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Peng Zhou

Zhou Peng Macquarie Research Student
  • Title: Ms
  • Position: PhD Student - Department of Economics

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Student information

  • Load: PhD Student Full Time
  • Principal supervisor: Prof Geoffrey Kingston
  • Associate supervisor: Prof Lance Fisher
  • Date of submission: 05/01/2013
  • Thesis title: Retirement Decisions
  • Abstract: An individual faces two basic problems about retirement: when to retire and how to invest for the retirement. In this study, the retirement timing decision is explained by a utility function defined over consumption, leisure and an opportunity set within a well functioning capital market. Approaching retirement, an individual assesses the deferred option value: either to bring retirement earlier or continues working in order to make more resources available for the post retirement consumption. The wage foregone on the occasion of retirement, the expectation of pension income, accumulated wealth, arduousness of one’s occupation and expected age at death are inputs. I estimate Frisch elasticity and the relative risk aversion on a continuous retirement time model using 8 waves of the Household, Income and Labour Dynamics in Australia (HILDA) Survey. I present graphical evidences documenting the strong motive on smoothing consumption during the pre-retirement period. The research results provide a new argument to Australian retirement behavior study.