Wharton Digital Press Logo

This website does not support versions of Internet Explorer below version 9. Please try updating your version of Internet Explorer or using another browser. Thank You.

Financial Literacy Cover Image Buy Now
Starting at $103.12 per book
Share on FacebookTweet about this on TwitterShare on LinkedInGoogle+

Financial Literacy

Implications for Retirement Security and the Financial Marketplace

Annamaria Lusardi and Olivia S. Mitchell

As financial markets grow ever more complex and 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with defined contribution pensions; employer and government judgment regarding how much to save and where to invest has been replaced by employees having to make these choices on their own (sometimes assisted by advisers); and retirees have become responsible for managing their own pension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.

Featured Author Image

About the Authors

Annamaria Lusardi

Annamaria Lusardi is the Joel Z. and Susan Hyatt Professor of Economics at Dartmouth College and a Research Associate at the National Bureau of Economic Research. She has taught at Dartmouth College, Princeton University, the University of Chicago Public Policy School and the University Of Chicago Graduate School of Business. She was a visiting scholar at Harvard Business School from January to June, 2008. Dr. Lusardi holds a Ph.D. degree in Economics from Princeton University and a B.A. in Economics from Bocconi University, Milan, Italy. ... More

Olivia S. Mitchell

Dr. Olivia S. Mitchell is the International Foundation of Employee Benefit Plans Professor, as well as Professor of Insurance/Risk Management and Business Economics/Policy; Executive Director of the Pension Research Council; and Director of the Boettner Center on Pensions and Retirement Research; all at the Wharton School of the University of Pennsylvania. Her main areas of interest are private and public insurance, risk management, public finance, labour markets, compensation, and pensions with both a US and an international focus. She is a Re ... More

Related books

Pension Design and StructureThe Market for Retirement Financial AdviceMarketing for Financial AdvisorsFinancial Literacy Cover ImageInsurance and Behavioral EconomicsStocks for the Long RunFinancial Literacy Cover Image