Motivation wadb This holds true also around retirement age: any change in the marginal utility of consumption should be uncorrelated with planned retirement behaviour Recent micro evidence has emphasized that there is a one-off drop in consumption at the time of retirement that might be hard to reconcile with life-time optimizing behaviour(see for example Banks et al 1998. Bernheim et al. 2001 This is known as the retirement consumption puzzleMotivation • This holds true also around retirement age: any change in the marginal utility of consumption should be uncorrelated with planned retirement behaviour. • Recent micro evidence has emphasized that there is a one-off drop in consumption at the time of retirement that might be hard to reconcile with life-time optimizing behaviour (see for example Banks et al., 1998, Bernheim et al., 2001). • This is known as the retirement consumption puzzle