Are financial retirement incentives more effective if pension knowledge is high?

Abstract

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How Overconfident Financial Knowledge Hinders Retirement Planning? Mediating Analysis and Heterogeneity of Retirement Funding Sources

“…First, the mediators in this process have not been comprehensively investigated. Although previous studies reached a consensus conclusion that overconfident financial knowledge is not conducive to formulating specific retirement planning (Giesecke & Yang, 2018), few of them delve into the potential mediators, which fails to answer why overconfident financial knowledge decreases the probability of retirement planning.…”

“…Overconfident financial knowledge is considered to be negatively associated with consumer retirement planning (Giesecke & Yang, 2018). This conclusion is generally accepted by most studies.…”

Advances in understanding pension decisions

“…The paper by Giesecke and Yang (2017) asks whether greater financial knowledge and literacy helps people make smarter pension system choices. In particular, pension system incentives often have weak effects, so this paper explores the hypothesis that this could be due to participants' incomplete financial knowledge.…”

“…Though the sample size is small, the case study does point to potentially quite high rates of return for more knowledgeable individuals at older ages. Whereas the implication of work by Barua et al (2018) could be that expending money informing younger individuals would be helpful, the results in Giesecke and Yang (2017) indicate substantial benefits of improving older individuals' understanding.…”