Abstract

http://ssrn.com/abstract=1810479
 
 

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Financial Literacy and Retirement Planning in Germany


Tabea Bucher-Koenen


Max Planck Society for the Advancement of the Sciences - Munich Center for the Economics of Aging (MEA)

Annamaria Lusardi


The George Washington University School of Business; National Bureau of Economic Research (NBER)

January 31, 2011

Netspar Discussion Paper No. 01/2011-020

Abstract:     
We examine financial literacy in Germany using data from the SAVE survey. We find that knowledge of basic financial concepts is lacking among women, the less educated, and those living in East Germany. In particular, those with low education and low income in East Germany have little financial literacy compared to their West German counterparts. Interestingly, there is no gender disparity in financial knowledge in the East. In order to investigate the nexus of causality between financial literacy and retirement planning we develop an IV strategy by making use of regional variation in the financial knowledge of peers. We find a positive impact of financial knowledge on retirement planning.

Number of Pages in PDF File: 27

Keywords: financial sophistication, retirement planning, life-cycle savings, financial education, East Germany

JEL Classification: D91

working papers series





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Date posted: April 18, 2011  

Suggested Citation

Bucher-Koenen, Tabea and Lusardi, Annamaria, Financial Literacy and Retirement Planning in Germany (January 31, 2011). Netspar Discussion Paper No. 01/2011-020. Available at SSRN: http://ssrn.com/abstract=1810479 or http://dx.doi.org/10.2139/ssrn.1810479

Contact Information

Tabea Bucher-Koenen (Contact Author)
Max Planck Society for the Advancement of the Sciences - Munich Center for the Economics of Aging (MEA) ( email )
Amalienstrasse 33
Munich, 80799
Germany
HOME PAGE: http://mea.mpisoc.mpg.de/
Annamaria Lusardi
The George Washington University School of Business ( email )
School of Business and Public Management
Washington, DC 20052
United States
HOME PAGE: http://business.gwu.edu/faculty/annamaria_lusardi.cfm
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
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