Retirement Behavior and Customer Life Expectancy
Abstract
Customer relationship valuation is dependent on the estimation of population life characteristics, with customer retirement rate behavior being one of the principal drivers of the economic benefits attributable to the customer population. A variety of statistical techniques including attrition analysis and actuarial analysis have been used to estimate customer population life characteristics. An important element in estimating the value for customer relationship intangible assets is the development of customer life expectancy and the examination of population retirement rate profile.
Contributor Notes
Richard K. Ellsworth is with Deloitte Financial Advisory Services LLP. He is an Accredited Senior Appraiser (ASA) in Business Valuation as well as a licensed Professional Engineer (PE) and a Chartered Financial Analyst (CFA). The views expressed in this article are those of the author and do not necessarily represent the views of Deloitte Financial Advisory Services LLP.