Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

How does a difference in retirement age affect present value?

April 26, 2017affect age difference PRESENT retirement value

0

Posted

How does a difference in retirement age affect present value?

1 Answer

0

Posted

The closer an individual is to retirement, the higher the resulting present value, and vice-versa. This is also due to the principles of Time-Value-of-Money. Therefore, if two appraisers use two different retirement ages, they will arrive at two different answers. This is true even if all of the other assumptions made by the appraisers were the same.