Financial literacy and retirement planning in Japan

AbstractThe level of financial literacy is not high in Japan. Although a majority of respondents were able to correctly answer a simple question about interest rates, more than half were not able to correctly answer a question about risk diversification. Many respondents stated they did not know the answer to the financial literacy questions, which might indicate that Japanese are very cautious and only answer when confident in their response. Women, the young, and those with lower incomes and lower educational attainment have the lowest levels of financial literacy, and financial literacy increases the probability of having a retirement savings plan.

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Financial literacy and retirement planning in Canada

Journal of Pension Economics and Finance ◽

10.1017/s1474747215000311 ◽

2015 ◽

Vol 16 (3) ◽

pp. 277-296 ◽

Cited By ~ 31

Author(s):

DAVID BOISCLAIR ◽

ANNAMARIA LUSARDI ◽

PIERRE-CARL MICHAUD

Keyword(s):

Educational Attainment ◽

Financial Literacy ◽

Retirement Planning ◽

Retirement Savings ◽

Risk Diversification ◽

Percentage Points ◽

Lower Educational Attainment

AbstractIn this paper, we draw on internationally comparable survey evidence on financial literacy and retirement planning in Canada to investigate how financially literate Canadians are and how financial literacy is linked to retirement planning. We find that 42% of respondents are able to correctly answer three simple questions measuring knowledge of interest compounding, inflation, and risk diversification. This is consistent with evidence from other countries, and Canadians perform relatively well in comparison with Americans but worse than individuals in other countries, such as Germany. Among Canadian respondents, the young and the old, women, minorities, and those with lower educational attainment do worse, a pattern that has been consistently found in other countries as well. Retirement planning is strongly associated with financial literacy; those who responded correctly to all three financial literacy questions are 10 percentage points more likely to have retirement savings.

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Financial literacy and retirement planning in Sweden

Journal of Pension Economics and Finance ◽

10.1017/s1474747211000497 ◽

2011 ◽

Vol 10 (4) ◽

pp. 585-598 ◽

Cited By ~ 68

Author(s):

JOHAN ALMENBERG ◽

JENNY SÄVE-SÖDERBERGH

Keyword(s):

Educational Attainment ◽

Low Income ◽

Financial Literacy ◽

Pension System ◽

Retirement Planning ◽

Strongly Correlated ◽

Consumer Survey ◽

Swedish Population ◽

Risk Diversification

AbstractWe use data from the Swedish Financial Supervisory 2010 consumer survey to look at levels of financial literacy and retirement planning in the Swedish population. The results indicate that many adults have low financial literacy. In general, financial literacy levels are lower among the young, the old, women and those with low income or low educational attainment. People who report having tried to plan for retirement have higher levels of financial literacy. In particular, an understanding of risk diversification is strongly correlated with planning for retirement. We relate our findings to features of the Swedish pension system.

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Orthopaedic Surgery Resident Financial Literacy: An Assessment of Knowledge in Debt, Investment, and Retirement Savings

The American Surgeon ◽

10.1177/000313481908500424 ◽

2019 ◽

Vol 85 (4) ◽

pp. 353-358 ◽

Cited By ~ 3

Author(s):

John D. Jennings ◽

Courtney Quinn ◽

Justin A. Ly ◽

Saqib Rehman

Keyword(s):

United States ◽

Orthopedic Surgery ◽

Financial Literacy ◽

Financial Education ◽

Retirement Planning ◽

The United States ◽

Financial Knowledge ◽

Retirement Savings ◽

Willingness To Participate ◽

Formal Curriculum

Most orthopedic residents carry significant debt and may enter their practice with little knowledge of business management, minimal retirement savings, and overall poor financial literacy. This study aimed to gauge financial literacy, debt, and retirement planning in United States orthopedic surgery residents. Willingness to participate in formalized financial education was also assessed. Eighty-five allopathic orthopedic surgery residents in the United States completed a 14-question anonymous online survey in 2016. The survey assessed demographic data, self-assessed financial knowledge, amount of credit card debt and loans, preparation for retirement, and willingness to participate in formal didactic education on these topics. Most respondents derive their financial knowledge from personal research (51%), whereas only 4 per cent have a formal curriculum. Despite most respondents reporting more than $200,000 in outstanding loans, only 31 per cent create and stick to a budget. Few programs offer retirement advice, and 48 per cent of respondents save $0 toward retirement. Eighty-five per cent of residents expressed interest in learning about personal investment, savings, and retirement planning. Orthopedic surgery residents carry significant debt and do not achieve their high-income potential until disproportionately later in life. Only 4 per cent of residents have formal training in investing, personal finance, or retirement despite a majority who desire such a curriculum. In fact, almost 75 per cent of those surveyed felt less prepared for retirement than their peers outside of medical training. This study suggests a role for formal financial education in the orthopedic curriculum to prepare residents for retirement, improve financial literacy, and enhance debt management.

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Financial literacy and retirement planning: the Russian case

Journal of Pension Economics and Finance ◽

10.1017/s1474747211000503 ◽

2011 ◽

Vol 10 (4) ◽

pp. 599-618 ◽

Cited By ~ 75

Author(s):

LEORA KLAPPER ◽

GEORGIOS A. PANOS

Keyword(s):

Financial Markets ◽

Financial Literacy ◽

Retirement Planning ◽

Pension Funds ◽

Regional Disparities ◽

Public Pension ◽

Ageing Population ◽

Retirement Plans ◽

Simple Question ◽

The Relationship

AbstractWe examine the relationship between financial literacy and retirement planning in Russia, a country with a relatively old and rapidly ageing population, large regional disparities, and emerging financial markets. We find that only 36% of respondents in our sample understand interest compounding and only half can answer a simple question about inflation. In a country with widespread public pension provisions, we find that financial literacy is significantly and positively related to retirement planning involving private pension funds. Thus, along with encouraging the availability of private retirement plans, efforts to improve financial literacy can be pivotal to the expansion of the use of such funds.

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A Conceptual Review on the Effect of Attitudes towards Retirement on Saving Intentions and Retirement Planning Behavior

SHS Web of Conferences ◽

10.1051/shsconf/20185602005 ◽

2018 ◽

Vol 56 ◽

pp. 02005

Author(s):

Rozilah Shabor Rameli ◽

Maran Marimuthu

Keyword(s):

Portfolio Choice ◽

Behavioral Intention ◽

Financial Literacy ◽

Retirement Planning ◽

Retirement Savings ◽

Individual Motivation ◽

Future Studies ◽

Saving Behavior ◽

High Level

Retirement planning has been the major concern for many years and is becoming an increasingly prominent issue faced by people nowadays. Retirement planning behavior is defined as people’s behavior towards their retirement planning. Therefore, attitudes toward retirement might lead to the formation of saving intentions to perform the retirement planning behavior. Past studies have indicated that planning has impacted on the saving behavior as well as to the portfolio choice. It is further emphasized that those planners who have retirement planning arrive close to retirement have a high level of wealth and show higher financial literacy than non-planners. The necessity of individuals to increase retirement savings had over a wide promoted, however, the understanding on individual motivation towards savings at higher rates still remains sparse. For those employees who are willing to retire from work, they should have enough savings to cover their needs during retirement. Unfortunately, findings from previous study showed that many people do not start to prepare and save for their retirement till very late in life-cycle, and do not manage to have adequate savings for their retirement. As a contribution to the literature, the present paper theoretically conceptualizes specifically only on the role of savings intention as a mediator between attitudes toward retirement and retirement planning behavior. Drawing on the theory of planned behavior, it is suggested that the behavioral intention is the closest predictor of behavior. Hence, the stronger the intention to perform a behavior, the greater the probability that the behavior should occur. The recommendations for future studies are proposed.

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Sistema Pensional Colombiano: Implicaciones De La Educación Financiera Sobre Las Decisiones De Traslado De Los Individuos (Colombian Pension System: Implications of Financial Literacy on Retirement Planning Decisions)

SSRN Electronic Journal ◽

10.2139/ssrn.3499853 ◽

2019 ◽

Author(s):

Carlos-Santiago Guzman

Keyword(s):

Financial Literacy ◽

Pension System ◽

Retirement Planning ◽

Planning Decisions

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Retirement Preparedness: How Important Is Being Financially Literate?

Innovation in Aging ◽

10.1093/geroni/igaa057.1440 ◽

2020 ◽

Vol 4 (Supplement_1) ◽

pp. 445-445

Author(s):

Mengya Wang ◽

Suzanne Bartholomae

Keyword(s):

Financial Literacy ◽

Retirement Planning ◽

The Other ◽

Financial Security ◽

Lower Odds ◽

Highly Educated ◽

Retirement Preparedness ◽

The Us ◽

Risk Takers ◽

Policies And Programs

Abstract Financial security in retirement is a major concern for many Americans. Numerous studies document that Americans are not prepared for retirement, with financial illiteracy cited as one reason Americans fail to plan. Employing data from the 2018 National Financial Capability Study (N=27,091), this study investigates actual financial literacy (AFL) and perceived financial literacy (PFL) and how combinations of this measure influences retirement planning, and varies based on years from retirement. This study found relatively low financial literacy and retirement preparedness levels among the US sample, even for those pre-retirees ages 55 to 64. Individually, PFL and AFL increased as one approached retirement. When combined, adults nearing retirement (55 to 64) comprised the greatest proportion of the high AFL and high PFL (29.9%) group compared to adults 20 years or more from retirement (18-44) who largely made up the low AFL and PFL (48%) group. Based on a logistic regression, adults closest to retirement (ages 55 to 64) are more likely to be planning compared to the other groups, as are adults who were financially confident, risk takers, highly educated, males, and white. Compared to adults with high AFL and high PFL, adults with low AFL and low PFL, or a combination (low PFL and high AFL, high PFL and low AFL) have lower odds of preparing for retirement. Both PFL and AFL influences retirement planning, and PFL may be as important as AFL. Our highlight the importance of policies and programs to support Americans with retirement planning.

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