Exchange Traded Fund Savings Plans as Old-Age Provision Tool in Germany

Table of Contents

1 Introduction

2 Research question and objectives

3 Literature review

3.1 The German pension system

3.2 Exchange-traded funds

3.2.1 Suitability as a private pension alternative

3.2.2 Comparison to the commonly used pension alternatives

3.3 Current state of research

3.4 Theoretical principles of acceptance

3.4.1 Acceptance model for ETF savings plans

3.5 Summary of the literature review

4 Data and Methods

4.1 Research question and hypothesis

4.2 Research design

4.2.1 Questionnaire

4.2.2 Operationalisation of the variables

4.2.3 Data collection and sample frame

4.2.4 Data evaluation methods

5 Results

5.1 Reliability test and factor analysis

5.2 Descriptive statistics of the sample

5.3 Regression analysis of the extended TAM

5.4 Moderation and mediation analysis for the extended TAM

5.5 Influence of environmental factors on acceptance

5.6 Awareness and acceptance of ETF savings plans

5.7 Expectations related to the use of ETF savings plans

5.8 Summary of the results

6 Discussion

6.1 Original TAM variables: PU & PEOU

6.2 Added extended TAM variables: RI & FI

6.3 Impact of environmental factors

6.4 Theoretical implications

6.5 Summary, outlook, and limitations

7 Policy recommendations

7.1 Merger of financial knowledge and presented information

7.2 Germany fund as a mandatory pension scheme

8 Conclusion

Research Objectives and Focus

The primary objective of this dissertation is to identify the factors and reasons that prevent German citizens from using Exchange Traded Fund (ETF) savings plans for their old-age provision, despite their advantageous characteristics. The study aims to bridge the gap between traditional, often unprofitable, pension alternatives and the potential of modern ETF-based investment strategies by developing an integrated acceptance measurement model.

• Examination of the German pension system and the challenges of the "pension gap."
• Analysis of the technical and financial characteristics of ETFs in comparison to traditional retirement products.
• Investigation of psychological and behavioral factors (behavioral finance) influencing retirement planning decisions.
• Development and empirical validation of an extended Technology Acceptance Model (TAM) incorporating financial literacy and risk perception.
• Derivation of policy recommendations to enhance the usage of private pension provision measures.

Excerpt from the Book

Summary of Chapters

1 Introduction: Discusses the growing "pension gap" in Germany and identifies the motivation for exploring private alternatives like ETFs.

2 Research question and objectives: Defines the core investigative questions regarding consumer acceptance and awareness of ETF savings plans.

3 Literature review: Provides a comprehensive theoretical background on the German pension system, ETF characteristics, and behavioral finance theories.

4 Data and Methods: Details the empirical research design, including the extended Technology Acceptance Model (TAM) and the survey methodology.

5 Results: Presents the findings from the online survey, including factor analysis, hypothesis testing, and the impact of demographic factors.

6 Discussion: Interprets the empirical results, discussing how variables like financial literacy and risk perception affect acceptance.

7 Policy recommendations: Proposes concrete steps such as integrating financial education into schools and implementing a state-controlled mandatory fund scheme.

8 Conclusion: Summarizes the key findings and highlights the research's contribution to understanding financial decision-making.

Keywords

Exchange-traded funds, retirement planning, pension provision, behavioural finance, acceptance, technology acceptance model (TAM), pension gap, financial literacy, investment behavior, Germany, retirement, policy recommendations, market analysis, behavioral bias, capital accumulation.

Frequently Asked Questions

What is the core issue addressed in this dissertation?

The work focuses on the "pension gap" in Germany, where future retirees face declining income levels from statutory pensions, and investigates why more profitable ETF savings plans are not widely adopted as a private provision tool.

What are the central thematic fields?

The research combines economic theories of the German pension system, the financial mechanics of ETFs, and psychological theories from behavioral finance to explain investment behavior.

What is the primary goal of the dissertation?

The aim is to identify factors influencing the acceptance of ETF savings plans among potential German pensioners and to propose methods to increase their usage.

What scientific methodology is applied?

The research uses a quantitative approach, specifically an extended Technology Acceptance Model (TAM), tested through an online survey of 615 respondents, supported by regression and moderation/mediation analysis.

What is covered in the main section of the thesis?

The main part includes a critical review of existing literature, the development of a specific research framework, empirical data collection, and a thorough discussion of the results regarding how financial knowledge impacts investment decisions.

Which keywords best characterize this research?

Key terms include ETFs, retirement planning, behavioral finance, the Technology Acceptance Model (TAM), and financial literacy.

How does "Financial Literacy" affect the results?

Financial literacy (FI) is identified as a superordinate factor that influences how users perceive the benefits (usefulness) and ease of use of ETFs, effectively acting as a moderator that strengthens the decision to adopt these investment tools.

What are the main policy recommendations derived from the research?

The author suggests two primary paths: a long-term improvement in general financial education within the school system and a short-term approach involving a simplified, state-subsidized mandatory pension fund modeled after the Swedish system.