An Age-Based, Three Dimensional, Universal Distribution Model Incorporating Sequence Risk
25 Pages Posted: 24 May 2011 Last revised: 11 May 2016
Date Written: April 11, 2011
The authors develop an Age-Based Three Dimensional Distribution Model that illustrates a retiree transition from early retirement into later retirement, including superannuated years for the long-lived who continue to survive. The model for this concept development simultaneously: 1) Establishes an age-based distribution model; 2) Incorporates current age life expectancy directly into the model; 3) Addresses survivorship into superannuated ages; 4) Addresses sequence risk to incorporate decisions due to market changes as the retiree ages.
Keywords: Retirement Planning, Adjustable Withdrawal Rates, Sequence Risk, Probability of Failure, Expected Longevity
JEL Classification: D14, D81, D90, G11, G17
Suggested Citation: Suggested Citation