Financial Literacy and Retirement Planning in Japan

Sekita, Shizuka

doi:10.2139/ssrn.1809681

Cited by 68 publications

(101 citation statements)

References 8 publications

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“…A brief discussion on the way income is associated with debt literacy in the sample we studied was presented in Cwynar et al (). Overall, the expectation of a positive relationship between these two variables—evidenced by former studies (e.g., Atkinson and Messy ; Lusardi and Tufano ; Sekita )—seems reasonable, despite the direction of causality. Although currently the acquisition of knowledge, including financial, does not require sizable spending, it is justified that more wealthy people—in terms of their income—have better access to broadly defined education.…”

Section: Resultsmentioning

confidence: 67%

Debt Literacy and Debt Literacy Self‐Assessment: The Case of Poland

Cwynar¹,

Cwynar²,

Wais³

2018

Journal of Consumer Affairs

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It is well documented that financial literacy is at best moderate around the world and that the cost of ignorance in this field may be high on both microeconomic and macroeconomic levels. We surveyed a representative sample of Poles to measure their debt literacy—a little‐studied aspect of financial literacy—and therefore obtain insight into the factors predicting it. Our study evidenced low levels of debt literacy and its overestimation by respondents in their self‐reports. We also confirmed some of the patterns found in former studies, including the gender gap and a positive relationship between the level of educational attainment and debt literacy. Finally, our examination provides compelling outcomes with regard to the segmentation of the sample on the basis of objective and subjective debt literacy scores. They show large heterogeneity of debt literacy and thus confirm the need for far‐reaching customization of debt‐oriented education.

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Section: Resultsmentioning

confidence: 67%

Debt Literacy and Debt Literacy Self‐Assessment: The Case of Poland

Cwynar¹,

Cwynar²,

Wais³

2018

Journal of Consumer Affairs

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“…Some of the first studies on the effects of financial literacy were linked to its effects on retirement planning in the United States and these studies have been replicated in most of the countries covered in Table 2, showing that the correlation between financial literacy and different measures of retirement planning is quite robust. 31 Studies breaking out specific components of financial literacy tend to conclude that what matters most is advanced financial knowledge (for example, risk diversification) and the capacity to do calculations (Lusardi and Mitchell 2011d; Alessie, van Rooij, and Lusardi 2011; Fornero and Monticone 2011; Klapper and Panos 2011; Sekita 2011). …”

Section: How Does Financial Literacy Matter?mentioning

confidence: 99%

“…38 Nevertheless, despite the fact that this form of longevity protection is very valuable in theory, relatively few payout annuities are purchased in practice in virtually every country (Mitchell, Piggott, and Takayama 2011). New research points to the importance of framing and default effects in this decision process (Agnew and Szkyman 2011; Brown, Kapteyn, and Mitchell 2013).…”

Section: How Does Financial Literacy Matter?mentioning

confidence: 99%

“… Note: This table reports respondents’ answers to the question: “On a scale from 1 to 7, where 1 means very low and 7 means very high, how would you assess your overall financial knowledge?” Note that the question posed in Lusardi and Mitchell (2009) is different and asks the following: “How would you assess your understanding of economics (on a 7-point scale;1 means very low and 7 means very high)?” In Japan, respondents were asked whether they think that they know a lot about finance on a 1–5 point scale (Sekita 2011). …”

Section: Figurementioning

confidence: 99%

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The Economic Importance of Financial Literacy: Theory and Evidence

Lusardi

Mitchell

2014

Journal of Economic Literature

2,975

909

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This paper undertakes an assessment of a rapidly growing body of economic research on financial literacy. We start with an overview of theoretical research which casts financial knowledge as a form of investment in human capital. Endogenizing financial knowledge has important implications for welfare as well as policies intended to enhance levels of financial knowledge in the larger population. Next, we draw on recent surveys to establish how much (or how little) people know and identify the least financially savvy population subgroups. This is followed by an examination of the impact of financial literacy on economic decision-making in the United States and elsewhere. While the literature is still young, conclusions may be drawn about the effects and consequences of financial illiteracy and what works to remedy these gaps. A final section offers thoughts on what remains to be learned if researchers are to better inform theoretical and empirical models as well as public policy.

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“…Overall, the level of financial literacy is not high in Japan with only 49% of Japanese respondents in a study able to answer two simple questions on interest rates and inflation. Financial literacy increases the probability of having a savings plan for retirement (Sekita, 2011). To address low level of retirement planning and therefore relieve pressure on public age pension schemes, Japan also introduced US style 401k-type pension plans (Walker, 2001).…”

Section: Japanmentioning

confidence: 99%

Wealth Management and Financial Advisory Services in the Asia-Pacific Region

Santacruz

2018

JWM

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This article presents an industry study of wealth management and financial advisory services in the Asia-Pacific region, recognizing the strong growth in personal wealth in this region. It aims to gain an understanding of the structure of the industry, comments on current directions, and assesses the opportunities in the region. The article starts with a look at the wealth management and financial advisory services industry in the United States, on which the practices in other countries are patterned, also noting that U.S. financial entities are major players in the Asia-Pacific region. The author then examines the industry in Australia, which has a relatively well-developed financial advisory environment and continues with a look at the industry in other major Asia-Pacific countries. For each country, the article assesses the industry participants and the regulatory environment. Finally, the article describes the general trends that impact the industry and identifies potential opportunities for the future.

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Financial Literacy and Retirement Planning in Japan

Cited by 68 publications

References 8 publications

Debt Literacy and Debt Literacy Self‐Assessment: The Case of Poland

Debt Literacy and Debt Literacy Self‐Assessment: The Case of Poland

The Economic Importance of Financial Literacy: Theory and Evidence

Wealth Management and Financial Advisory Services in the Asia-Pacific Region

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