Advances and Applications in Statistics © 2021 Pushpa Publishing House, Prayagraj, India http://www.pphmj.com http://dx.doi.org/10.17654/AS067010047 Volume 67, Number 1, 2021, Pages 47-64 ISSN: 0972-3617 Received: December 2, 2020; Accepted: January 4, 2021 2020 Mathematics Subject Classification: 62P05. Keywords and phrases: pension, annuity payment, household expenditure, inflation, sustainability. * Corresponding author A QUANTITATIVE MODEL FOR A SUSTAINABLE PENSION PLAN IN A DEVELOPING ECONOMY Felix Okoe Mettle 1 , Enoch NiiBoi Quaye 2 , Dennis Arku 1,* and Emmanuel Kojo Aidoo 1 1 Department of Statistics and Actuarial Science College of Basic and Applied Sciences University of Ghana Legon, Ghana e-mail: darku@ug.edu.gh denarku.gh@gmail.com 2 University of Kent Kent Business School United Kingdom Abstract In this paper, we propose a model for a realistic pension plan for workers in a developing economy. In the process, five investment models are proposed. The models rely on inflation adjusted future values based on average expenditures of non-poor households from the Ghana Living Standard Survey Round 7 (GLSS 7). Unlike other pension plans, the proposed models which are the first of their kind, provide specific amounts to be invested annually to attain sustainable pensions. By implementing the models on hypothetical situations, two