Household Finance

• Savings and Old-Age Provision
• Insurance
• Debts and Real Estate
• Financial Literacy and Communication

The research area “Household Finance” analyses the financial decision-making of private households against the background of changing institutional and macroeconomic conditions. Due to demographic changes reforms were necessary, which shifted responsibilities concerning old-age provision from state institutions to private, market-oriented solutions. This development raises important questions which need to be addressed: What does this shift imply for saving and investment decisions in the long-term? Will there be distributional effects? In the upcoming years, the retirement of the baby boomer generation in particular will cause large societal changes and will require adjustments to the institutional framework. In this context, the research area examines how institutions should be shaped so that households are able to make good decisions.

This research area is closely linked to the “Banks and Financial Intermediation” research area. Joint assessments will contribute to a comprehensive understanding of demand and supply effects within the financial sector that are driven by demographic change, digitalisation and climate change. This comprehensive view will facilitate the deduction of evidence-based policy recommendations for the design of institutions and markets.