| dc.description.abstract | This product’s main objective is designing a cheap and affordable micro pension product which caters for all market vendors in Uganda who are expected to receive their retirement benefits in annuity form starting at their retirement age of 55 years.
Key assumptions made include; the interest rate on maturity value, Kenyan mortality, interest rate on annuity payment, the minimum term, age of contribution, minimum contribution, surrender charge, radix and expenses (including management charges and commission charges.)
From the above, Microsoft excel was mainly used to calculate the maturity value at the end of the year of contribution of each policyholder depending on age, term of contribution and gender. That maturity value is used to buy annuity payments payable at the end of each year after retirement guaranteed for 15 years and life thereafter. The product is further tested to what extent it satisfies the principle of equivalence and sensitivity analysis is also carried to determine the main factors that may affect the product.
The analysis of results show that male and female lives have the same maturity value provided they have the same annual contribution, age and term at retirement. However, the male life is expected to receive lower annuity amount than the female life after retirement .This is because males are expected to have a lower mortality rate than females at ages 55 to 69 (the annuity payments term after retirement) according to Kenyan mortality tables 2007-2010.
Recommendations and conclusions are also provided in chapter 5 of this document. | en_US |
