The present value of the future flow of pensions has a positive impact on the probability of retiring, with larger pensions shortening the number of years between becoming eligible for retirement and actually claiming the retirement pension.
Increases in the total present value of the flow of pensions that a person will receive from the year she retires to the year she dies, i.e. a rise in SSW, increases the hazard.
The higher flow of pensions that workers receive for staying at work one additional year compensate for both the loss of leisure that they experience for the additional year that they keep contributing and the wage they receive at work.
Increases in the total present value of the flow of pensions that a person will receive from the year she retires to the year she dies (increases in SSW) increases the hazard while an increase in the difference of this amount from postponing retirement, SSA, decreases the hazard.
More precisely, we compute each individual's Net Pension Cost (NPC): the expected discounted value of the flow of future pension and unemployment payments received from the system, net of any future social contributions paid into the system.
The traditional supply-and-demand calculus for credit markets compared the flow of new money with pension funds; insurers and mutual funds with the calendar of new issues.
While corporate managers frequently incur large obligations in order to acquire businesses at premium prices, most pension plans have very minor flow-of-funds problems.
However there are many who believe that the flow of funds into defined contribution pension schemes could actually increase, as and when savers know they have more freedom over what they can do in retirement with their accumulated pot.
Given the chancellor's recent changes to pensions, the flow of cash into property as a secure income stream for the already wealthy is only likely to increase.
But having bond debt instead of pension debt will improve G.M.'s cash flow over the short term, said G.M.'s treasurer, Walter Borst.
