PT  - JOURNAL ARTICLE
AU  - Brett Doran
AU  - Graham Bornholt
TI  - The Trimmed Bootstrap: <em>An Empirical Simulation Technique for Pension Finance Researchers</em>
AID  - 10.3905/jor.2017.4.3.077
DP  - 2017 Jan 31
TA  - The Journal of Retirement
PG  - 77--95
VI  - 4
IP  - 3
4099  - https://pm-research.com/content/4/3/77.short
4100  - https://pm-research.com/content/4/3/77.full
AB  - Different variations of the Efron [1979] bootstrap have become popular tools for simulating retirement outcomes. However, to date, no study has examined their accuracy when they are used to simulate retirement outcomes. We test the accuracy of the competing bootstrap methods through a series of out-of-sample tests. The analysis shows that these bootstraps can be wildly inaccurate. Our concerns with existing methods lead us to propose a new bootstrap: the “trimmed” bootstrap. Its significantly greater accuracy will benefit policymakers, advisers, and fund members.TOPICS: Retirement, simulations