Abstract

This research examines whether individuals should utilise their individual pension savings for housing. The primary challenge is that such a policy could result in a liquidity shock, manifesting as housing inflation, and potentially benefiting only early homebuyers (e.g. high-income earners) while reducing accessibility for others. The first part presents a numerical analysis calibrated to Australian data, motivated by recent government proposals. This analysis identifies key factors influencing the outcomes on accessibility and retirement financial security. The second part investigates the problem
analytically, modelling households’ purchases as a system of first-passage time with price feedback from aggregate demand.

About the speaker

"Hamza is a senior lecturer in Actuarial Science at the University of Melbourne since August 2024. His research interests include risk management and measurement, pricing, and dependence modelling. He is interested in studying issues related to insurance and pension, as well as reconciling consumer welfare and providers' financial sustainability or solvency.Hamza holds a Bachelors degree in Mathematics from Universite Pierre et Marie Currie (Paris, France) and a Masters degree in Actuarial Science from Universite Catholique de Louvain (Louvain-la-Neuve, Belgium). He completed a PhD in Actuarial Science at KU Leuven (Leuven, Belgium), and joined Monash University in 2020 as a Lecturer."