Theoretical studies suggest that unexpected changes in future survival probabilities (longevity risk) are important determinants of individuals' decisions about consumption, saving, asset allocation, and retirement timing. This study provides empirical evidence that individuals are indeed aware...

Motivated by a recent demographic study establishing a link between macroeconomic fluctuations and the mortality index kt in the Lee-Carter model, we develop a dynamic asset-liability model to assess the impact of macroeconomic fluctuations on the solvency of a life insurance company....

We study the decision problem of the optimal choice between home equity release products from a retired homeowner's perspective in the presence of longevity, long-term care, house price, and interest rate risk. The individual can choose to release home equity using reverse mortgages or home...