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| Main Authors: | , , |
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| Format: | Preprint |
| Published: |
2025
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| Subjects: | |
| Online Access: | https://arxiv.org/abs/2509.12874 |
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| _version_ | 1866915498944364544 |
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| author | Gang, Tae Ung Park, Seyoung Shin, Yong Hyun |
| author_facet | Gang, Tae Ung Park, Seyoung Shin, Yong Hyun |
| contents | This paper investigates the interactions among consumption/savings, investment, and retirement choices with income disaster. We consider low-income people who are exposed to income disaster so that they retire involuntarily when income disaster occurs. The government provides extra income support to low-income retirees who suffer from significant income gaps. We demonstrate that the decision to enter retirement in the event of income disaster depends crucially on the level of income support. In particular, we quantitatively identify a certain income support level below which the optimal decision is to delay retirement. This implies that availability of the government's extra income support can be particularly important for the low-income people to achieve optimal retirement with income disaster. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2509_12874 |
| institution | arXiv |
| publishDate | 2025 |
| record_format | arxiv |
| spellingShingle | Income Disaster, Role of Income Support, and Optimal Retirement Gang, Tae Ung Park, Seyoung Shin, Yong Hyun Portfolio Management E21, G11 This paper investigates the interactions among consumption/savings, investment, and retirement choices with income disaster. We consider low-income people who are exposed to income disaster so that they retire involuntarily when income disaster occurs. The government provides extra income support to low-income retirees who suffer from significant income gaps. We demonstrate that the decision to enter retirement in the event of income disaster depends crucially on the level of income support. In particular, we quantitatively identify a certain income support level below which the optimal decision is to delay retirement. This implies that availability of the government's extra income support can be particularly important for the low-income people to achieve optimal retirement with income disaster. |
| title | Income Disaster, Role of Income Support, and Optimal Retirement |
| topic | Portfolio Management E21, G11 |
| url | https://arxiv.org/abs/2509.12874 |