| Title | Financial Sophistication in the Older Population |
| Publication Type | Report |
| Year of Publication | 2012 |
| Authors | Lusardi, A, Mitchell, OS, Vilsa Curto |
| Series Title | NBER Working Paper |
| Document Number | 17863 |
| Institution | National Bureau of Economic Research |
| City | Cambridge, MA |
| Keywords | Consumption and Savings, Employment and Labor Force, Event History/Life Cycle, Net Worth and Assets, Other, Public Policy, Women and Minorities |
| Abstract | This paper examines data on financial sophistication among the U.S. older population, using a special-purpose module implemented in the Health and Retirement Study. We show that financial sophistication is deficient for older respondents (aged 55 ). Specifically, many in this group lack a basic grasp of asset pricing, risk diversification, portfolio choice, and investment fees. Subpopulations with particular deficits include women, the least educated, persons over the age of 75, and non-Whites. In view of the fact that people are increasingly being asked to take on responsibility for their own retirement security, such lack of knowledge can have serious implications. |
| DOI | 10.3386/w17863 |
| Endnote Keywords | Numeracy/Financial sophistication/Financial sophistication/Intertemporal Consumer Choice/Life Cycle Models and Saving/Portfolio Choice/Investment Decisions/Investment Decisions/Economics of the Elderly/Economics of the Handicapped/Non-labor Market Discrimination/Public Policy |
| Endnote ID | 62868 |
| Citation Key | 5926 |
