This paper investigates the effect of adverse selection on the private annuity market in a model with two periods of … retirement and two types of individuals, who differ in their life expectancy. In order to introduce the existence of limited …-time pension insurance, we consider a model where for each period of retirement separate contracts can be purchased. Demand for the …

This paper investigates the optimal retirement of an individual in the presence of involuntary unemployment risks and … emphasized in recent studies. We also find that an individual with high leisure demand after retirement reduces consumption … during retirement and increases stockholdings as retirement time approaches …

We develop a retirement model with long-run income risk in which the wealth threshold for retirement is shown to be a …-dimensional retirement problem. The two-dimensional retirement framework has changed quantitative and qualitative features of retirement … strategies as suggested by the literature. Having derived the optimal life-cycle consumption/savings, investment, and retirement …

acquired by investing in an annuity. However, that decision takes funds away from investment alternatives that might grow the … using two variations of the model. The parameters used in this case study correspond to a typical retirement situation. The … case study shows that if the market forecasts are pessimistic, it is optimal to invest in an annuity. The case study …