Market Return Sensitivity Analysis


This Return Sensitivity Analysis can help you understand how the retirement plan will react if market conditions are different than those used in the planning assumptions.  You can specify the range of returns that will be simulated.  In the example below, the first simulation is run with the new assumptions that the return on equities will be 200 basis points (2%) less than the base assumption.  The first simulation also assumes that bonds will return 100 basis points less and cash 50 basis points lower than the base assumption.  Subsequent simulations are incremented by the basis points you specify.

Eleven simulations are run and by comparing the outputs, you can evaluate the sensitivity of the retirement plan to market returns.



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