This paper uses high-quality Dutch transaction data to estimate the causal effect of retirement on households’ financial outcomes. We use the discontinuity imposed by the
Statutory Retirement Age (SRA) and the increase in the SRA to measure causal effects. Monthly data allow us to estimate short-run effects using RD and DiD designs. Our
findings show a positive spike in net flow balance at retirement, which financially constrained households use to pay off debts. Debts decline especially for low income, blue
collar workers, and social insurance recipients. In addition, we see a gradual increase in the end of month balance over time, that is not directly caused by retirement itself.