scholarly journals Using vignettes to improve understanding of Social Security and annuities

2021 ◽  
pp. 1-18
Author(s):  
Anya Samek ◽  
Arie Kapteyn ◽  
Andre Gray
Keyword(s):  
Social Security ◽  
Financial Literacy ◽  
Retirement Planning ◽  
Healthy Person ◽  
Control Group ◽  
Sick Person ◽  
Percentage Points ◽  
Online Panel ◽  
Social Security Benefits ◽  
Video Vignette

Abstract Evidence shows that people have difficulty understanding complex aspects of retirement planning, which leads them to under-utilize annuities and claim Social Security benefits earlier than is optimal. To target this problem, we developed vignettes about the consequences of different annuitization and claiming decisions. We evaluated our vignettes using an experiment with a representative online panel of nearly 2,000 Americans. In our experiment, respondents were either assigned to a control group with no vignette, to a written vignette, or to a video vignette. They were then asked to give advice to hypothetical persons on annuitization or Social Security claiming, and were asked factual questions about these concepts. We found evidence that being exposed to vignettes led respondents to give better advice. For example, the gap between advised claim age for a relatively healthy person versus a relatively sick person was larger by nearly a year in the vignette treatments than in the control group. Furthermore, the vignettes increased financial literacy related to these concepts by 10–15 percentage points. Interestingly, the mode of communication did not have a significant impact – the video and written vignettes were equally effective.

scholarly journals Financial literacy and retirement planning in Canada

2015 ◽  
Vol 16 (3) ◽  
pp. 277-296 ◽  
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.

Diabetes and Illness Image: An Analysis of Diabetic Early-Adolescents' Self-Perception through the Draw-a-Person Test

1989 ◽  
Vol 65 (1) ◽  
pp. 83-93 ◽  
Author(s):  
Gianfranco Nuvoli ◽  
Mario Maioli ◽  
Caterina Ferrari ◽  
Gavino Pala ◽  
Giuseppina Chiaretti
Keyword(s):  
Early Adolescents ◽  
Healthy Person ◽  
The Self ◽  
Control Group ◽  
Psychological Recovery ◽  
Sick Person ◽  
The Past ◽  
Diabetic Children ◽  
Projective Representations ◽  
Anxious State

To study the self-projective representations expressed by diabetic children, aged between 10 and 15 yr., and to compare these with representations of a control group the Draw-a-person test associated with those for subsequent Draw-a-sick-person were administered to 23 children regularly checked by an Antidiabetic Centre. The diabetic subjects drew an image of “sick person” having projective elements with a regressive value and denoting a refuge in the past, together with depressive signs of retiring into themselves and of less consideration of the self. Also, the diabetic children seemed to be less prone to the cultural stereotype which requires a smiling and happy image of “the healthy person.” At the same time there was also a transparent symbolic defense which allowed the diabetics to adapt variously and to move from their anxious state toward psychological recovery.

scholarly journals Would People Behave Differently If They Better Understood Social Security? Evidence from a Field Experiment

2015 ◽  
Vol 7 (1) ◽  
pp. 275-299 ◽  
Author(s):  
Jeffrey B. Liebman ◽  
Erzo F. P. Luttmer
Keyword(s):  
Social Security ◽  
Behavior Change ◽  
Field Experiment ◽  
Labor Force Participation ◽  
Older Workers ◽  
Control Group ◽  
Percentage Points ◽  
Randomized Field Experiment ◽  
Informational Intervention ◽  
One Year

This paper presents the results of a randomized field experiment that provided information about key Social Security features to older workers. The experiment was designed to examine whether it is possible to affect individual behavior using a relatively inexpensive informational intervention about the provisions of a public program and to explore the mechanisms underlying the behavior change. We find that our relatively mild intervention (sending an informational brochure and an invitation to a web-tutorial) increased labor force participation one year later by 4 percentage points relative to the control group mean of 74 percent. (JEL C93, D12, H55)

scholarly journals Financial literacy and personal retirement planning: a socioeconomic approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kulondwa Safari ◽  
Charity Njoka ◽  
Mugisho Guershom Munkwa
Keyword(s):  
Social Security ◽  
Financial Literacy ◽  
Structural Equation ◽  
Financial Education ◽  
Retirement Planning ◽  
Developed Countries ◽  
Social Security System ◽  
Security System ◽  
Equation Modeling ◽  
Content Type

PurposeThe purpose of this study was to investigate the effect of financial literacy on personal retirement planning in Bukavu city in the Democratic Republic of the Congo (DRC), which is a Sub-Saharan underdeveloped country with a weak pension and social security system.Design/methodology/approachThis study used a structural equation modeling and a sample of 361 public sector employees selected in Bukavu city in the DRC. The data were collected through a survey questionnaire, and the data were analyzed using SPSS and SMART PLS software.FindingsThe results from the study revealed that financial literacy has a significant impact on personal retirement planning. Two constructs of financial literacy, respectively, computation capability and financial knowledge were found to have a significant impact on personal retirement planning, while financial education and attitudes toward financial products were found not significant in explaining personal retirement planning.Practical implicationsThe findings from this study can be used by policy makers in the DRC to design socioeconomic programs, aiming to increase the level of financial literacy in the country and awareness on personal retirement planning.Originality/valueThe reviewed studies were based mostly on developed countries, and countries were the social security system works effectively. We have not found a study on financial literacy and retirement planning that has been conducted in the DRC, which is a country with specific characteristics compared to developed countries.

scholarly journals Financial literacy and retirement planning in Finland

2017 ◽  
Vol 17 (3) ◽  
pp. 335-362 ◽  
Author(s):  
PANU KALMI ◽  
OLLI-PEKKA RUUSKANEN
Keyword(s):  
Social Security ◽  
Financial Literacy ◽  
Positive Relationship ◽  
Retirement Planning ◽  
Interesting Case ◽  
Level Of Education ◽  
Scaling Down ◽  
High Level ◽  
Pension Benefits ◽  
The Relationship

AbstractThis paper presents the results from the first study of financial literacy in Finland and explores the relationship between financial literacy and retirement planning in Finland. Finland is an interesting case because countervailing effects may exist: a high level of education might increase financial literacy, while the high provision of social security may decrease it and weaken its relationship with pension planning. The results indicate that the level of financial literacy in Finland is comparatively high, although it is unequally distributed among the population. With respect to pension planning, we find that there is little evidence of a relationship between the three core financial literacy questions and retirement planning; however, a statistically significant and positive relationship exists between retirement planning and an extended measure of financial literacy, consisting mostly of more demanding questions. When we split the sample by gender, we find evidence of a positive relationship between financial literacy and retirement planning among women but not among men. The results indicate that scaling down publicly guaranteed pension benefits may pose a challenge to the less financially literate segment of the population.

scholarly journals Retirement Preparedness: How Important Is Being Financially Literate?

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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