This paper develops a general equilibrium life-cycle model with endogenous retirement and disability risk, in order to … analysis focus on the increase in the normal retirement age (NRA) from age 65 to 67 (Reform 2007) and the recent increase in … early retirement benefits in the future …

uninsured capital income risk, and suffer from an information-processing capacity constraint. For given attention devoted to … capital income risk, we solve for the optimal consumption-saving choices and show that the expected welfare is increasing with … households would pay more attention to capital income risk if they have (i) lower initial wealth endowment, (ii) lower marginal …

risks in retirement. Our life cycle model captures these links in order to explain why homeownership in Germany is so low …

hundred age brackets and we investigate how changes in the birth rates, survival rates, and the retirement age affect the …, and the capital-income ratio. It follows that the pension composition in general and social security in particular is …

optimal consumption-investment problem with labor income. The utility function is unbounded and uncertainty stems from a …

, an increase in volatility would encourage those with a greater-than-unity relative risk aversion to purchase more …

intergenerational risk sharing (the role of the second tier). This way labor supply is undistorted …

increasing the standard and early retirement ages in a discretionary, scheduled, or automatic way, and by making it harder for … people to retire prematurely. To this end, countries have adopted alternative retirement age strategies, but our analyses …. In addition, our analyses demonstrate that countries risk falling short of their goals given their use of projection …