On retirement time decision making

Department of Mathematical Sciences

Research output: Contribution to journal › Journal article › Research › peer-review

Standard

On retirement time decision making. / Chen, An; Hentschel, Felix; Steffensen, Mogens.

In: Insurance: Mathematics and Economics, Vol. 100, 2021, p. 107-129.

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Chen, A, Hentschel, F & Steffensen, M 2021, 'On retirement time decision making', Insurance: Mathematics and Economics, vol. 100, pp. 107-129. https://doi.org/10.1016/j.insmatheco.2021.05.002

APA

Chen, A., Hentschel, F., & Steffensen, M. (2021). On retirement time decision making. Insurance: Mathematics and Economics, 100, 107-129. https://doi.org/10.1016/j.insmatheco.2021.05.002

Vancouver

Chen A, Hentschel F, Steffensen M. On retirement time decision making. Insurance: Mathematics and Economics. 2021;100:107-129. https://doi.org/10.1016/j.insmatheco.2021.05.002

Author

Chen, An ; Hentschel, Felix ; Steffensen, Mogens. / On retirement time decision making. In: Insurance: Mathematics and Economics. 2021 ; Vol. 100. pp. 107-129.

Bibtex

@article{73e2ed888ee648ceb6ad9515de757bb3,

title = "On retirement time decision making",

abstract = "Optimal timing of retirement is an important part of retirement planning. We consider three types of individuals distinguished by the way they use information when deciding the retirement time. For each of these types, we analyze two elements influencing the decision, the market model and the mortality model, and we study the impact of working with one combination or another. Based on analytical solutions to almost all the combinations, we reach a conclusion, even relevant for practical advice: Young individuals must prioritize the market model over the mortality model while for older individuals, it is the other way around.",

keywords = "Mortality model, Optimal consumption and investment, Precommitted, naive and sophisticated individuals, Stochastic market model, Utility optimization",

author = "An Chen and Felix Hentschel and Mogens Steffensen",

note = "Publisher Copyright: {\textcopyright} 2021 Elsevier B.V.",

year = "2021",

doi = "10.1016/j.insmatheco.2021.05.002",

language = "English",

volume = "100",

pages = "107--129",

journal = "Insurance: Mathematics and Economics",

issn = "0167-6687",

publisher = "Elsevier",

}

RIS

TY - JOUR

T1 - On retirement time decision making

AU - Chen, An

AU - Hentschel, Felix

AU - Steffensen, Mogens

PY - 2021

Y1 - 2021

N2 - Optimal timing of retirement is an important part of retirement planning. We consider three types of individuals distinguished by the way they use information when deciding the retirement time. For each of these types, we analyze two elements influencing the decision, the market model and the mortality model, and we study the impact of working with one combination or another. Based on analytical solutions to almost all the combinations, we reach a conclusion, even relevant for practical advice: Young individuals must prioritize the market model over the mortality model while for older individuals, it is the other way around.

AB - Optimal timing of retirement is an important part of retirement planning. We consider three types of individuals distinguished by the way they use information when deciding the retirement time. For each of these types, we analyze two elements influencing the decision, the market model and the mortality model, and we study the impact of working with one combination or another. Based on analytical solutions to almost all the combinations, we reach a conclusion, even relevant for practical advice: Young individuals must prioritize the market model over the mortality model while for older individuals, it is the other way around.

KW - Mortality model

KW - Optimal consumption and investment

KW - Precommitted, naive and sophisticated individuals

KW - Stochastic market model

KW - Utility optimization

U2 - 10.1016/j.insmatheco.2021.05.002

DO - 10.1016/j.insmatheco.2021.05.002

M3 - Journal article

AN - SCOPUS:85106381721

VL - 100

SP - 107

EP - 129

JO - Insurance: Mathematics and Economics

JF - Insurance: Mathematics and Economics

SN - 0167-6687

ER -

ID: 276335745