The knowledge aim of this thesis was to gain an understanding of individual retirement-specific financial planning behavior (FPB) with its two elements FP perspectives and FP actions. While FP perspectives comprise the mental constructs, plans and expectations individuals have for retirement, FP actions describe the process decisions and portfolio choices that express how individuals actually carry out their financial planning for retirement. With regard to the FP actions, the thesis specifically aimed to compare actual behavior with principles for FP actions derived from behavioral finance, modern portfolio theory and practitioners’ advice. Based on the identification of areas where individual retirement-specific FPB showed the most pronounced limitations, levers were identified by which policy-makers, financial planners and the individual can improve individual FPB. These recommendations reflect in particular the new retirement reality with a reduced pension contribution stemming from the state, a shift of responsibility to the individual and a related general insecurity with regard to individual financial situations in retirement.
KeywordsFinancial Planning Portfolio Choice Financial Planner Investor Type Behavioral Finance
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- 536.“All things equal, people prefer to be treated fairly and like to treat other people fairly. [...] [Therefore,] concerns about fairness also matter and compete with purely selfish motives for scarce resources.” Mullainathan/Thaler 2000, p. 0-abstract.Google Scholar
- 537.Boeri et al. 2002 found that a majority of individuals think that the state should not reallocate transfers away from pensions to the young and unemployed. Indeed, “only one out of five respondents who are aware of the crisis are also altruistic with respect to inter-generational redistribution.” Boeri et al. 2002, p. 400. This can be seen as a clear sign that selfishness plays a role if retirement is looked at from a more macro-economic perspective.Google Scholar