Year: 2017
Author: Leinert, Johannes
Vierteljahrshefte zur Wirtschaftsforschung, Vol. 86 (2017), Iss. 4 : pp. 83–101
Abstract
This contribution examines the influence of financial literacy on old-age provision. To start with, an indirect effect is being described in a theoretical analysis. Accordingly, a lack of financial literacy encourages an aversion against dealing with financial matters. This causes „psychological costs“ of retirement planning and choosing a specific savings scheme. If the individual excessively weights the present moment against future moments (hyperbolic preferences), these costs lead to procrastination of retirement planning and old-age provision. Empirical evidence based on the Bertelsmann Stiftung Vorsorgestudien and the SAVE data supports the presumed correlations. However, a causal interpretation seems plausible and very likely, but cannot be assumed with absolute certainty. To resolve remaining ambiguities, additional research and an improved data basis are required.
Journal Article Details
Publisher Name: Global Science Press
Language: German
DOI: https://doi.org/10.3790/vjh.86.4.83
Vierteljahrshefte zur Wirtschaftsforschung, Vol. 86 (2017), Iss. 4 : pp. 83–101
Published online: 2017-12
AMS Subject Headings: Duncker & Humblot, Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 19
Keywords: Old age provision financial literacy hyperbolic discounting procrastination retirement planning retirement saving D91 E21
Author Details
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Financial Literacy and Private Old-Age Provision in Germany – Evidence from SAVE 2008
Bucher-Koenen, Tabea
(2009)
https://doi.org/10.2139/ssrn.1534664 [Citations: 9]