风险与保险原理课件_ch19 退休风险的原因（英文版）（20页）ppt.pdf

1.Retirement risk arises from uncertainty concerning 

the time of death

2.It is influenced by physiological 

and cultural hazards

people tend to live longer 

today

people are retiring earlier

Risks Associated with Superannuation

Two parts to the retirement risk

individual will 

not have accumulated sufficient assets by the time 

retirement arrives

assets that have been accumulated 

will not last for the remainder of his or her lifetime

Retirement Risk Alternatives

1.Some people attempt to avoid the retirement risk 

by not retiring.

2.Continuing employment does not 

totally avoid the risk, since the probability of 

disability increases with age.3.The risk of outliving an accumulation can be 

transferred to an insurer.4.Some individuals transfer the retirement risk to 

their children or to society by not preparing for retirement.

An Overview of Retirement Planning Process

1.Estimate future income need2.Determine how the 

funds required to meet the need will be accumulated

3.Plan the manner in which the accumulation will be consumed

Sources of Retirement Funding

1.The first leg:  Social Security2.The second leg:Qualified pensions and profit sharing plans

3.The third leg:Personal savings

First Line of Defense:  Social Security

1.Old-age part of OASDI provides a lifetime pension 

to workers and their dependents at age 65, with a 

reduced benefit at age 62.

2.Social security provides 

about 60% of retirement needs for minimum wage earners 

and about 30% of need for those who earned maximum FICA 

wage base.

3.Social security provides a solid base, 

but is generally inadequate to allow continuation 

of pre-retirement standard of living.