Financial Literacy and Pension Planning – A Comparative Study for Austria and Switzerland

39 Pages Posted: 5 Jan 2017

See all articles by Tatjana Aubram

Tatjana Aubram

St. Pölten University of Applied Sciences

Monika Kovarova-Simecek

St. Pölten University of Applied Sciences, Department of Media & Economics

Gabrielle Wanzenried

Lucerne University of Applied Sciences and Arts, Institute of Financial Services Zug IFZ

Date Written: December 29, 2016

Abstract

This paper analyzes the impacts of financial literacy on pension planning in Austria and Switzerland. Based on survey data of 442 individuals, we explain the pension planning behavior by the level of financial literacy as well as other relevant person- and country-specific characteristics considering in particular the differences between the Austrian and the Swiss population in terms of financial literacy, contextual and socio-demographic aspects. Our results show that higher financial literacy has a clear positive impact on the level of pension planning, whereas the Swiss population is demonstrated to be more financially literate and thus better prepared for the retirement than Austrians. The same holds for elder people compared to the younger persons and men compared to women in our sample. Overall, our results provide some potentially interesting insights on the impacts of institutional differences and financial literacy on pension planning and appear to be highly relevant in light of demographic and system changes as well as the micro- and macro-economic relevance of pension savings in both countries.

Keywords: Financial Literacy, Pension Planning, Investment Behavior

JEL Classification: I22, J26, D14, P46, P52, C25

Suggested Citation

Aubram, Tatjana and Kovarova-Simecek, Monika and Wanzenried, Gabrielle, Financial Literacy and Pension Planning – A Comparative Study for Austria and Switzerland (December 29, 2016). Available at SSRN: https://ssrn.com/abstract=2892726 or http://dx.doi.org/10.2139/ssrn.2892726

Tatjana Aubram

St. Pölten University of Applied Sciences ( email )

Matthias Corvinus-Straße 15
St. Pölten, 3100
Austria

Monika Kovarova-Simecek (Contact Author)

St. Pölten University of Applied Sciences, Department of Media & Economics ( email )

Matthias Corvinus-Straße 15
St. Pölten, 3100
Austria
+43 699 19015549 (Phone)

HOME PAGE: http://www.fhstp.ac.at

Gabrielle Wanzenried

Lucerne University of Applied Sciences and Arts, Institute of Financial Services Zug IFZ ( email )

IFZ Institute of Financial Services Zug
P.O. Box 4332
Zug, CH-6304
Switzerland
+4141757 67 37 (Phone)
+4141757 67 00 (Fax)

HOME PAGE: http://www.ifz.ch

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