Drivers of Long-Term Savings Behavior from a Consumers' Perspective

Purpose: This paper delineates the impact of social context and savings attitudes on consumer's self-reported long-term savings and discusses how these drivers can be influenced to increase an individual's savings rate.
Design/methodology/approach: An online survey was conducted among 993 German savers. A structural equation model quantified the influence of the social context and an individual's attitudes on long-term savings behavior, as stated by consumers.
Findings: Both social context constructs - subjective norms and relationship quality - exert a significant influence on the savings attitudes of perceived anxiety and perceived importance, which in turn significantly affect long-term savings. Furthermore, the results of a mediation analysis indicated that the social context only has an indirect effect on long-term savings.
Research limitations/implications: The study was conducted in Germany only. Therefore, the results may not apply across cultures. In addition, the salient belief structures, access channels used, and savings product categories were not part of this study.
Practical implications: The results showed that financial institutions can influence an individual's attitudes toward long-term savings by providing a satisfying and trusted relationship. The positive effect on savings attitudes will translate to an increased long-term savings rate. According to the analysis, financial service providers can only have an indirect effect on long-term savings behavior.
Originality/value: This paper delineates the impact of the social environment on long-term savings. This relationship has not been investigated in previous research. In addition, the influence of the social context within the attitudes-behavior framework for long-term savings is expounded.