Luxury bequests impart systematic effects of age to an investor's optimal allocation: the expected percentage allocation to equities rises throughout retirement. When bequests are luxuries the marginal utility of bequests declines more slowly than the marginal utility of consumption. This is...

In this paper I derive semi-analytical solutions to the problem of finding the optimal consumption and asset allocation decisions post-retirement. I assume the preference of retirees follow HARA type of utility function, with joint consideration of a bequest motive, housing and publicly provided...

This paper develops a life-cycle utility model of the preferences of retirees, with joint consideration of bequest motive, housing decision and public pension. The model parameters are calibrated to the ABS data of Household Expenditure Survey and Survey of Income and Housing. The calibrated...