Disparities in Financial Literacy, Pension Planning, and Saving Behavior

57 Pages Posted: 31 Oct 2022

See all articles by Tabea Bucher-Koenen

Tabea Bucher-Koenen

Max Planck Society for the Advancement of the Sciences - Munich Center for the Economics of Aging (MEA); ZEW – Leibniz Centre for European Economic Research

Andreas Hackethal

Goethe University Frankfurt - Faculty of Economics and Business Administration; Leibniz Institute for Financial Research SAFE

Johannes Kasinger

Goethe University Frankfurt; Leibniz Institute for Financial Research SAFE

Christine Laudenbach

SAFE and Goethe University

Date Written: September 2, 2022

Abstract

Financial literacy affects wealth accumulation, and pension planning plays a key role in this relationship. In a large field experiment, we employ a digital pension aggregation tool to confront a treatment group with a simplified overview of their current pension claims across all pillars of the pension system. We combine survey and administrative bank data to measure the effects on actual saving behavior. Access to the tool decreases pension uncertainty for treated individuals. Average savings increase - especially for the financially less literate. We conclude that simplification of pension information can potentially reduce disparities in pension planning and savings behavior.

Keywords: saving behavior, retirement planning, digital planning tool

JEL Classification: D14, G11, G51, G53

Suggested Citation

Bucher-Koenen, Tabea and Bucher-Koenen, Tabea and Hackethal, Andreas and Kasinger, Johannes and Laudenbach, Christine, Disparities in Financial Literacy, Pension Planning, and Saving Behavior (September 2, 2022). SAFE Working Paper No. 362, 2022, Available at SSRN: https://ssrn.com/abstract=4260867 or http://dx.doi.org/10.2139/ssrn.4260867

Tabea Bucher-Koenen

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/

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Andreas Hackethal (Contact Author)

Goethe University Frankfurt - Faculty of Economics and Business Administration ( email )

Theodor-W.-Adorno Platz 3
Frankfurt am Main, 60323
Germany

Leibniz Institute for Financial Research SAFE ( email )

(http://www.safe-frankfurt.de)
Theodor-W.-Adorno-Platz 3
Frankfurt am Main, 60323
Germany

Johannes Kasinger

Goethe University Frankfurt ( email )

Grüneburgplatz 1
Frankfurt am Main, 60323
Germany

Leibniz Institute for Financial Research SAFE ( email )

(http://www.safe-frankfurt.de)
Theodor-W.-Adorno-Platz 3
Frankfurt am Main, 60323
Germany

Christine Laudenbach

SAFE and Goethe University ( email )

Theodor-W.-Adorno-Platz 3
Frankfurt, 60323
Germany

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