Celidoni M., Weber G. (2020).
Do you need less money in retirement?. Economics Letters. Accepted for publication.
The literature has documented a one-off drop in consumption at retirement in Italy. We show that respondents’ subjective evaluation of the minimum amount of money needed “to live comfortably but not in luxury” drops at retirement as well. This finding supports the idea that, even if expenditure falls at retirement, this may have the same effect on money needed, hence no effect on the marginal utility of consumption.