Planning and Financial Literacy: How Do Women Fare?

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Wharton Pension Research Council Working Papers
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women
financial literacy
retirement planning
Economics
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Lusardi, Annamaria
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Many older US households have done little or no planning for retirement, and there is a substantial population that seems to undersave for retirement. Of particular concern is the relative position of older women, who are more vulnerable to old-age poverty due to their longer longevity. This paper uses data from a special module we devised on planning and financial literacy in the 2004 Health and Retirement Study. The evidence indicates that women display much lower levels of financial literacy than the older population as a whole. In addition, women who are less financially literate are also less likely to plan for retirement and be successful planners. These findings have important implications for policy and for programs aimed at fostering financial security at older ages.

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2007-08-01
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The research reported herein was pursuant to a grant from the US Social Security Administration (SSA) funded as part of the Retirement Research Consortium (RRC); research support was also provided by the Pension Research Council and Boettner Center at the Wharton School. Financial support was also provided by the Pension Research Council and the Boettner Center at The Wharton School of the University of Pennsylvania.
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