Using an ANPV calculation could result in an underestimate or overestimate of expenses (and income) based on the actual mortality experience of the individual versus the population average. However, leveraging ANPV for these calculations is considered an acceptable and appropriate method by experts in this area, specifically those in the insurance and pension industries.
Articles in this section
- How is the Spending Reductions Needed section of the ‘Can I Afford My Goals?’ report determined?
- If the balance sheet calculation uses actuarial net present value for retirement expense goals (incorporating life expectancy), doesn’t that mean half the population will live longer than the planning horizon?
- Is the Household Balance Sheet independent of current/future asset allocations?
- What is the Funding Percent on the Household Balance Sheet?
- What is the Surplus/Deficit on the Household Balance Sheet?
- How are 529 Plan evaluated in the Balance Sheet?
- Where does goalgamiPro use the different Present Value calculations?
- How are Social Security balance Sheet values calculated?
- What is the difference between Actuarial and End of Life expectancy methods?
- How is the Additional Savings Needed section of the ‘Can I Afford My Goals?’ report determined?