Year: 2017
Type: dissertation
Abstract: Individuals face a number of risks when entering retirement, such as unknown \nlife expectancy, variable medical expenses, and uncertain financial market returns. \nUnderstanding these risks in advance will allow retirees to pursue appropriate risk \nmanagement strategies to reduce the likelihood of experiencing negative events that \ncould jeopardize the retirement period. Unfortunately, many retirees either do not \nunderstand the risks that they face, or are ill-prepared to handle these risks when they \ninevitably arise. \n In this dissertation, I provide new insights into the dynamic relationship between \nconsumer knowledge, risk exposure, and insurance coverage. The first essay provides \nevidence that many elderly individuals do not understand the risks associated with \nunknown late-in-life medical expenses, such as nursing care. When educated, many \nretirees indicate an increased willingness to purchase a suitable insurance policy as a \nhedge against the risk. The second essay finds that a small percentage of retirees are \ninsured against multiple retirement risks, and that this behavior is associated with \nincreased financial wealth and successful retirement outcomes. Although insurance can \nprovide a hedge against a multitude of financial risks, the third essay suggests that life \nsatisfaction in retirement is about more than material wealth.
Author: Jacob Lumby
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2797566026