Individual Financial Planning for Retirement

Transcription

1 Contributions to Economics Individual Financial Planning for Retirement Empirical Insights from the Affluent Segment in Germany Bearbeitet von Nicole Brunhart 1. Auflage Buch. xx, 443 S. Hardcover ISBN Format (B x L): 15,5 x 23,5 cm Gewicht: 853 g Weitere Fachgebiete > Ethnologie, Volkskunde, Soziologie > soziale Gruppen; Altersgruppen > Alterssoziologie schnell und portofrei erhältlich bei Die Online-Fachbuchhandlung beck-shop.de ist spezialisiert auf Fachbücher, insbesondere Recht, Steuern und Wirtschaft. Im Sortiment finden Sie alle Medien (Bücher, Zeitschriften, CDs, ebooks, etc.) aller Verlage. Ergänzt wird das Programm durch Services wie Neuerscheinungsdienst oder Zusammenstellungen von Büchern zu Sonderpreisen. Der Shop führt mehr als 8 Millionen Produkte.

2 Table of contents 1 Introduction Motivation and background of the study Review of existing research Knowledge aim and research questions Research objectives and structure of the thesis Demarcation and contribution Frame of reference and conceptual approach for the analysis of individual retirement-specific financial planning behavior The individual financial optimization problem FP perspectives and FP actions: the components of individual FPB Conceptual approach for the analysis of individual retirementspecific FPB Summary of the frame of reference and the conceptual approach Fundamentals of the retirement system in Germany Demographic developments in Germany The German pension system Summary of the fundamentals of the retirement system in Germany Retirement-specific behavioral finance and derivation of benchmark behavior for FP actions Relevance of behavioral finance to the study of individual retirement-specific FPB The standard economic theory of decision-making and its adaptation to behavioral finance Behavioral finance adaptations of additional FPB relevant theories Postulated benchmark behavior for individual FP actions Summary of retirement-specific behavioral finance and the derivation of benchmark behavior for FP actions...134

3 XIV Table of contents 5 Investor retirement survey and outlook on empirical analyses about individual retirement-specific FPB Operationalization of research-specific FP perspectives and FP actions Investor retirement survey as chosen observation instrument Identification of different investor groups with a particular capability for risk Structure of the empirical analyses for the examination of the conceptual approach Summary of introduction to investor retirement survey and empirical analyses Empirical analyses of individual retirement-specific FPB Pooling of investor groups and characterization of the newly defined homogenous investor types Analysis of investor type specific FP perspectives Analysis of investor type specific FP actions and comparison to benchmark behavior Scenario analyses for adequate saving rates Summary of the empirical analyses of individual retirement-specific FPB Review of empirical research and identification of suggestions for policy-makers, financial planners and the individual Review of identified FP perspectives Review of gaps identified in individual retirement-specific FP actions Summary of individual retirement-specific FPB profiles for the five investor types Suggestions for policy-makers, financial planners and the individual Summary of the review of empirical research and identification of suggestions for policy-makers, financial planners and the individual Conclusion Summary of results Assessment and critique of this study Further research questions...363

4 Detailed table of contents Foreword...VII Acknowledgements... IX Abstract... XI Table of contents... XIII Detailed table of contents... XV 1 Introduction Motivation and background of the study Review of existing research Knowledge aim and research questions Research objectives and structure of the thesis Demarcation and contribution Frame of reference and conceptual approach for the analysis of individual retirement-specific financial planning behavior The individual financial optimization problem Life-cycle hypothesis as theoretical basis for the intertemporal financial optimization problem Financial flows and risks relevant to individual retirementspecific FPB Model for the individual inter-temporal financial optimization problem FP perspectives and FP actions: the components of individual FPB General perspectives on financial planning Individual retirement-specific FPB and its two components as research focus FP perspectives: the first component of individual retirement-specific FPB...30

5 XVI Detailed table of contents FP actions: the second component of individual retirementspecific FPB Conceptual approach for the analysis of individual retirementspecific FPB Summary of the frame of reference and the conceptual approach Fundamentals of the retirement system in Germany Demographic developments in Germany The German pension system Overall set-up The first pillar: Compulsory state pension, also called statutory state pension (SSP) The second pillar: Occupational pension scheme (OPS) The third pillar: Voluntary personal pensions (VPP) Status of pension reforms The German statutory state pension benefit formula Summary of the fundamentals of the retirement system in Germany Retirement-specific behavioral finance and derivation of benchmark behavior for FP actions Relevance of behavioral finance to the study of individual retirement-specific FPB The standard economic theory of decision-making and its adaptation to behavioral finance Standard economic theory of decision-making Step 1: Normal perception of reality Faulty probability assessments based on prominent past information Positive bias Step 2: Normal decision making Prospect theory Limited cognitive abilities Portfolio segregation Complexity aversion Step 3: Normal implementation of actions Passivity Lack of self-control Home bias Regret...113

6 Detailed table of contents XVII 4.3 Behavioral finance adaptations of additional FPB relevant theories Behavioral finance adaptation of the life-cycle hypothesis Behavioral finance adaptation of the modern portfolio theory Postulated benchmark behavior for individual FP actions Benchmark behavior: Start of financial planning activities Benchmark behavior: Overall understanding of the individual financial situation in retirement Benchmark behavior: Holding of classical pension savings products Benchmark behavior: Diversification Benchmark behavior: Risk-return profile of the personal asset portfolio Benchmark behavior: Risk mitigation Summary of retirement-specific behavioral finance and the derivation of benchmark behavior for FP actions Investor retirement survey and outlook on empirical analyses about individual retirement-specific FPB Operationalization of research-specific FP perspectives and FP actions Operationalization and measurement specifications of socio-demographic and socio-economic attributes Operationalization and measurement specifications of FP perspectives Operationalization and measurement specifications of FP actions Investor retirement survey as chosen observation instrument Choice of the target group Introduction of the observation instrument Structure, content and formal characteristics of the questionnaire Realization of the investor retirement survey Identification of different investor groups with a particular capability for risk Introduction of investor groups with a lower than average risk capability Introduction of investor groups with a higher than average risk capability Assignment of individual interviewees to different investor groups...172

7 XVIII Detailed table of contents 5.4 Structure of the empirical analyses for the examination of the conceptual approach Summary of introduction to investor retirement survey and empirical analyses Empirical analyses of individual retirement-specific FPB Pooling of investor groups and characterization of the newly defined homogenous investor types Suggested pooling of investor groups with a lower than average risk capability Suggested pooling of investor groups with a higher than average risk capability Characterization of the resulting five investor types Analysis of investor type specific FP perspectives Analysis of the planned life in retirement Planned timing of retirement Individual life plans Individual coping strategies Financial objectives in retirement Analysis of the financial view on life in retirement Analysis of the expense side (income needs) in retirement Analysis of the income side in retirement Analysis of the retirement gap based on individually estimated income and expense streams Comparison of retirement gap with feeling of financial preparedness for retirement Analysis of the transaction preferences Preferences for information gathering and decision making Decision preferences in the family context Analysis of the risk profile Analysis of self-assessed risk appetite Analysis of risk sophistication Analysis of investor type specific FP actions and comparison to benchmark behavior Comparative analysis: Start of financial planning activities Comparative analysis: Overall understanding of the individual financial situation in retirement Comparative analysis: Holding of classical pension savings products...262

8 Detailed table of contents XIX Comparative analysis: Diversification Comparative analysis: Risk-return profile of the personal asset portfolio Comparative analysis: Risk mitigation Scenario analyses for adequate saving rates Different conceptions of the retirement gap Analytical derivation of the saving rates required to cover the wealth-adjusted statutory state retirement income gap Scenario analyses for implications of different assumptions on the required saving rate Scenario analysis combining impact of different levers on the financial situation of the Limited-wealth Risk-groups The longevity risk or the investigation of the duration of a secured retirement financing Comparative analysis with stated saving rates Summary of the empirical analyses of individual retirementspecific FPB Review of empirical research and identification of suggestions for policy-makers, financial planners and the individual Review of identified FP perspectives Planned life in retirement Financial view on life in retirement Transaction preferences Risk profile Review of gaps identified in individual retirement-specific FP actions Summary of individual retirement-specific FPB profiles for the five investor types Key findings about the Retirees Key findings about the Limited-wealth Risk-groups Key findings about the Limited-wealth Self-employed Key findings about the High-potential Key findings about the Wealthy Comparative positioning of all five investor types Suggestions for policy-makers, financial planners and the individual Key limitations in individual retirement-specific FPB Limitation #1: Over-optimistic perception of one s own financial reality Limitation #2: Unsophisticated planning of retirement cash-flows...324

9 XX Detailed table of contents Limitation #3: Late start of financial planning for retirement Limitation #4: Low risk mitigation despite high risk awareness Limitation #5: Sub-optimal portfolio choices Guiding principles to enhance individual retirementspecific FPB Suggestions for policy-makers seeking to improve individual FPB Suggestions for financial planners seeking to improve individual FPB Suggestions for the individual seeking to improve individual FPB Summary of the review of empirical research and identification of suggestions for policy-makers, financial planners and the individual Conclusion Summary of results Investor-type specific findings Most substantial limitations Improvement levers for policy-makers, financial planners and the individual Assessment and critique of this study Further research questions Appendix List of symbols Abbreviations Bibliography Index...439