Frame of reference and conceptual approach for the analysis of individual retirement-specific financial planning behavior

Part of the Contributions to Economics book series (CE)


The frame of reference for this study provides the background for the analyses and statements about individual retirement-specific FPB. It consists of three elements: First, the inter-temporal financial optimization problem that individuals face with regard to financial planning for retirement is introduced. Second, financial planning as the major tool for financial provision in retirement and the study-specific definition of FPB with its two components, FP perspectives and FP actions are discussed. Finally, as a third element, the conceptual approach of the study is presented. It illustrates the overall analytical concept to accomplish the knowledge aim of this study.


Conceptual Approach Financial Planning Income Stream Retirement Income Behavioral Finance 
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  1. 26.
    Such a model could also be used for the analysis of how individuals ought to take decisions to solve their financial retirement issues. This research stream, which lies out of scope of this study, is known as “decision theory” and has, among others, been followed by Lindley 1990.Google Scholar
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    Cultural factors encompass the culture, sub-culture and social class. Culture determines the basic behavior of an individual, his attitudes and beliefs. Social factors include the reference group, family, social status and roles as well as the impact of opinion leaders. Social factors determine an individual’s behavior due to the interaction with specific groups and individuals as well as the role the individual plays in the different contexts. These cultural and social factors can be seen as external to the individual. Personal factors encompass observable elements that characterize an individual’s immediate situation, such as socio-demographic or socio-economic attributes (e.g., age and stage in the life-cycle, occupation and economic circumstances). They also include less observable aspects such as lifestyle, personal traits and self-perception. Psychological factors, finally, include activating elements such as motivation, with its sub-constructs, needs, emotions, mood and self-involvement, as well as cognitive elements such as learning and perception and beliefs and attitudes. Personal and psychological factors are internal elements. For a detailed description of the model or individual elements see Kotler/Bliemel 1995, p. 279ff, Kotler 1999, p. 161ff or Meffert 2000, p. 98ff and also Trommsdorff 1998, p. 47ff or Kroeber-Riel/Weinberg 1996, p. 53ff.Google Scholar
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