default risk, which results in significant decreases in pension benefits. In order to address the challenge of annuity income … decision to increase annuities in the face of annuity income uncertainty is analogous to deciding when to buy the asset in the …

brief review of various retirement income modeling approaches including historical back testing, Monte Carlo simulations …Adequately sustaining lifetime income is a critical portfolio objective for retired investors. This article provides a …, and other risk modeling techniques. Implausible assumptions underlying risk models may mislead investors concerning the …

-varying investment opportunities and countercyclical risky labor income dynamics. We show that households near retirement will reduce … workers lost a substantial portion of their retirement saving. The financial sector implosion produced an economic crisis for … retirement, and annuitization decisions. We do so with a realistically calibrated lifecycle framework allowing for time …

We develop a methodology to estimate households’ exposure to systematic income risk and its causal effect on portfolio … substantial cross-sectional variation in systematic income risk. We find that households more exposed to business cycle … includes employer-employee matches, detailed decomposition of income and wealth, and income expectations. We document …

(2005). We extend it by unemployment risk using Markov chains to model the transition between different employment states … systems as those established in the EU are able to offset the negative impact of unemployment risk on the portfolio … persistence. -- Precautionary savings ; unemployment insurance ; long-term unemployment ; income uncertainty …

frictions render labor-market risk countercyclical and endogenous to monetary policy. Our main result is that a majority of …

Households can rely on private savings or on public unemployment insurance to hedge against the risk of becoming … risk on households’ equity holdings. When incorporating long-term unemployment, the US-equity share drops. This negative … significantly alter portfolio decisions. We show that different responses of portfolios to unemployment risk can be attributed to …