Fall 2019 - ACMA 850 G100

Actuarial Science: Selected Topics (4)

Stochastic Models of Retirement Income

Class Number: 4388

Delivery Method: In Person


  • Course Times + Location:

    Mo 10:30 AM – 12:20 PM
    WMC 3250, Burnaby

    We 10:30 AM – 12:20 PM
    WMC 2503, Burnaby

  • Instructor:

    Barbara Sanders
    778 782-9074
    Office: SC-K10554



Course Title: Stochastic Models of Retirement Income

Pre-requisties: Permission of the instructor.

Course Outline:

This course examines models for decision-making in the presence of uncertainty, with a special interest in decisions involved in planning for income in retirement. Topics covered include:

1.General theory of economic and financial decisions under risk

  •    Utility, risk aversion, and decision theory
  •    Risk management: portfolio choice, consumption and saving, optimal insurance
  •    Risk sharing: centralized and decentralized models for the efficient allocation of risks
2.Applications in the context of retirement income
  •    Individual savings decisions
  •    Risk transfers and guarantees
  •    Risk sharing in collective retirement arrangements



  • Assignments, presentations, project 50%
  • Exam 50%


Above grading is subject to change.



Eeckhoudt, L., Gollier, C., and Schlesinger, H. (2005). Economic and Financial Decisions under Risk. Princeton University Press.

Additional weekly readings will be distributed via Canvas.

Graduate Studies Notes:

Important dates and deadlines for graduate students are found here: http://www.sfu.ca/dean-gradstudies/current/important_dates/guidelines.html. The deadline to drop a course with a 100% refund is the end of week 2. The deadline to drop with no notation on your transcript is the end of week 3.

Registrar Notes:

SFU’s Academic Integrity web site http://www.sfu.ca/students/academicintegrity.html is filled with information on what is meant by academic dishonesty, where you can find resources to help with your studies and the consequences of cheating.  Check out the site for more information and videos that help explain the issues in plain English.

Each student is responsible for his or her conduct as it affects the University community.  Academic dishonesty, in whatever form, is ultimately destructive of the values of the University. Furthermore, it is unfair and discouraging to the majority of students who pursue their studies honestly. Scholarly integrity is required of all members of the University. http://www.sfu.ca/policies/gazette/student/s10-01.html