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Setting Assumptions (Important Considerations when making assumptions [Lt…

- - - - Adjust risk element of the risk discount rate
      - Use stochastic discount rate
      - Apply margins to assumptions which here are estimates of expected values for parameter values
  - - - Data Lacking
      - Guarantees
      - Options included
      - Overheads
      - Complexity of design
- - - - Distribution
      - Size
    - - Spouse Age
      - Spouse Mortality
    - - Mortality
      - Retirement
      - Withdrawal
  - - - Earnings
      - Price
- - - - Fluctuations over time
        
        Demographic Changes
        
        Use of Real Values
        
        Price Inflation
        
        Changes affecting economic data [Fiscal policy as well as the economic cycle]
    - - Errors in data recorded
      - Changes in statistics recording
    - - Changes in constituents of the population
      - Splitting the population into homogenous groups