The Role of Financial Literacy in Determining Retirement Plans
41 Pages Posted: 18 Dec 2010 Last revised: 24 May 2023
Date Written: December 2010
Abstract
Workers nearing retirement face many important, and often irreversible, choices. We collected detailed demographic and financial literacy data on over 1,500 workers nearing retirement at three large companies to assess how individuals are planning for retirement. Many respondents display limited knowledge and understanding of public and company-provided retirement benefits. Controlling for basic demographics and wealth, we find that misconceptions about eligibility ages and plan generosity influence workers' expected age of retirement. Although retirement-related decisions will affect workers' wellbeing for the remainder of their lifetimes, many do not possess enough basic financial knowledge to confidently make optimal choices.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Financial Literacy and Planning: Implications for Retirement Wellbeing
-
Baby Boomer Retirement Security: The Roles of Planning, Financial Literacy, and Housing Wealth
-
Baby Boomer Retirement Security: The Roles of Planning, Financial Literacy, and Housing Wealth
-
Implications for Retirement Wellbeing of Financial Literacy and Planning
-
Wealth Accumulation and the Propensity to Plan
By John Ameriks, Andrew Caplin, ...
-
Financial Literacy and Stock Market Participation
By Maarten van Rooij, Annamaria Lusardi, ...
-
Financial Literacy and Stock Market Participation
By Maarten van Rooij, Annamaria Lusardi, ...
-
Financial Literacy and Stock Market Participation
By Maarten van Rooij, Annamaria Lusardi, ...