The effect of retirement on economic welfare, indirectly measured by income, has not been studied widely, namely due to the lack of longitudinal data. A large literature exists about poverty in old age, mainly based on cross sectional survey data, but usually those studies are not able to study...

This article discusses whether transition to retirement may be associated with a greater probability of becoming poor. Having recourse to the European Community Household Panel (ECHP) for Portugal, the analysis is focused on a sample of individuals who retired in the period 1994-2001....