2011 journal article
THE ROLE OF FINANCIAL LITERACY IN DETERMINING RETIREMENT PLANS
ECONOMIC INQUIRY, 50(4), 851–866.
UN Sustainable Development Goal Categories
1. No Poverty
(Web of Science)
4. Quality Education
(OpenAlex)
Source: Web Of Science
Added: August 6, 2018
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' well‐being for the remainder of their lifetimes, many do not possess enough basic financial knowledge to confidently make optimal choices. (JEL J26, J320, J240)