WEALTH, CONSUMPTION, AND SAVINGS PATTERNS IN RETIREMENT: A CHALLENGE TO THE LIFE-CYCLE HYPOTHESIS
PATRÍCIA KRUPOVÁ
https://doi.org/10.53465/ER.2644-7185.2024.3.176-195
Abstract: This paper investigates the wealth, consumption, and savings behavior of elderly individuals through the lens of the life-cycle hypothesis. Using data from Survey of Health, Ageing and Retirement, we employ Student's t-test to test differences between pre-retirement and retirement age groups. The findings shed light on the extent to which elderly individuals adhere to the life-cycle hypothesis and provide insights into the economic behavior of this demographic group. Our findings align with previous studies indicating that the life-cycle theory inadequately captures the dynamics of wealth, consumption, and savings during retirement age. According to our results, there is a consistent decrease in all examined variables with advancing age, with the lowest yet non-zero values observed among the oldest individuals.
Keywords: Life-cycle Hypothesis, Retirement, Wealth, Consumption, Savings
JEL Classification: D12, G51, J14
Fulltext: PDF
Online publication date: 25 September 2024
To cite this article (APA style):
Krupová, P. (2024). Wealth, Consumption, And Saving Patterns in Retirement: A Challenge to the Life-Cycle Hypothesis. Economic Review, 53(3), 176 ─ 195.
https://doi.org/10.53465/ER.2644-7185.2024.3.176-195
Publisher: University of Economics in Bratislava
ISSN 2644-7185 (online)
License:
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
