Effects of risk tolerance, financial literacy, and financial status on retirement planning

2021 ◽  
Author(s):  
Heejung Park ◽  
William Martin
Keyword(s):  
Financial Literacy ◽  
Retirement Planning ◽  
Risk Tolerance ◽  
Financial Status

scholarly journals Female workers' readiness for retirement planning: an evidence from Indonesia

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Linda Evelina Larisa ◽  
Anastasia Njo ◽  
Serli Wijaya
Keyword(s):  
Financial Literacy ◽  
Time Perspective ◽  
Structural Model ◽  
Retirement Planning ◽  
Future Time Perspective ◽  
Risk Tolerance ◽  
Primary Data ◽  
Content Type ◽  
Female Workers ◽  
The Government

PurposeThe purpose of this study is to examine the effects of demographical factors (age, education and income); psychological factors which are future time perspective (FTP) and financial risk tolerance (FRT); along with financial literacy on retirement planning among female workers in Indonesia.Design/methodology/approachThis study applies a quantitative approach, where primary data was acquired through online surveys to 529 workers in various locations in Indonesia. After data cleaning, the final sample size was 304. The PLS-SEM technique was utilised to assess the structural model in the study.FindingsThe results of this study show that income affects an individual's perspective towards the future. Financial literacy is confirmed to have a direct effect on retirement planning activity. Furthermore, financial literacy appears to be a significant mediator between demographical factors and FTP in affecting retirement planning. An individual's acceptance towards risk is also affected by financial literacy.Practical implicationsThe general public, especially female workers group who have no retirement funds, need to be educated on financial literacy. The government might need to encourage other parties and work together to financially educate the public, specifically regarding investments for retirement planning.Originality/valueMost previous studies on retirement planning focused on demographical factors in general, and not specifically on a certain group. Filling the gap of existing studies, this study specifically discusses retirement planning done by female workers in Indonesia. Women's role as a workforce, with their psychological conditions and financial literacy, makes for an interesting topic to be studied further in terms of retirement planning.

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.

scholarly journals Financial Literacy Key to Retirement Planning in Malaysia

2012 ◽  
Vol 2 (1) ◽  
Author(s):  
Folk Jee Yoong ◽  
Beh Loo See ◽  
Diana-Lea Baronovich
Keyword(s):  
Financial Literacy ◽  
Retirement Planning

scholarly journals Financial Literacy, Retirement Planning and Household Wealth

2012 ◽  
Vol 122 (560) ◽  
pp. 449-478 ◽  
Author(s):  
Maarten C.J. van Rooij ◽  
Annamaria Lusardi ◽  
Rob J.M. Alessie
Keyword(s):  
Financial Literacy ◽  
Retirement Planning ◽  
Household Wealth

PENGARUH FINANCIAL LITERACY, RISK TOLERANCE DAN OVERCONFIDENCE TERHADAP PENGAMBILAN KEPUTUSAN INVESTASI PADA USIA PRODUKTIF DI KOTA BANDUNG

2020 ◽  
Vol 4 (2) ◽  
pp. 236-250
Author(s):  
Ni Putu Priscilia Kartika Dewi ◽  
Astrie Krisnawati
Keyword(s):  
Financial Literacy ◽  
Risk Tolerance

Indeks Literasi Keuangan Indonesia masih rendah, karena itu pemerintah melalui Otoritas Jasa Keuangan berfokus pada peningkatan literasi keuangan khususnya penduduk yang berusia produktif. Pemilihan jenis investasi akan dipengaruhi oleh toleransi seorang investor terhadap risiko. Tingkat kepercayaan diri seseorang juga akan mempengaruhi dalam keputusan investasinya. Penelitian ini bertujuan untuk mengetahui pengaruh financial literacy, risk tolerance, dan overconfidence terhadap pengambilan keputusan investasi pada usia produktif di kota Bandung. Penelitian ini dilakukan dengan metode kuantitatif, data yang digunakan ialah dengan menyebarkan kuisioner kepada masyarakat usia produktif di Kota Bandung dengan total 400 responden. Analisis data menggunakan teknik analisis deskriptif, analisis regresi berganda untuk menjawab hipotesis yang diajukan. Hasil penelitian menunjukkan bahwa secara parsial variabel Financial Literacy, Risk Tolerance, dan Overconfidence berpengaruh signifikan terhadap pengambilan Keputusan Investasi pada usia produktif di Kota Bandung, dan Financial Literacy, Risk Tolerance, dan Overconfidence berpengaruh signifikan secara simultan terhadap pengambilan keputusan investasi pada usia produktif di Kota Bandung.

Financial literacy and retirement planning in Sweden

2011 ◽  
Vol 10 (4) ◽  
pp. 585-598 ◽  
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.

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.

Sign in / Sign up

Export Citation Format

Share Document