EDHEC-Princeton Goal Price Index – Retirement Income – 2043

This version of the EDHEC-Princeton Retirement Goal Price Indices represents the minimum capital needed to secure a replacement income normalised to $1 per year in retirement, plus possibly an adjustment for the cost of living. The income cash flows start in January 2043 and last 20 years. In other words, the index is the price of a bond that pays an annual coupon of $1, plus possibly an adjustment for the cost of living during the decumulation period.

The index moves every month as the retirement date approaches and as interest rates fluctuate. As a general rule, lower rates imply greater index values, meaning that replacement income is more expensive, while higher rates result in lower index values.

The index value can be used to measure the purchasing power of retirement savings in terms of replacement income: the replacement income that can be financed with a given amount of savings is obtained by dividing the capital by the index value.

 

Historical values

This figure displays the values of two Goal Price Indices since January 2018. The index with no adjustment is the present value of a replacement income equal to $1 per year. The index with a cost-of-living adjustment is the present value of a replacement income equal to $1 per year and growing at 2% per year.

 

Monthly values
2018


Not adjusted
Cost-of-Living-adjusted
January
7.57
14.80
February
7.06
13.76
March
6.85
13.31
April
7.16
13.90
May
6.97
13.51
June
7.13
13.82
July
7.38
14.27
August
n.a.
n.a.
September
n.a.
n.a.
October
n.a.
n.a.
November
n.a.
n.a.
December
n.a.
n.a.

 

Retirement Income Calculator

An EDHEC-Princeton Goal Price Index - Retirement Income can be used to measure the purchasing power of retirement savings in terms of replacement income.

Enter retirement savings here: $

Based on the latest index values, the replacement income that can be financed with these savings is estimated to be:

Either $ 0 per year for 20 years as of January 2043;

Or      $ 0 per year plus an annual 2% cost-of-living adjustment for 20 years as of January 2043.

Disclaimer: The replacement income is an estimate based on the values of the EDHEC-Princeton Goal Price Index - Retirement Income - 2043. The index is itself based on a model, and it does not represent the actual price of an annuity or a deferred annuity.

 

Data download
Monthly values

Document download
Index construction rules

Disclaimer

 

EDHEC-Princeton Goal Price Indices
Retirement Income
July 2018 Values
Zone, Retirement year
Not adjusted
Cost-of-Living-adjusted
US, 2023
13.49
17.56
US, 2028
11.60
16.67
US, 2033
9.97
15.82
US, 2038
8.57
15.02
US, 2043
7.38
14.27
US, 2048
6.35
13.57
US, 2053
5.47
12.91
US, 2058
4.71
12.28

EDHEC-Princeton Goal Price Indices
Retirement Wealth
July 2018 Values
Zone, Retirement year
Not adjusted
Cost-of-Living-adjusted
US, 2023
0.88
0.97
US, 2028
0.76
0.92
US, 2033
0.65
0.87
US, 2038
0.56
0.83
US, 2043
0.48
0.79
US, 2048
0.42
0.74
US, 2053
0.36
0.71
US, 2058
0.31
0.67

 

 

 

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