Retirement Wealth Decumulation Patterns and Drivers in Middle-Income Households: Evidence from Ireland

Abstract

This paper aims to identify patterns and drivers of asset decumulation for retired middle-income households in Ireland. The findings reveal that there is little change observed in housing wealth; however there is an increase in financial assets and a significant drawdown in vehicles and other real assets as households age. The effects of changes in long-term health status on households’ asset holdings are relatively subdued, while marital status shocks result in a reduction of the probability of owning financial assets, vehicles, and other real assets. Overall, this study sheds light on the implications of these findings for retirement planning and policy.