Title :
Modeling and Analysis of the Combined Problem of Annuity Planning and Consumption-Investment Selections
Author_Institution :
Sch. of Finance, Zhongnan Univ. of Econ. & Law, Wuhan, China
Abstract :
By simultaneously considering the financial risk and longevity risk, this paper develops a discrete multi-period framework that integrates annuity purchase decisions with consumption-investment selections in retirement planning, so as to discuss the optimal allocation of wealth in consumption, annuity and traditional assets. Computational results are provided to demonstrate the construction of consumption and investment selections with longevity protection, as well as analyze the effect on decisions of a plannerpsilas social-economic background and behavioral preferences.
Keywords :
decision making; decision theory; econometrics; financial management; investment; planning; risk management; termination of employment; annuity planning problem; annuity purchase decision making; behavioral preferences; consumption-investment selection problem; discrete multiperiod framework; financial risk; longevity protection; longevity risk; optimal wealth allocation; retirement planning; social-economic background; traditional asset; Asset management; Costs; Finance; Financial management; Investments; Pensions; Protection; Retirement; Risk analysis; Supply and demand; Annuitization; Consumption-investment selections; Longevity risk; Risk aversion;
Conference_Titel :
Business Intelligence and Financial Engineering, 2009. BIFE '09. International Conference on
Conference_Location :
Beijing
Print_ISBN :
978-0-7695-3705-4
DOI :
10.1109/BIFE.2009.66
