Retirement, Housing Mobility, Downsizing and Neighbourhood Quality – A Causal Investigation

This paper provides the first causal evidence on impact of retirement housing choices. Our empirical strategy exploits discontinuity in eligibility ages for state pension as an instrument endogenous decision and controls time-invariant individual characteristics. The results show that leads to a statistically significant sizable increase probability making residential move or likelihood becoming outright homeowners. We also find individuals downsize both physically financially tend better neighbourhoods closer coast upon retirement. additionally discover some adjustments take place up 6 years before Moreover, our reveal heterogeneity by gender, marital status, education, tenue, income wealth. Within couple households, mobility choices are primarily influenced wife’s while downsizing decisions only affected husband’s suggest failing address endogeneity often under-states such arrangements.