Business Economics and Public Policy Papers

Document Type

Journal Article

Date of this Version

10-2011

Publication Source

Journal of Pension Economics and Finance

Volume

10

Issue

4

Start Page

497

Last Page

508

DOI

10.1017/S1474747211000448

Abstract

In an increasingly risky and globalized marketplace, people must be able to make well-informed financial decisions. New international research demonstrates that financial illiteracy is widespread in both well-developed and rapidly changing markets. Women are less financially literate than men, the young and the old are less financially literate than the middle-aged, and more educated people are more financially knowledgeable. Most importantly, the financially literate are more likely to plan for retirement. Instrumental variables estimates show that the effects of financial literacy on retirement planning tend to be underestimated. In sum, around the world, financial literacy is critical to retirement security.

Keywords

financial literacy, retirement planning, cross country analysis

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Date Posted: 27 November 2017

This document has been peer reviewed.