scholarly journals Baby Boomer retirement security: The roles of planning, financial literacy, and housing wealth

2007 ◽  
Vol 54 (1) ◽  
pp. 205-224 ◽  
Author(s):  
Annamaria Lusardi ◽  
Olivia S. Mitchell
Keyword(s):  
Financial Literacy ◽  
Baby Boomer ◽  
Housing Wealth ◽  
Retirement Security

scholarly journals Financial literacy around the world: an overview

2011 ◽  
Vol 10 (4) ◽  
pp. 497-508 ◽  
Author(s):  
ANNAMARIA LUSARDI ◽  
OLIVIA S. MITCHELL
Keyword(s):  
Instrumental Variables ◽  
Financial Literacy ◽  
International Research ◽  
Retirement Planning ◽  
Middle Aged ◽  
Financial Decisions ◽  
Retirement Security ◽  
The World

AbstractIn 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.

Improving the Retirement Prospects of Lower-Wage Workers in a Defined-Contribution World

2007 ◽  
Vol 88 (3) ◽  
pp. 453-462 ◽  
Author(s):  
Judith G. Gonyea
Keyword(s):  
Financial Literacy ◽  
Pension Plans ◽  
Individual Responsibility ◽  
Retirement Savings ◽  
Defined Contribution ◽  
Savings Behavior ◽  
Service Workers ◽  
Retirement Security ◽  
Lower Wage ◽  
The Impact

Lower-wage workers have always faced challenges in saving for their retirement years. As U.S. businesses increasingly adopt defined-contribution pension plans and emphasize individual responsibility and choice, what is the impact of this shift on the working poor? Lack of pension coverage is a significant concern because Social Security alone will not assure a comfortable retirement for lower-income workers. Our survey of more than 300 lower-wage service workers revealed that significant predictors of retirement savings behavior included greater financial literacy as well as greater job stability, stronger workforce attachment, and higher income. Employer-sponsored pension plans were the most frequently used savings option. Based on the findings, we explore the potential impacts of the Pension Protection Act of 2006 (PPA) on lower-wage workers' retirement security and propose policy steps to reduce the risk of poverty being recycled into postretirement years.

scholarly journals Financial literacy and financial sophistication in the older population

2014 ◽  
Vol 13 (4) ◽  
pp. 347-366 ◽  
Author(s):  
ANNAMARIA LUSARDI ◽  
OLIVIA S. MITCHELL ◽  
VILSA CURTO
Keyword(s):  
Portfolio Choice ◽  
Financial Literacy ◽  
Framing Effects ◽  
Health And Retirement Study ◽  
American Population ◽  
Asset Valuation ◽  
Older Population ◽  
Risk Diversification ◽  
Retirement Security ◽  
Retirement Study

AbstractUsing a special-purpose module implemented in the Health and Retirement Study, we evaluate financial sophistication in the American population over the age of 50. We combine several financial literacy questions into an overall index to highlight which questions best capture financial sophistication and examine the sensitivity of financial literacy responses to framing effects. Results show that many older respondents are not financially sophisticated: they fail to grasp essential aspects of risk diversification, asset valuation, portfolio choice, and investment fees. Subgroups with notable deficits include women, the least educated, non-Whites, and those age 75+. In view of the fact that retirees increasingly must take on responsibility for their own retirement security, such meager levels of knowledge have potentially serious and negative implications.

Sign in / Sign up

Export Citation Format

Share Document