Comprehensive Financial Planning for a Sustainable Retirement†

Tahani Nabil and Robinson Chris ()
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Tahani Nabil: Associate Professor of Finance and Area Coordinator, School of Administrative Studies, York University
Robinson Chris: Professor Emeritus of Finance and Senior Scholar, School of Administrative Studies, York University

Financial Planning Research Journal, 2024, vol. 10, issue 1, 20

Abstract: We demonstrate a comprehensive approach to the dual problems of saving enough for retirement and determining how much saving is enough at retirement date, using a probabilistic (stochastic) model. Our model estimates the probability of success of a comprehensive plan that spans the life cycle. Retirement plans are riskier than the financial planners’ deterministic models show, using a simple case study as a comparative example. Variables the family can control for a successful retirement plan are the patterns of pre-retirement saving and retirement consumption, the probability of running out of money in retirement that the family will accept, and the age of retirement.

Keywords: comprehensive financial planning; sustainable retirement; probability of ruin; stochastic present value; stochastic future value (search for similar items in EconPapers)
JEL-codes: C63 D14 D91 G11 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:finprj:v:10:y:2024:i:1:p:20:n:1002

DOI: 10.2478/fprj-2024-0002

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