Prior research has established that consumption falls significantly at retirement. What is not known is the extent to which this fall is anticipated during the working years. Using data from a new survey, we show that many working households do expect a considerable fall in consumption when they retire. In fact, those who are already retired report significantly smaller falls in consumption than are expected by those who are still working.
|Original language||English (US)|
|Number of pages||10|
|Journal||Review of Economics and Statistics|
|State||Published - May 2007|
ASJC Scopus subject areas
- Social Sciences (miscellaneous)
- Economics and Econometrics