Retirement, Human Capital, and the Value of Life Span Extension

Recent scientific research indicates that there may have been an extension in physically and cognitively healthy life expectancy. We examine the effects of an extension in healthy life on retirement, education and human capital investment. We find that as life expectancy rises, the proportion of the lifespan optimally allocated to work and education rises and the proportion allocated to leisure declines. Lifetime income and lifetime utility is substantially increased by lifespan extension especially if the appropriate changes are made to retirement and human capital accumulation