We revisit the alleged retirement consumption puzzle. According to the life-cycle theory, foreseeable income reductions …-cycle theory. For retirees we also find significant effects of the income reduction at retirement on housing. However, the effects …

bonus is defined as the discounted value of the difference between a person's actual income and his or her counterfactual … real income stream forecast for a hypothetical continuation of economic life in a static GDR. The two main issues tackled … centralized to a market economy and the estimation of plausible counterfactual income streams. Our central result is that 19 …