Theoretical studies suggest that unexpected changes in future mortality and survival probabilities (stochastic … mortality) are important determinants of individuals' decisions about consumption, saving, asset allocation, and retirement … timing. Using data on subjective survival expectations elicited in the Survey of Health, Ageing and Retirement in Europe …

may either choose to receive annuity payouts, calculated based on a mortality table agreed to at contract inception, or … receive the accumulated capital as a lump sum. Considering stochastic mortality improvements, such an option could be of … substantial value. Whenever mortality improves less than originally expected, the policyholder will choose the lump sum and buy an …

the capital accumulated. Considering stochastic mortality improvements, the lump-sum option could be of potential value … for the policyholder. Whenever mortality improves less than expected at contract inception, the policyholder will choose … stochastic mortality. Our results are relevant for individual retirement planning, pension system design, and insurance pricing …

may either choose to receive annuity payouts, calculated based on a mortality table agreed to at contract inception, or … receive the accumulated capital as a lump sum. Considering stochastic mortality improvements, such an option could be of … substantial value. Whenever mortality improves less than originally expected, the policyholder will choose the lump sum and buy an …

in which (i.) the force of mortality obeys a diffusion process as opposed to being deterministic, and (ii.) a consumer … can adapt their consumption strategy to new information about their mortality rate (a.k.a. health status) as it becomes … available. We compare and contrast the optimal consumption paths to investigate the impact of mortality rate uncertainty vs …