The direct financial impact of the financial crisis has been to deal a heavy blow to investment-based pensions; many … economic shocks, and it also explores how people may react by changing their consumption, saving and investment, work and …-varying investment opportunities and countercyclical risky labor income dynamics. We show that households near retirement will reduce …

valuable to both the young and the old. Our calibrated model quantifies welfare gains from including investment time and money …

mortality and uncertain labor income, we extend the investment universe to include not only stocks and bonds, but also survival …

allocation decisions when managing her retirement financial wealth and annuities, and we prove that she can benefit from both the …; rather, her optimal stock allocation amounts initially to more than half of her financial wealth and declines with age …. Welfare gains from this strategy can amount to 40 percent of financial wealth (depending on risk parameters and other …

derive the optimal retirement portfolio from a menu that includes payout annuities as well as an investment allocation and a …

persistently lower real returns will reshape work, retirement, saving, and investment behavior of older persons using a calibrated … dynamic life cycle model. In a low return regime, workers build up less wealth in their tax-qualified 401(k) accounts versus … interest rate changes, and the least-educated alter their behavior less. Interestingly, wealth inequality is lower in periods …

portfolios. We examine how much the individual optimally saves and where, taking into account liquid financial wealth and …