the trade-off the investor faces as a compromise between ‘living well’ (consumption) and ‘becoming rich’ (terminal wealth). Classical consumption-investment problems consider constant risk aversion in the intertemporal utility functions for consumption besides a personal discount rate or impatience factor, see [@Merton1969] or [@Merton1971]. Within classical models (where constant relative risk aversion (CRRA) utilities are applied), optimal portfolio policies turn out to be constant over the life-cycle, meaning time and wealth independent. According to [@Aase2017] this is ‘against empirical evidence, and against the typical recommendations of portfolio managers’. Furthermore, [@Aase2017] and [@YangFang2014] argue that the tendency of stocks to outperform bonds over long horizons in the past is one of the reasons why people at a younger age are advised to allocate a higher proportion of wealth to equities compared to older people. Evidence for changing risk aversion over the life-cycle is reported in the literature, although there is no broad agreement on its behavior: [@Morin1983], [@Bakshi1994], [@Palsson1996], [@Bellante2004], [@AlAjmi2008], [@Ho2009], [@Yao2011] and [@AlbertDuffy2012] observe increasing risk aversion by age, [@Bellante1986] and [@Wang1997] find risk aversion decreasing by age and [@Riley1992] detect different behavior between the pre- and post-retirement phase. Age-depending risk preferences can economically be motivated by the observed behavior 