PeRCent research on consumption at retirement
06/12/2018
Research by PeRCent researcher Arna Olafsson described in VoxEU
Below is an abstract of the article:
A large literature analyses whether individuals save adequately for retirement and plan properly. This column uses a detailed panel of individual spending, income, account balances, and credit limits from a personal finance management software provider to investigate how expenditures, liquid savings, and consumer debt change around retirement. It finds that, upon retirement, individuals reduce their spending in both work-related and leisure categories. In addition, individuals reduce their consumer debt and increase their liquid savings, which is inconsistent with existing models of insufficient planning.
The page was last edited by: Department of Finance // 10/08/2019