Financial literacy and retirement planning in the United States

TitleFinancial literacy and retirement planning in the United States
Publication TypeJournal Article
Year of Publication2011
AuthorsLusardi, A, Mitchell, OS
JournalJournal of Pension Economics and Finance
Volume10
Issue04
Pagination509 - 525
Date PublishedJan-10-2011
ISSN Number1474-7472
KeywordsEducation, Financial literacy, Older Adults, Retirement Planning and Satisfaction
Abstract

We examine financial literacy in the US using the new National Financial Capability Study, wherein we demonstrate that financial literacy is particularly low among the young, women, and the less-educated. Moreover, Hispanics and African-Americans score the least well on financial literacy concepts. Interestingly, all groups rate themselves as rather well-informed about financial matters, notwithstanding their actual performance on the key literacy questions. Finally, we show that people who score higher on the financial literacy questions are much more likely to plan for retirement, which is likely to leave them better positioned for old age. Our results will inform those seeking to target financial literacy programmes to those in most need.

URLhttp://www.journals.cambridge.org/abstract_S147474721100045X
DOI10.1017/S147474721100045X
Short TitleJournal of Pension Economics and Finance
Citation Key8557