A Study on the Influence of Commercial Annuity Design on Income Replacement Rate

• Main Authors: Chang-Hsuan Chou, 周長萱
• Other Authors: Ai-Ju Shao
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/9psmvn

碩士 === 銘傳大學 === 風險管理與保險學系碩士班 === 94 === “The Defined Contribution Plan” was put into practice last year. Insurance companies can join the pension market by “Regulation for Implementation of Annuity Insurance Scheme under Labor Pension Act.” However, the pension products don’t protect enough in Taiwan insurance industry, and can’t fill most consumers’ needs. This paper designs a new qualified pension product referring to the products from foreign insurance companies, and predicts the return of investment by Vasicek one-factor interest rate model and stock price model. Moreover, this paper utilizes the pension accumulated model to calculate the replacement rate of total accumulated pension. The results are as follows: 1.This new product supplies retired women with 35.95% of replacement rate and retired men with 41.12%. It appears that this new product is qualified enough to be an investing tool of accumulating pension. 2.Comparing the sensitivities of the rate of discount factor, period certain and mortality evaluated by the method of concomitant variation, this paper found that the replacement rate was most sensitive to the change in interest of discount factor, and lower to period certain. The replacement rate was lowest sensitive to the change in the base of mortality.