March 2024

OECD/INFE 2023 International Survey of Adult Financial Literacy

By OECD Understanding current levels of financial literacy and needs is key for the effective development of financial literacy strategies and programmes. This report presents the results of an international survey of financial literacy levels among adults. A total of 39 countries and economies, of which 20 are OECD member countries, participated in this third coordinated measurement exercise using the globally recognized OECD/INFE 2022 Toolkit for Measuring Financial Literacy and Financial Inclusion to measure financial literacy levels among their adult...

The Lifelong Benefits of Improved Financial Literacy

By Annamaria Lusardi Annamaria Lusardi talked with Retirement Management Journal Editorial Advisory Board Members in June 2023 about benchmarking and assessing financial literacy, how it compares globally and why it matters, and providing financial education to improve retirement readiness. Source SSRN

February 2024

What could effective pensions engagement look like?

By Pensions Policy Institute This report, kindly sponsored by Standard Life, builds on the findings of the Briefing Note 136 - What is the role of engagement in pensions?, sets out the broad range of factors that can impact the level of engagement that can feasibly be achieved, the benefits and risks associated with engagement and the ways in which engagement strategies could be strengthened, including what other support may be needed for those who are less likely to become...

Gender Inequality Over the Life Cycle, Information Provision and Policy Preferences

By Alessandra Casarico, Jana Schuetz & Silke Uebelmesser We conduct a survey experiment with four thousand German respondents and provide information on two measures of gender inequality, separately or jointly: the gender gap in earnings and the gender gap in pensions. We analyze the effect of information provision on respondents’ views on the importance of reducing gender inequality and on their agreement with the adoption of policies targeted at different stages of the life cycle and aimed at reducing the...

Retirement income literacy lacking among older Americans

The American College of Financial Services has unveiled the findings from its 2023 Retirement Income Literacy Study, spotlighting a significant gap in retirement knowledge among older Americans. Drawing from a survey of more than 3,765 individuals ages 50 to 75, the study found a concerning lack of knowledge, with participants garnering an average score of 31% on a retirement literacy quiz. “In the U.S., with the exception of Social Security and the comparatively small number of workers with guaranteed pensions, saving...

January 2024

UK. Privately educated adults ‘more likely to have learned about pensions at school’

People who attended a private school are more likely to say they learned about pensions at school (20%) than those who were state-educated (6%), a survey has indicated. More than two-fifths (42%) of privately educated 35 to 44-year-olds said they reviewed or reassessed their pension pot at least once a year, compared with less than a fifth (17%) of state school-educated peers of the same age. Privately educated people were also more likely to hold private pensions outside of employment-linked pensions (40%),...

December 2023

Household Financial Literacy and Retirement Planning in Rural China

By Yuting Qian, Weiqiang Tan & Jingbo Wu Rural villager’s retirement is an essential issue in China. This study investigates the level of financial literacy of rural residents and its relationship with retirement planning. In-depth survey data of rural residents in the Greater Bay Area reveal that rural residents with different demographic structures have different levels of financial literacy. The empirical study finds that financial literacy is positively related to retirement planning, and this result is robust. Further research shows...

November 2023

Baby boomers are the least likely cohort to seek financial advice: study

Professionals offering personalized financial advice have emerged as a key reverse mortgage industry referral partnership. Still, a new study illustrates that older Americans are the most reticent to seek it out according to a new study conducted by Charles Schwab. Operating from a data set consisting of 1,000 401(k) plan recipients between the ages of 21 and 70, only 62% of baby boomers indicated they would like personalized investment advice for their retirement accounts. The positive response rate increases for each successive generation:...

October 2023

Understanding Financial Vulnerability Among Asians, Blacks, and Hispanics in the United States

By Andrea Hasler, Annamaria Lusardi, Olivia S. Mitchell & Alessia Sconti The COVID-19 crisis has brought to light the deeply rooted financial struggles that many people face in America, and it also exacerbated racial inequality. In particular, minority communities have been disproportionately impacted by the pandemic in many ways, making them ideal targets for efforts to promote financial well-being. This paper examines the financial vulnerability of Asians, Blacks, and Hispanics in the United States, along with potential drivers, using data...

August 2023

Helping people overcome their lack of ‘longevity literacy’

Longevity risk continues to be a hot topic for advisors, especially as their clients continue to suffer from a lack of “longevity literacy.“ The TIAA Institute and the Global Financial Literacy Excellence Center at the George Washington University School of Business released data last week showing that American adults are overwhelming unaware of both their potential lifespans and the amount of money needed to cover them. Respondents were asked to identify the likelihood among 65-year-olds of living to 90 and the likelihood of...