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Bifurcation in optimal retirement
Bushra Shehnam Ashraf, Thomas S. Salisbury
https://arxiv.org/abs/2506.02155 https://arxiv.org/pdf/2…

Bifurcation in optimal retirement
We study optimal consumption and retirement using a Cobb-Douglas utility and a simple model in which an interesting bifurcation arises. With high wealth, individuals plan to retire. With low wealth they plan to never retire. At a critical level of initial wealth they may choose to defer this decision, leading to a continuum of wealth trajectories with identical utilities.