This module contains the functions needed to convert all financial assets into annuities upon retirement (of the first and/or the second spouse). One of the functions calls the annuity factor built using the Life module.
- CPR.annuities.compute_partial_annuities(hh, d_returns, year, prices)¶
Function that partially converts assets into annuities when the first spouse retires, using the other functions below.
- CPR.annuities.compute_annuities(hh, d_returns, year, prices)¶
Function that fully converts assets into annuities when the last spouse retires, using the other functions below.
Function to liquidate financial assets.
p (Person) – instance of the class Person
- CPR.annuities.compute_factors(hh, p, rate, prices)¶
Function to compute an individual factor for annuities constant in real terms.
We use an adjusted rate to dampen excess factor volatility. This is because we take the total return on bonds in the year that the annuity is purchased. Ideally, the whole interest structure should be used instead, such that mean reversion would smooth out annuity prices.