A Theory of Retirement
41 Pages Posted: 29 Nov 2007 Last revised: 30 Sep 2022
Date Written: November 2007
Abstract
We construct a life-cycle model in which retirement occurs at the end of life as a result of declining health. We show that improvements in life expectancy, coupled with a delay in the onset of disability, increases both the optimal consumption level and the proportion of life spent in leisure. The retirement age increases proportionally less than the increase in life expectancy.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Longevity and Life Cycle Savings
By David E. Bloom, David Canning, ...
-
Demographic Change, Social Security Systems, and Savings
By David E. Bloom, David Canning, ...
-
The Effect of Improvements in Health and Longevity on Optimal Retirement and Saving
By David E. Bloom, David Canning, ...
-
The Macroeconomic Dynamics of Demographic Shocks
By Ben J. Heijdra and Jenny E. Ligthart
-
By Ben J. Heijdra and Jochen O. Mierau