Can the retirement-consumption puzzle be resolved? Evidence from the British Household Panel Survey
Year: 2005
Type: report
Abstract: This paper uses data from the British Household Panel Survey to shed further light on the fall in consumption at retirement (the “retirement-consumption puzzle”). Comparing food spending for men retiring involuntarily early (through ill health or redundancy) with spending for those who retire voluntarily, it finds a significant fall in spending only for those who retire involuntarily. This is consistent with the observed fall in spending being linked to a negative wealth shock for some retirees. Evidence on psychological and financial well-being also indicates that the retirement experience of involuntary retirees is very different to that of voluntary retirees. JEL classification: D91, J26 Keywords: Retirement; Life-cycle model of consumption; well-being
Author: Sarah Smith
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2156936320