African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4092

Full Length Research Paper

Applying Analytic Hierarchy Process-Technique for Order Preference by Similarity to Ideal Solution (AHP-TOPSIS) model to evaluate individual investment performance of retirement planning policy

Hsin-Yuan Chang1 and Shang-Yu Chen2*
  1Department of Insurance and Financial Management, Takming University of Science and Technology, Taiwan. 2Graduate Institute of Global Trade and Logistics Student, Takming University of Science and Technology, Taiwan.
Email: [email protected]

  •  Accepted: 28 July 2010
  •  Published: 14 October 2011

Abstract

 

Owing to aged people become more and more and serious economy depression in the present society in Taiwan, how retirees will keep their past consumption level after their retirement is an important issue. The purpose of this research will appraise the performance of individual investment planning policy for retirement. Because the investment performance, risks, taxation etc must be considered in making investment policy choices, the methodology of this article will apply the analytic hierarchy process (AHP) (Satty, 1980), which is a multi-criteria decision making technique and use the technique for order preference by similarity to ideal solution (TOPSIS) to select the optimal individual retirement investment planning policy to determine the effectiveness of the proposed evaluation model. The analytic hierarchy process is to be used to establish quantitative and qualitative criteria and design a framework of an assessment method for evaluating individual investment policy performance in this research. These research results will provide some suggestions for investors retirement planning.

 

Key words: Analytic hierarchy process, investment policy, performance measurement, retirement planning.