Problem:
Suppose you have reached retirement. You have saved a good amount of money, say EUR 500,000, but, if you wish to take a currency and an amount more realistic for your country, please do so. You are now to make a comparison between two approaches to using your wealth to see you through retirement:
A. Establish what yearly pension a life insurance company is prepared to pay you for the rest of your life.
B. You manage your wealth yourself. Set an amount you want to withdraw each year, and estimate what percent you can earn on the outstanding balance.
Additional Information:
The question is from Finance and it is about personal investment portfolio. The question is a scenario where the person who is about to retire is looking for the good pension scheme to invest his money which can give him a good return, preferably from life insurance company. The solution goes through the different options available for pension scheme.