separating parameters that now reflect both risk aversion and time preference. We explore a number of barriers to developing a … parameter for risk aversion can restore plausible retirement behavior, but the pattern of stock holdings is too high, especially … at younger ages, for plausible values of the risk aversion parameter. At the moment, no easy solution is at hand to this …

withdrawal strategy, assuming risk aversion, stochastic capital markets, and uncertain lifetimes. The resulting portfolio … retirees across a wide range of risk preferences, supporting financial planning advisors who often recommend this rule. We then … death." As risk aversion rises, annuities first crowd out bonds in retiree portfolios; at higher risk aversion still …

mortality risk. In addition to stocks and bonds, households also have access to incomplete annuity markets offering a hedge … against mortality risk. We show that a considerable fraction of wealth should be annuitized to skim the return enhancing … mortality credit. The remaining liquid wealth (stocks and bonds) is used to hedge labor income risk during work life, to earn …

longevity risk, and partially-refundable premiums. Welfare rises since policyholders exercise the product's flexibility by …