Optimal Withdrawal Rate Under Longevity Risks: A Criterion for Life Planning after Retirement
13 Pages Posted: 3 Jan 2016 Last revised: 4 Jan 2016
Date Written: January 3, 2016
We discuss the optimal withdrawal rate in the existence of longevity risks. The longevity is realized as the factor of conditional survival rate in the model. We solve a optimal consumption problem under longevity risks, while managing the assets. The objective of the current work is giving a rational criterion that can be practically used in planning the life after retirement.
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