Retirement duration maximization with survival time expectations

Linden, Mikael (2022): Retirement duration maximization with survival time expectations.

Abstract

Paper proposes a model of retirement duration maximization based on retiree’s ex-ante intended retirement age and subjective survival time estimate. The optimum result needs that retirement age is an increasing convex function of survival time estimate supporting postponed retirement age with longer intended retirement duration. As a result, the average actual observed retirement duration is less than the intended duration. The result is valid irrespectively of biasedness of subjective survival estimates

• Item Type: MPRA Paper
• Language: English
• Keywords: Optimal retirement age, intended retirement duration, subjective survival time estimates, convex function
• Subjects: C - Mathematical and Quantitative Methods > C4 - Econometric and Statistical Methods: Special Topics > C41 - Duration Analysis ; Optimal Timing Strategies; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty; J - Labor and Demographic Economics > J1 - Demographic Economics > J14 - Economics of the Elderly ; Economics of the Handicapped ; Non-Labor Market Discrimination

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