 Evidence of behavioural life-cycle features in spending patterns after retirementJohan Bonekamp and Arthur van Soest The Journal of the Economics of Ageing, 2022, vol. 23, issue C Abstract: Using data on stated preferences on the decumulation of pension wealth after retirement, we estimate a stylized structural life-cycle model incorporating several behavioural features. In the stated choice questions, pension income is in the form of a constant annuity, a “high-low” annuity that falls from a higher to a lower level five years into retirement, or a “low-high” annuity that does the reverse. This creates variation in liquid and illiquid wealth. Respondents are asked to choose among several expenditure patterns in the first ten years after retirement. We find that the respondents do not behave in the way the standard life-cycle model would predict. They respond to the variation in how they receive their income have a tendency to follow the rule of thumb of going for the middle choice alternative. Moreover, they value illiquid wealth much less than liquid wealth at the ten years time horizon. Keywords: Pension wealth; Consumption smoothing; Framing; Personal finance (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:joecag:v:23:y:2022:i:c:s2212828x22000408 DOI: 10.1016/j.jeoa.2022.100408 Access Statistics for this article The Journal of the Economics of Ageing is currently edited by D.E. Bloom, A. Sousa-Poza and U. Sunde More articles in The Journal of the Economics of Ageing from Elsevier |
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