The expected monthly pension payment from the pension fund at the moment of retirement is estimated by taking the total value
of the assets at the moment of retirement and dividing it by the life expectancy at the moment of retirement (expressed in months).
Total Capital in the Fund
Total capital invested in the fund is obtained by cumulating savings on a yearly basis and capitalizing them at the real
return rate of a balanced portfolio (composed for 50% of international government bonds and for 50% of international stocks).
At the beginning of every period from total accumulated capital are deducted management fees (assumed to be 0.5% of the
cumulated assets). The benchmarks used to estimate the returns of the two asset categories are the World Government Bond
Index (WGBI) and the MSCI World Index.