The aim of traditional retirement planning is to set a wealth accumulation target for your retirement date so that your desired expenditures can be obtained using a “safe” withdrawal rate. But it is quite difficult to know if you are making progress toward this target. Volatility over short...

Focusing on a “safe withdrawal rate” and then deriving a “wealth accumulation target” to achieve by the retirement date is the wrong way to think about retirement planning. Such a formulation isolates the working (accumulation) and retirement (decumulation) phases. When considered...

During a time of rapid economic transformation in Vietnam, we examine two possibilities for elderly support: living together with children and receiving remittances. Our analysis uses four household surveys conducted in Vietnam between 1992 and 2004. With the highly detailed 1997/98 survey, we...

Many countries are currently increasing the advanced funding of their public pension systems to improve their sustainability in the face of rapidly aging populations. When pensions are funded, the issue of asset allocation becomes of paramount importance. Standard portfolio selection theory...

The Vietnam Living Standard Surveys (VLSS) are supposed to be representative of the entire population in Vietnam. However, we uncover an anomaly that the amount of remittances received from domestic sources is significantly larger than the amount of remittances sent to domestic sources, implying...

In recent years, the share of elderly in the total population is increasing around the world. Rising proportionally are claims on public pension systems and health care expenditures. This places extra pressure on government budgets. As a result, countries which implement only pay-as-you-go...