b'CHAPTER 3 | ECONOMIC PREPARATION FOR RETIREMENTFIGURE 3-3Percent with DB or DC pension, and any pension coverage: 1992-2014Source: HRS 1992-2014.35%30%25%20%15%10%5%0%1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014Type of pension: Dened benet (DB) Dened contribution (DC) Any coverageshowed a drop in spending at retirement, even forwhether or not a puzzle even exists. HurdA potential concern for policy makers is those who retired when they planned, which wasand Rohwedder (2004) examine actualthat a steep drop in spending at retirement at odds with the theory and came to be known aschanges in spending at retirement and tocould reflect an underlying lack ofthe retirement-consumption puzzle. A potentialwhat extent these changes were anticipated.economic preparation.concern for policy makers is that a steep drop inIn the group not yet retired, about 69% spending at retirement could reflect an under- say they expect to decrease spending with lying lack of economic preparation. In the past,retirement, while 4% expect to increase spending.There are considerable increases and decreases research on this topic was hindered in part by aFifty-two percent of retirees report that theyin spending across some households, however lack of quality longitudinal data on consumptionreduced spending when they retired, while about(Hurd and Rohwedder 2008). Households with less expenditure and time use in retirement linked to12% say they increased spending.retirement wealth are more likely to experience relevant financial and health information.Using longitudinal data on spending, Hurddeclines in spending at retirement and are also The CAMS questionnaire asks about spend- and Rohwedder (2005) follow the same peoplemore likely to retire early because of poor health. ing, how people spend their time in retirement,to see if the changes they anticipated were theIn follow-up work that uses four waves of CAMS and how spending changes at the time of retire- changes that actually occurred. Of those whodata (2001 to 2007), Hurd and Rohwedder (2013)ment (for those who are retired). For those whoretired between waves, 59% anticipated a declineconfirm earlier findings of relatively small drops are not yet retired, it asks participants how theyin spending, but only 46% recalled their spendingin spending at retirement on average, which could expect their spending to change when they retire.declining after they retired. There is no evidencebe accounted for by lower work-related expenses Researchers use these data to shed light onof unanticipated declines in spending at retire- or from having more time to cook at home rather the retirement-consumption puzzle to determinement and no change in spending at the median.than eating out. However, those in the lowest 61'