The withdrawal of the welfare states from pensions underscores the need for a better understanding of the spatial characteristics of adoption processes in the case of financial innovations. In 2001 the German pension reform reduced publicly provided pensions, and introduced subsidised, voluntary occupational plans to replace the loss in retirement income. This paper looks at the spatial and temporal adoptions of the newly created occupational pensions by analysing a unique, proprietary database, containing data on 12 000 employers and 286 000 employees working in the German metal and electric industry. The study identifies metropolitan/nonmetropolitan, East–West, and further geographical differences in the employers' timing to adopt, which in turn influences employees' decisions to enrol. Differences are identified among employee-level adoptions depending on the employers' timing and further, individual-level factors. The results emphasise the importance of geography in the transformation of old-age finances in the German welfare state.
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