Click here to download: zmodel-008-uk-pension
In zmodel #008, we analyse a very specific investment opportunity related to UK pensions for British Citizens living overseas.
The UK pension system allows voluntary contributions from overseas nationals that lead to a defined benefit government pension.
Depending on the situation of the particular individual the return on these voluntary contributions can be quite high, especially given that the counterparty is the UK government so the risk on the investment is very low.
We use zmodel #007 (PPP) to help us with this model. Please review the comments in #007 if you are unfamiliar with the PPP method of forecasting long-run exchange rates. We take the perspective of a British Citizen resident in Japan, but the model could be easily adapted for residents of other countries.
Remember that you can email firstname.lastname@example.org to request specific models and we will build them for free if we think they will be of general interest to our readers (and to us!), so please feel free to request other models.