EconPapers    
Economics at your fingertips  
 

Retirement saving and attitude towards financial intermediaries: Evidence for Germany

Kathrin Dummann

No 99, Thuenen-Series of Applied Economic Theory from University of Rostock, Institute of Economics

Abstract: People often disregard the need for individual savings for old-age although a decreasing rate of birth and an increasing life expectancy make it necessary to save additional money for retirement by using private or occupational pensions. Due to a lack of financial literacy and a variety of products it is important that people consult financial intermediaries like banks and insurance companies which support their savings plans. We apply the behavioral life-cycle hypothesis to explain whether people of different socioeconomic attributes contact diverse financial intermediaries and which motives promote this consultancy. To answer those and other questions on differences in consulting behavior of financial intermediaries Probit regressions are used. We find that income, low risk aversion and the presence of banks in the local surrounding have a large impact on oldage savings behavior. Our results differ across intermediary groups. They have important policy implications as better financial literacy and enhanced consulting activities may cause less old-age poverty and more trust in the financial system.

Keywords: life-cycle hypothesis; pension savings; financial intermediaries; financial literacy (search for similar items in EconPapers)
JEL-codes: D14 D82 G10 G21 (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/39753/1/610660780.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:roswps:99

Access Statistics for this paper

More papers in Thuenen-Series of Applied Economic Theory from University of Rostock, Institute of Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().

 
Page updated 2023-11-08
Handle: RePEc:zbw:roswps:99