nonetheless, the book requires a minimal background in mathematics and emphasizes applications and examples more than proofs and theorems. It can serve as an ideal textbook for an applied course on wealth management and retirement planning in addition to being a reference for quantitatively-inclined financial planners.
Book Description
This book develops the underlying mathematical framework to combine investment with the uncertainty of mortality. The results, formulas and examples should also help retirees better manage their financial affairs, in addition the instructors teaching their material to the next generation of financial advisors.
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| Customer Reviews:
Valuable insight into retirement math October 5, 2008
Wealth Odyssey: The Essential Road Map For Your Financial Journey Where Is It You Are Really Trying To Go With Money?br /br /I had purchased this book when if was first published and have now come back to it after reading his recent work (link below). This earlier book is a very detailed discussion of the computations that go into the question of retirement income. For those who are math oriented, this is a good book to begin to get insight into solving the retirement income question. He has a supporting website at http://www.ifid.ca/cri.htm (cut and paste).br /br /For those who would like to have insight into how to apply this math, his more recent book Are You a Stock or a Bond? Create Your Own Pension Plan for a Secure Financial Future will help, and it is an easier read for most, especially the non math oriented.br /br /As a holder of a physics degree, the math so far applies to static periods, i.e. considering what age a person currently is (t for time is static). However, the time period continually decreases since longevity is continually shortening as a person ages. Therefore, the time should be evaluated as delta t or changing time. In practice, I see this difference between ages emerge as I evaluate different situations. Readjusting the formula for each age, as one ages, does not work since in practice this results in taking more out early and having to retrench later.br /br /However, getting deeper insight into the mathematical approach is extremely enlightening and useful to those who are so oriented.
 Excellent September 2, 2008
0 out of 1 found this review helpful
The bar must be raised for financial planners . . .this book does the trick.
living and dying is so complicated to model! June 5, 2006
4 out of 7 found this review helpful
To many people, the book's topic is an inherently dreary and offputting one. How to estimate retirement income for a group of people, who typically are still in the workplace? br /br /To do so, the book invokes such common ideas as numerical simulations. Here, of a general diffusion process, specialising to Brownian motion. Who could have imagined, decades ago, when such ideas were introduced in physics, that they would one day have use to actuaries and the like? A neat side note is that one of the book's problems involves using Excel's ability to simulate Brownian processes. br /br /A key chapter compares defined benefit and defined contribution pensions. From the vantage of the pension provider. Who needs to understand as accurately as possible the ultimate costs of both, in order to determine what to offer employees.
 Where is the additional material? May 7, 2006
10 out of 15 found this review helpful
I purchased this book over a month ago. I expected to receive additional supporting materials which would greatly aid my understanding of the various formulas used throughout the book. The additional supporting material has yet to be posted. As such, currently, i feel i have been overpromised and underdelivered.
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