Consequences of retirement on income. The case of the Netherlands
This thesis intends to describe the financial consequences of retirement on income at the household level. Moreover, the emphasis is on discovering the factors that lead to variation in the magnitude of the retirement effect on income for individuals and households with different characteristics. Panel data from the Income Panel Survey (IPO) provided by Statistics Netherlands was exploited toconduct analysis of retirement effects on income. Data obtained from the IPO contains tax records and demographic characteristics of individuals who were followed during the period 2000-2009.Descriptive analysis provided evidence of increasing inequality among individuals who retired during the period 2000-2009 in comparison to the non-retired adults and workers. The effect of retirement seemed to be conditional on age at retirement based on descriptive analysis which was derived from absolute mean vales. Decreases in income were most considerable for individuals in the lowest percentile of the income distribution. Income composition of retirees has remained stable through the panel years.Empirical analysis provided an indication of negative standardized household income for individuals whose income source was mainly labour earnings. For those individuals who were dependent ondisability benefit or unemployment benefits, income decreased at a lower rate compared to wage workers. However, income after retirement increases for individuals who relied on social security transfers. Households with two earners faced lower income changes relative to households with one earner. When making distinction between principal bread winners and other members of the household, there was no significant difference between retiring of the principal bread winner and the other member.There was no significant difference in after-retirement income change between men and women.Post retirement income changes however, were conditional on marital status. Unmarried retirees experienced larger standardized household income declines, compared to married individuals.