|Financial Sophistication in the Older Population
|Year of Publication
|Lusardi, A, Mitchell, OS, Vilsa Curto
|NBER Working Paper
|National Bureau of Economic Research
|Consumption and Savings, Employment and Labor Force, Event History/Life Cycle, Net Worth and Assets, Other, Public Policy, Women and Minorities
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.
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