Essays on post-retirement financial planning and pension policy modelling in Australia

by Jie Ding

Institution: Macquarie University; ©2013
Year: 2014
Keywords: Old age pensions  – Australia  – Mathematical models; Old age pensions  – Government policy  – Australia; Retirement income  – Australia  – Mathematical models; Pension trusts  – Australia  – Mathematical models; Individual retirement accounts  – Australia; population; aging; retirement; retirement income systems
Record ID: 1059632
Full text PDF: http://hdl.handle.net/1959.14/341794


Thesis by publication. Bibliography: pages 290-296. Chapter 1. Introduction  – Chapter 2. Dynamic asset allocation when bequests are luxury goods  – Chapter 3. Australian retirees' chocies between consumption, age pension, bequest and housing  – Chapter 4. Modelling post-retirement finances in the presence of a bequest motive, housing and public pension  – Chapter 5. Superannuation policies and economic responses : how much age pension?  – Chapter 6. Summary and conclusions. This thesis presents long-term projections of the cost of public pensions in Australia, with retirees' behaviours modelled with the developed utility model. The thesis assumes that retirees make financial decisions to maximise their lifetime utitlities, and their consumption and asset allocation react to policy changes. The thesis finds that the future cost of the Age Pension to be about 13 percent higher than estimated by the Australian Treasury in 2010's Intergenerational Report. As future cohorts retire with more savings, they can allocate more money into owner-occupied properties while preparing for retirement and draw down their savings faster, to optimise their Age Pension entitlements. v, 296 pages illustrations (some colour), graphs, charts 30 cm