Financial Literacy and Retirement Planning

Andrade, Cristina; Bazelais, Wesner; Das, Nandita

doi:10.18374/jife-14-4.4

JIFE

2014

DOI: 10.18374/jife-14-4.4

|View full text |Cite

Financial Literacy and Retirement Planning

Cristina Andrade¹,

Wesner Bazelais²,

Nandita Das³

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...

Citation Types

Supporting

Mentioning

Contrasting

Year Published

2014

2021

Publication Types

Select...

Article5

Relationship

Self Cite0

Independent5

Authors

Journals

Cited by 5 publications

References 27 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

Awareness on Pension Plans-a Study of Investors’ in Bengaluru City

B¹

2021

ITII

View full text Add to dashboard Cite

Individuals make inconsistent, irrational financial decisions mainly due to disproportionate time preferences. Bias and procrastination prevail. Along with a default option, there is a need for a customized plan with individuals' socio-cultural and economic status. Low participation rates are mainly due to a lack of awareness of pension literacy and behavioral aspects. Individuals have failed to create a corpus to protect themselves for retirement as there is a lack of awareness to suitability of a plan to one’s situation, failure to measure income adequacy at retirement, not able to identify the link between contributions made and pension drawdown, etc. Age and gender differences prevail strongly. Defined contribution plans are likely to dominate in global pension model in the years to come. Individuals are ready to own their risk but have little control and knowledge to cover themselves. Frequent timely and prompt advice or counseling from investment advisors will enable participants to understand the need, identify suitable options and schemes, and provide themselves with sustainable long-term savings. This should convert willingness to participate to real participation. Keywords: Financial literacy, Pension knowledge, Defined contribution pension plans (DCP), irrational decision making, demographics.

show abstract

Awareness on Pension Plans-a Study of Investors’ in Bengaluru City

B¹

2021

ITII

View full text Add to dashboard Cite

show abstract

Intergenerational Risk Sharing in Individual Retirement Schemes

Boes

Siegmann

2014

SSRN Journal

View full text Add to dashboard Cite

Employee Financial Literacy and Retirement Plan Behavior: A Case Study

2015

View full text Add to dashboard Cite

This paper uses administrative data on all active employees of the Federal Reserve System to examine participation in and contributions to the Thrift Saving Plan, the System's defined contribution (DC) plan. We link to administrative records a unique employee survey of economic/demographic factors including a set of financial literacy questions. Not surprisingly, Federal Reserve employees are substantially more financially literate than the population at large. Most importantly, financially savvy employees are also most likely to participate in their DC plan. Sophisticated workers contribute three percentage points more of their earnings to the DC plan than do the less knowledgeable, and they hold more equity in their pension accounts. We examine changes in employee plan behavior one year after employees completed a Learning Module about retirement planning, and we compare it to baseline patterns. We find that those employees who completed the Learning Module were more likely to start contributing and less likely to have stopped contributing to the DC plan post-survey. In sum, employer-provided learning programs are shown to significantly impact employee retirement saving decisions and consistent with a lot of other research, higher levels of financial literacy is found to have a beneficial impact on retirement saving patterns.

show abstract

scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.

Contact Info

customersupport@researchsolutions.com

10624 S. Eastern Ave., Ste. A-614

Henderson, NV 89052, USA

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Blog Terms and Conditions API Terms Privacy Policy Contact Cookie Preferences Do Not Sell or Share My Personal Information

Made with 💙 for researchers

Part of the Research Solutions Family.

Financial Literacy and Retirement Planning

Cited by 5 publications

References 27 publications

Awareness on Pension Plans-a Study of Investors’ in Bengaluru City

Awareness on Pension Plans-a Study of Investors’ in Bengaluru City

Intergenerational Risk Sharing in Individual Retirement Schemes

Employee Financial Literacy and Retirement Plan Behavior: A Case Study

Contact Info

Product

Resources

About