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Financial Literacy - Implications for Retirement Security and the Financial Marketplace (Hardcover)
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Financial Literacy - Implications for Retirement Security and the Financial Marketplace (Hardcover)
Series: Pensions Research Council
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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where to invest has been replaced by employees having to make these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.
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