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Retirement and Household Expenditure in Turbulent Times

Author

Listed:
  • Ioannis Laliotis

    (University of Peloponnese
    City University of London
    Global Labor Organization (GLO))

  • Mujaheed Shaikh

    (Hertie School of Governance)

  • Charitini Stavropoulou

    (City University of London)

  • Dimitrios Kourouklis

    (The Office for Health Economics)

Abstract

We examine how expenditure changes at retirement during an institutionally and economically uncertain period when a series of pension reforms and cuts were implemented. Overall, we fail to confirm that consumption declines at retirement using data from Greece (2008–2018). Any estimated declines come from turbulent years when major pension cuts were applied. Expenditure drops at retirement were due to pension income shocks, especially for those who were particularly dependent on pension income. Further checks support the presence of an income shock mechanism for retirees who are relatively more treated during the crisis sub-period. Given an aging population and the ongoing global turbulence, our results offer valuable insights.

Suggested Citation

  • Ioannis Laliotis & Mujaheed Shaikh & Charitini Stavropoulou & Dimitrios Kourouklis, 2023. "Retirement and Household Expenditure in Turbulent Times," Journal of Family and Economic Issues, Springer, vol. 44(4), pages 968-989, December.
    • Handle: RePEc:kap:jfamec:v:44:y:2023:i:4:d:10.1007_s10834-022-09884-7
    DOI: 10.1007/s10834-022-09884-7
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    More about this item

    Keywords

    Retirement; Household expenditure; Crisis; Greece;
    All these keywords.

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

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