June 2021
17Jun

Do adverse health shock s induce myopic financial planning?

By Jialu L. Streeter Health and financial planning have both been found to be crucial to long-term financial stability. However, the impact of a health shock on financial plan-ning horizon was not directly tested. This article traces the trajectories of the financial planning horizon before and after the occurrence of work-limitinghealth shocks, using longitudinal panel data from the Health and RetirementStudy. Results show that, during the 10 years following a health shock, individ-uals are 20 to 39% more likely to...

June 17, 2021
Articles, Savings, , ,
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March 2021
11Mar

Pension Information and Women’s Awareness

By Marta Angelici, Daniela Del Boca, Noemi Oggero, Paola Profeta, Maria Christina Rossi, Claudia Villosio We explore the role of financial and pension information in increasing women’s knowledge and awareness of their future pension status, and consequently, in reducing the gender pension gap. A representative sample of 1249 Italian working women were interviewed to assess their knowledge about pensions and financial issues and about their own savings and personal wealth planned for retirement. The responses showed that their knowledge and...

March 11, 2021
Adequacy, Articles, Pension design, , ,
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09Mar

Ghana. Low financial literacy responsible for low patronage of pensions by women and informal workers

A Compliance officer with the National Pensions Regulatory Authority (NPRA) says low financial literacy is the cause of low patronage of the pension scheme among women and people in the informal sector. Lois Asiamah said the lack of adequate and appropriate information concerning pensions has left a lot of Ghanaian women and others in the informal sector unaware of the opportunities and advantages of investing in a pension scheme. She added that due to the lack of financial literacy, people in...

March 9, 2021
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February 2021
16Feb

Does financial wellness education increase retirement plan participation?

Any good advisor knows, a successful retirement plan requires more than a robust investment menu. Plan participation is essential, but also one of the biggest challenges. Financial wellness education can increase participation, bolstering plan participants’ chances of a successful, on-time retirement. In turn, this helps plan sponsors by reducing costs associated with retirement-age employees. With American adults experiencing increased financial stress during the pandemic, plan sponsors and participants are especially interested in financial wellness benefits that can help reduce financial stress...

February 16, 2021
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December 2020

23Dec

Understanding Debt in the Older Population

By Annamaria Lusardi, Olivia S. Mitchell, Noemi Oggero Poor financial capability can erode well-being in later life. To explore debt and debt management among older Americans, age 51-61, we designed and analyzed a new module in the 2018 Health and Retirement Study along with information from the 2018 National Financial Capability Study. Even though this group should be at the peak of their retirement savings, it nevertheless carries debt due to student loans and unpaid medical bills; having children...

December 23, 2020
Adequacy, Aging, Articles, , ,
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November 2020

24Nov

Lack of Financial Literacy May Deter Retirement Plan Participation

The results of a recent survey reveal that most Americans, including retirement plan participants, failed a fluency quiz of key investment selection terms, which can translate into saving less and lower use of investment products. Hearts & Wallets’ “Financial Fluency: What Consumer Understanding of the Language of Finance Means for Advice, Retirement and Asset Management” finds that only 19% of Americans achieved a passing grade when asked to choose the best answer for seven key investment selection...

November 24, 2020
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October 2020

15Oct

Financial Literacy and Financial Decision-Making at Older Ages

By Joelle H. Fong, Benedict S. Koh, Olivia S. Mitchell, Susann Rohwedder How well older households manage their wealth holdings is an important determinant of their financial security during retirement, yet little is known about their financial decision-making and how this relates to their financial literacy. Our paper fills this gap by measuring financial literacy among older persons in the Singapore Life Panel and examining its association with timely credit card debt repayment, stock market participation, and age-based investment...

October 15, 2020
Aging, Articles, ,
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02Oct

Fintech and Financial Literacy in the Lao PDR

By Peter Morgan, Long Q. Trinh A growing literature has examined the role of financial literacy in an individual’s income, saving behavior and the use of various financial products. However, so far, no one has examined the relationship between financial literacy and the awareness and adoption of financial technology (fintech) products, i.e., financial products provided via internet-based and mobile-based platforms. This paper examines this relationship in a developing country, the Lao People’s Democratic Republic (PDR). We use information collected...

October 2, 2020
Articles, Innovation, System Sustainability, , , ,
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September 2020

24Sep

Financial education: Current practices and future challenges

By Kristof De Witte, Oliver Holz, Kenneth De Beckker In a world where individuals become increasingly responsible for their financial well-being, and where the complexity of financial markets and products is growing, financial education becomes crucial. Although it is well accepted to introduce financial education in compulsory education, there is no consensus on the optimal way to implement financial education. This book explores the current state and the future challenges of financial education in five European countries: Belgium,...

September 24, 2020
Books, System Sustainability,
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August 2020

21Aug

Financial Knowledge Overconfidence and Early Withdrawals from Retirement Accounts

By Sunwoo T. Lee, Sherman D. Hanna Early distributions from retirement accounts could endanger future retirement income security, and the U.S. has restrictions to discourage them, including possible tax penalties. On the other hand, tapping one’s retirement assets may be rational when an individual encounters financial hardship. With the 2020 Coronavirus Aid, Relief, and Economic Security Act (CARES Act), early distribution from retirement accounts became an even more attractive option to individuals. In this study, we examined factors related...

August 21, 2020
Articles, Savings, , ,
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