Sarah Smith
This paper uses data from the British Household Panel Survey (BHPS) to shed further light on the fall in consumption at retirement (the "retirement-consumption puzzle"). Comparing food spending of men retiring involuntarily early (through ill health or redundancy) with spending of men 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.
Economic Journal, March 2006, 116, C130-C148Note: some of the documents on this page are in PDF format. In order to view a PDF you will need Adobe Acrobat Reader
