Simulating Pension Income Scenarios with penCalc : An Illustration for India's National Pension System

This paper sets out initial results from a new modeling exercise for Defined Contribution (DC) pensions. It develops a package called penCalc based on the open source software language R, which is popular in the academic and modeling communities. A...

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Main Authors:	Sane, Renuka, Price, William J.
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2018
Subjects:	PENSIONS PENSION FUNDS RETIREMENT INCOME FORECASTING SIMULATION MODELING DEFINED CONTRIBUTION
Online Access:	http://documents.worldbank.org/curated/en/198991516201363951/Simulating-pension-income-scenarios-with-penCalc-an-illustration-for-Indias-national-pension-system http://hdl.handle.net/10986/29214

id	okr-10986-29214
recordtype	oai_dc
spelling	okr-10986-292142021-06-08T14:42:48Z Simulating Pension Income Scenarios with penCalc : An Illustration for India's National Pension System Sane, Renuka Price, William J. PENSIONS PENSION FUNDS RETIREMENT INCOME FORECASTING SIMULATION MODELING DEFINED CONTRIBUTION This paper sets out initial results from a new modeling exercise for Defined Contribution (DC) pensions. It develops a package called penCalc based on the open source software language R, which is popular in the academic and modeling communities. All the coding is made freely available. The tool is illustrated for India's DC National Pension System. The aim is not to present the perfect model for India, but to show how the tool works so that policy makers and regulators can see its potential advantages and develop it for their own uses. It generates scenarios for future assets and income dependent on user-defined and changeable assumptions for asset returns, contributions, wages, years in the labor force, and annuity prices, among other parameters. Assumptions can be tailored to different countries and user determined scenarios. Many extensions could be developed, which will be the subject of future work. The international context is highlighted through similar modeling by regulators and pension funds in other jurisdictions. Some of these are more complex or complete than the results in this paper, but by explaining the initial model and making the coding freely available, the authors provide a powerful yet simple and low-cost tool to be adopted and adapted. 2018-01-23T16:43:41Z 2018-01-23T16:43:41Z 2018-01 Working Paper http://documents.worldbank.org/curated/en/198991516201363951/Simulating-pension-income-scenarios-with-penCalc-an-illustration-for-Indias-national-pension-system http://hdl.handle.net/10986/29214 English Policy Research Working Paper;No. 8304 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia India
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	PENSIONS PENSION FUNDS RETIREMENT INCOME FORECASTING SIMULATION MODELING DEFINED CONTRIBUTION
spellingShingle	PENSIONS PENSION FUNDS RETIREMENT INCOME FORECASTING SIMULATION MODELING DEFINED CONTRIBUTION Sane, Renuka Price, William J. Simulating Pension Income Scenarios with penCalc : An Illustration for India's National Pension System
geographic_facet	South Asia India
relation	Policy Research Working Paper;No. 8304
description	This paper sets out initial results from a new modeling exercise for Defined Contribution (DC) pensions. It develops a package called penCalc based on the open source software language R, which is popular in the academic and modeling communities. All the coding is made freely available. The tool is illustrated for India's DC National Pension System. The aim is not to present the perfect model for India, but to show how the tool works so that policy makers and regulators can see its potential advantages and develop it for their own uses. It generates scenarios for future assets and income dependent on user-defined and changeable assumptions for asset returns, contributions, wages, years in the labor force, and annuity prices, among other parameters. Assumptions can be tailored to different countries and user determined scenarios. Many extensions could be developed, which will be the subject of future work. The international context is highlighted through similar modeling by regulators and pension funds in other jurisdictions. Some of these are more complex or complete than the results in this paper, but by explaining the initial model and making the coding freely available, the authors provide a powerful yet simple and low-cost tool to be adopted and adapted.
format	Working Paper
author	Sane, Renuka Price, William J.
author_facet	Sane, Renuka Price, William J.
author_sort	Sane, Renuka
title	Simulating Pension Income Scenarios with penCalc : An Illustration for India's National Pension System
title_short	Simulating Pension Income Scenarios with penCalc : An Illustration for India's National Pension System
title_full	Simulating Pension Income Scenarios with penCalc : An Illustration for India's National Pension System
title_fullStr	Simulating Pension Income Scenarios with penCalc : An Illustration for India's National Pension System
title_full_unstemmed	Simulating Pension Income Scenarios with penCalc : An Illustration for India's National Pension System
title_sort	simulating pension income scenarios with pencalc : an illustration for india's national pension system
publisher	World Bank, Washington, DC
publishDate	2018
url	http://documents.worldbank.org/curated/en/198991516201363951/Simulating-pension-income-scenarios-with-penCalc-an-illustration-for-Indias-national-pension-system http://hdl.handle.net/10986/29214
_version_	1764468779220205568

Simulating Pension Income Scenarios with penCalc : An Illustration for India's National Pension System

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