Financial Knowledge and Financial Literacy at the Household Level

TitleFinancial Knowledge and Financial Literacy at the Household Level
Publication TypeJournal Article
Year of Publication2012
AuthorsGustman, AL, Steinmeier, TL, Tabatabai, N
JournalThe American Economic Review
Volume102
Issue3
Pagination309-313
KeywordsNet Worth and Assets, Other, Public Policy, Retirement Planning and Satisfaction, Social Security
Abstract

There is evidence of a relation between numeracy and wealth held outside of pensions and Social Security. With pensions and Social Security accounting for half of wealth at retirement, and evidence that those with pensions save more in other forms, one would expect to find knowledge of pensions and Social Security influencing retirement saving. Yet we find no evidence that knowledge of pensions and Social Security is related to nonpension, non-Social Security wealth, to numeracy, or that it plays an intermediate role in the numeracy-wealth relation. Our findings raise questions about policies that would enhance numeracy to increase retirement saving. PUBLICATION ABSTRACT

Notes

Copyright - Copyright American Economic Association May 2012 Language of summary - English Pages - 309-313 ProQuest ID - 1015153104 Document feature - References Last updated - 2012-07-15 CODEN - AENRAA Place of publication - Nashville Corporate institution author - Gustman, Alan L; Steinmeier, Thomas L; Tabatabai, Nahid DOI - 2666754021; 69332102; 28831; AENRAA; AER; AMEAAER20120501101257aer1023309 Banks, J 2007 Understanding pensions: Cognitive function, numerical ability and retirement saving Fiscal Studies 28 2 143-170 Cagan, Phillip. 1965. The Effect of Pension Plans on Aggregate Savings. New York: National Bureau of Economic Research. Gustman, Alan L., Steinmeier, Thomas L. 1993 Pension portability and labor mobility - evidence from the survey of income and program participation Journal of Public Economics 50 3 299-323 Gustman, Alan L, Steinmeier, Thomas L 1999 Effects of Pensions on Savings: Analysis with Data from the Health and Retirement Study Carnegie-Rochester Conference Series On Public Policy 50 271-324 Gustman, Alan L., Thomas L. Steinmeier, and Nahid Tabatabai. Financial Knowledge and Financial Literacy at the Household Level. National Bureau of Economic Research, Inc, NBER Working Papers: 16500, 2010. Gustman, Alan L, Steinmeier, Thomas L 2010 Pensions in the health and retirement study Pensions in the health and retirement study xxxii, 367 Gustman, Alan L., and Thomas L. Steinmeier. 2001. Imperfect Knowledge, Retirement and Saving. University of Michigan Retirement Research Center Working Paper UM00-08. Katona, George. 1965. Private Pensions and Individual Savings. Ann Arbor: University of Michigan Institute for Social Research. Lusardi, Annamaria, and Olivia S. Mitchell. 2006. Financial Literacy and Retirement Preparedness: Evidence and Implications for Financial Education. University of Michigan Retirement Research Center Working Paper UM 06-144. Lusardi, Annamaria, Mitchell, Olivia S. 2007 Baby Boomer retirement security: The roles of planning, financial literacy, and housing wealth Journal of Monetary Economics 54 1 205-224 McArdle, John J, Smith, James P 2009 Cognition and Economic Outcomes in the Health and Retirement Survey Working paper series (National Bureau of Economic Research) w15266

URLhttp://search.proquest.com.proxy.lib.umich.edu/docview/1015153104?accountid=14667http://mgetit.lib.umich.edu/?ctx_ver=Z39.88-2004andctx_enc=info:ofi/enc:UTF-8andrfr_id=info:sid/ProQ 3Aabiglobalandrft_val_fmt=info:ofi/fmt:kev:mtx:journalandrft.genre=articl
DOI10.1257/aer.102.3.309
Endnote Keywords

numeracy/retirement planning/social security/Wealth/public policy

Endnote ID

69526

Citation Key7729