Pacific island countries are exposed to significant risks from natural disasters. As a
disaster relief measure, Fiji allowed pre-retirement pension withdrawls in the wake of
Cyclone Winston in 2016. Motivated by this policy action, we provide a normative
analysis of the use of early pension withdrawals after disasters, by setting up a life-cycle
saving model with myopic households facing large natural disaster shocks. The model
demonstrates the key trade-off between building up sufficient retirement savings and
ensuring the access to savings against natural disaster shocks, and sheds light on welfare
implications of early pension withdrawals.