Author(s)

James A. Feigenbaum¹, T. Scott Findley^1,2

¹Department of Economics and Finance, Utah State University, Logan, USA.
²Netspar, Tilburg, The Netherlands.

We study the active retirement choice in a simple three-period life-cycle setting and demonstrate that time-inconsistent delayed retirement becomes a theoretical possibility. This helps to align theory with the intuition that delaying the date of retirement can be a reasonable response to spending too much and saving too little for retirement.

Quasi-Hyperbolic Discounting, Retirement, Life-Cycle Consumption and Saving

Feigenbaum, J. and Findley, T. (2015) Quasi-Hyperbolic Discounting and Delayed Retirement. Theoretical Economics Letters, 5, 325-331. doi: 10.4236/tel.2015.52038.