Seminar in applied mathematics and statistics

SPEAKER: Felix Henschel (Ulm)

TITLE: Optimal life-time utility: the effect of retirement age

ABSTRACT:
This paper incorporates retirement decision in an optimal consumption and optimal asset allocation problem. We mainly study the question of whether early retirement brings some added value for individuals and of whether there exists an optimal retirement time.

We identify three key factors which crucially influence the optimal retirement time decision: risk aversion parameter, the leisure gains/losses of choosing a retirement age different from the legally stipulated retirement age, and how the individual weighs the consumption during his working life in his entire utility. Furthermore, we find labor income plays an important role in the retirement decision.

Tea and chocolate will be served in room 04.3.15 after the seminar.

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UPCOMING SEMINARS:

March 18, 15.15: Jes Frellsen, Aud. 10

March 24: Persi Diaconis (Harald Bohr Lecture)

June 2: Daniel Stroock (Department Colloquium)