Can the retirement-consumption puzzle be resolved? Evidence from the British Household Panel Survey
نویسنده
چکیده
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
منابع مشابه
In Economics and Social Sciences Working Papers Series Consumption, Retirement and Life-cycle Prices: Evidence from Spain Consumption, Retirement and Life-cycle Prices: Evidence from Spain *
Evidence from several countries reveals a substantial drop in household consumption around retirement age that some researchers believe is difficult to reconcile with standard life-cycle models. Using detailed expenditure data from a Spanish panel survey, we find no evidence of a consumption-retirement puzzle in Spain for the period of 1985–2004. However, we find a drop in food expenditure at h...
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