Australian retirees' preferences between consumption, government pension, bequest and housing

Purpose: Develop and calibrate a utility model with realistic assumptions to model the financial behaviours of Australian retirees Research limitations/implications: This research attempts to model the financial behaviour of Australians in average. However the assumption that a single utility function with a particular set of parameters is applicable for everyone, suffers from the lack of variability. Practical and Social implications: Knowing the financial preference of Australian retirees helps with financial planning in practice. We can model people’s reaction to a certain change in public policy, if we assume the change in modelled behaviour will be similar to the change in their actual behaviour.