Skip to main content
Article thumbnail
Location of Repository

Income Replacement in Retirement: Longitudinal Evidence from Income Tax Records

By Frank T. Denton, Ross Finnie and Byron G. Spencer

Abstract

We analyse a large longitudinal data file to determine who has retired and to assess how successful they are in maintaining their incomes after retirement. Our main conclusions are as follows. First, in the two years immediately after retirement the aftertax income replacement ratios average about two-thirds when calculated across all ages of retirement. Second, the ratios tend to increase with the age of retirement. Third, the ratios increase with years in retirement, at least in the first few years. Finally, income replacement ratios are highest in the lowest income quartile and generally decline as income increases; within each quartile the replacement ratios are higher for those who retired later than for those retired earlier.income replacement, retirement

OAI identifier:

Suggested articles

Citations

  1. (2006). Age, Retirement, and Expenditure Patterns: An Econometric Study of Older Households”,
  2. (2007). Are You Sure You’re Saving Enough for Retirement?”,
  3. (2007). Heuristics and Biases in Retirement Savings
  4. (2008). Income Security and Stability During Retirement in Canada,”
  5. (1998). Income Transition Upon Retirement,” Perspectives on Labour and Income, Winter, pp 18-23. Statistics Canada, catalogue no
  6. (1998). Is There a retirement-Savings
  7. (2009). Patterns of Retirement as Reflected in Income Tax Records for Older Workers,”
  8. (2008). The Adequacy of Retirement Savings: Subjective Survey Reports by Retired Canadians,” Canadian Public Policy, XXXIV Supplement,
  9. (2008). The effects of age and income on retirement decisions: a comparative analysis between Italy and the UK,” Pensions, Vol 13,
  10. (2003). Trends and Projections in Income Replacement during Retirement,”
  11. (2001). What Accounts for the Variation in Retirement Wealth among U.S.
  12. (2009). What Is Retirement? A Review and Assessment of Alternative Concepts and Measures”,
  13. (2005). Why Does Consumption Fall at Retirement? Evidence from Germany”,

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.