We examine within a life-cycle model the simultaneous choice of health care and retirement
(together with consumption). Health tends to have an impact on retirement through
morbidity, determining earnings and the disutility of work, and through longevity, determining
the need to accumulate retirement wealth. Conversely, the age of retirement drives the
demand for health care through the value of survival and the value of morbidity reductions.
We characterise the optimal relationship between health expenditure and retirement and …

reposiTUm: Optimal Choice of Health and Retirement in a Life-Cycle Model … Optimal
Choice of Health and Retirement in a Life-Cycle Model …