Information search in pension plan decisions

Abstract

This study empirically investigates consumer information search behaviour with respect to supplemental employer-based and private pension plans. The analysis shows that households collect as much information from their social environment as from experts. Regarding the dissemination of information, this suggests that governments should put more emphasis on information that is easily accessible to general public.

Keywords:

• search behaviour
• information
• household finance
• supplemental pensions

JEL Classification:

• D14
• D83

Acknowledgement

The author would like to thank Doris Neuberger, Katharina Wendler and Philipp Wichardt for their helpful discussions and suggestions.

Notes

¹  Stigler (1961) was among the first to analyse information search behaviour in general and found specialized search activities from a few channels.

²  This results in a very low variation of the dependent variable, so a multiple analysis is not performed.

³  With the data underlying this analysis, I am not able to control for the order of contacting people regarding financial questions.