Working Paper: NBER ID: w15350
Authors: Annamaria Lusardi; Olivia S. Mitchell
Abstract: This paper reports on several self-assessed and objective measures of financial literacy newly added to the American Life Panel (ALP), and it links these performance measures to efforts consumers make to plan for retirement. We evaluate the causal relationship between financial literacy and retirement planning by exploiting information about respondents' financial knowledge acquired in school - before entering the labor market and certainly before starting to plan for retirement. Results show that those with more advanced financial knowledge are those more likely to be retirement-ready.
Keywords: Financial Literacy; Retirement Planning; Consumer Behavior
JEL Codes: D91
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| prior financial knowledge (G53) | financial literacy (G53) |
| financial literacy (G53) | retirement planning (J26) |