We develop a full mathematical theory in a quantitatively focused study especially for optimal annuitization with early retirement. Analytically tractable optimal consumption/investment strategies and wealth process are obtained with mandatory retirement on a finite date. Compared to the...

In this paper, we study an optimal consumption and investment problem of an economic agent who can choose flexible labor supply and an option to early retire in the existence of mandatory retirement date. We model the agent's preference as the Cobb-Douglas utility, which is a function of...