Financial literacy: implications for retirement security and the financial marketplace

As defined contribution pensions become prevalent, retirees are increasinglyresponsible for managing their own pension assets and thus their own financial literacy becomes crucial. Based on empirical evidence and new research, the book examines how financial literacy enhances retirement decision-making in ever more complex financial markets. As financial markets grow ever more complexand integrated, households must make increasingly sophisticated and all-too-often irreversible economic decisions. This is particularly evident in retirement decision-making. Traditional defined benefit pension schemes are being replaced with defined contribution pensions; employer and government judgment regarding how much to save and where to invest has been replaced by employees having to make these choices on their own (sometimesassisted by advisers); and retirees have become responsible for managing their own pension assets.This volume explores how financial literacy can enhance peoples' ability to make informed economic choices. It proposes that financial literacy determines how well people make and execute saving, investing, borrowing, and planning decisions. It examines causality using controlled settings to disentangle whether financial literacy causes saving or vice versa, and demonstrates that financial education programs do indeed enhance financial decision-making and asset accumulation. INDICE: The Outlook for Financial Literacy Part I. Financial Literacy and Financial Decision Making Financial Literacy and Planning: Implications for Retirement Wellbeing Pension Plan Distributions: The Importance of Financial Literacy Financial Literacy and 401(k) Loans Financial Illiteracy and Stock Market Participation: Evidence from the RAND American Life Panel Part II. Evaluating Financial Literacy Interventions Fees, Framing, and Financial Literacy in the Choice of Pension Manager Investor Knowledge and Experience with Investment Advisers and Broker-Dealers Pecuniary Mistakes? Payday Borrowing by Credit Union Members Annuities, Financial Literacy and Information Overload Part III. Shaping the Financial Literacy Environment Financial Counseling, Financial Literacy, and Household Decision Making Time Perception and Retirement Saving: Lessons from Behavioral Decision Research Making Savers Winners: An Overview of Prize-Linked Saving Products How to Improve Financial Literacy: Some Successful Strategies Bringing Financial Literacy and Education to Low and Middle Income Countries Improving Financial Literacy: The Role of Nonprofit Providers

• ISBN: 978-0-19-969681-9
• Editorial: Oxford University
• Encuadernacion: Cartoné
• Páginas: 328
• Fecha Publicación: 27/10/2011
• Nº Volúmenes: 1
• Idioma: Inglés