Sistema Pensional Colombiano: Implicaciones De La Educación Financiera Sobre Las Decisiones De Traslado De Los Individuos (Colombian Pension System: Implications of Financial Literacy on Retirement Planning Decisions)

2019 ◽  
Author(s):  
Carlos-Santiago Guzman
Keyword(s):  
Financial Literacy ◽  
Pension System ◽  
Retirement Planning ◽  
Planning Decisions

Financial literacy and retirement planning in Sweden

2011 ◽  
Vol 10 (4) ◽  
pp. 585-598 ◽  
Author(s):  
JOHAN ALMENBERG ◽  
JENNY SÄVE-SÖDERBERGH
Keyword(s):  
Educational Attainment ◽  
Low Income ◽  
Financial Literacy ◽  
Pension System ◽  
Retirement Planning ◽  
Strongly Correlated ◽  
Consumer Survey ◽  
Swedish Population ◽  
Risk Diversification

AbstractWe use data from the Swedish Financial Supervisory 2010 consumer survey to look at levels of financial literacy and retirement planning in the Swedish population. The results indicate that many adults have low financial literacy. In general, financial literacy levels are lower among the young, the old, women and those with low income or low educational attainment. People who report having tried to plan for retirement have higher levels of financial literacy. In particular, an understanding of risk diversification is strongly correlated with planning for retirement. We relate our findings to features of the Swedish pension system.

scholarly journals Retirement Planning Behaviour of Working Individuals and Legal Proposition for New Pension System in Malaysia

2016 ◽  
Vol 9 (4) ◽  
pp. 43 ◽  
Author(s):  
Kamal Halili Hassan ◽  
Rohani Abdul Rahim ◽  
Fariza Ahmad ◽  
Tengku Noor Azira Tengku Zainuddin ◽  
Rooshida Rahim Merican ◽  
...  
Keyword(s):  
Private Sector ◽  
Financial Literacy ◽  
Pension System ◽  
Retirement Planning ◽  
Private Pension ◽  
Pension Scheme ◽  
Age Group ◽  
Goal Clarity ◽  
Voluntary Basis ◽  
Private Pension System

<p class="MsoNormal" style="text-align: justify;">Problems have been identified pertaining to retirement scheme of the private sector employees in Malaysia where there is no legislated pension system in force. As a result of that, pension scheme and savings are more of a voluntary basis; although the principle is good but in practice many retirees suffer financially during their retirement. The objectives of this study are to examine factors contributing to individual’s retirement planning behavior and the private pension system in the private sector in Malaysia. Retirement planning behaviour in this study was measured with series of questions on behaviour about retirement planning. A total of 500 working individuals from private sectors in the age group of 40 years and above had participated in this study. The results identified several significant variables in the prediction of retirement planning among working individuals in Malaysia, including individual who had higher levels of education, higher levels of income, financial literacy, retirement goal clarity and attitude towards retirement. There is a correlation between retirement planning behavior and saving for old aged. As a response to the result collected from the survey, a legal proposition is put forward to address issues of pension during retirement among private sector’s employees.</p>

University students and retirement planning: never too early

2019 ◽  
Vol 37 (3) ◽  
pp. 775-797
Author(s):  
Paola Bongini ◽  
Doriana Cucinelli
Keyword(s):  
Young People ◽  
University Students ◽  
Financial Literacy ◽  
Pension Fund ◽  
Pension System ◽  
Retirement Planning ◽  
Policy Implications ◽  
Standard Of Living ◽  
Content Type ◽  
The Many

Purpose The purpose of this paper is to investigate the main predictors of university students’ intention to invest in a pension fund: an understanding of how young people perceive retirement planning is relevant for its policy implications. Design/methodology/approach The authors apply the theory of planned behaviour (TPB) proposed by Ajzen (1985) which explains how human behaviour is guided, and provides a framework to explore the underlying beliefs that affect one’s behaviours. Findings The evidence on a sample of Italian university students highlights that the TPB predictors, pension knowledge, money management and the highest level of financial literacy, positively influence their intention to invest in a pension fund. Research limitations/implications Although the authors are aware of the limitations of the analysis (limited to a specific country and to a specific financial product), the authors believe that the study has the merit of offering a number of ideas for further research. In fact, there are few contributions in the literature that identify the intention of young people to save for retirement. The study sheds light on this important issue. However, because it is limited to Italian university students, its findings cannot be generalised. Practical implications The study can be used by regulators, financial educators, counsellors and public institutions to increase the propensity of young people to plan for their future and guide them towards attitudes and behaviours most likely to increase their savings for retirement. Social implications The evidence suggests that regulators, institutions and educators should improve the information that is provided to families first and to the younger generations – at school, for instance – about the functioning of the pension system. The survey’s findings emphasise that university students are generally unaware of the many reforms to the system while believing that their state pensions will be sufficient to maintain a retirement standard of living that is the same as the standard of living achieved during their working lives. Originality/value In the authors’ knowledge, there are not studies that focus on the youngs’ intention to invest in a pension fund. The authors believe that millennials are the most hitted by the Fornero’s reform and understand which predictors affect this intention can allow to drive the decision in investing in these important financial tools.

scholarly journals Retirement Preparedness: How Important Is Being Financially Literate?

2020 ◽  
Vol 4 (Supplement_1) ◽  
pp. 445-445
Author(s):  
Mengya Wang ◽  
Suzanne Bartholomae
Keyword(s):  
Financial Literacy ◽  
Retirement Planning ◽  
The Other ◽  
Financial Security ◽  
Lower Odds ◽  
Highly Educated ◽  
Retirement Preparedness ◽  
The Us ◽  
Risk Takers ◽  
Policies And Programs

Abstract Financial security in retirement is a major concern for many Americans. Numerous studies document that Americans are not prepared for retirement, with financial illiteracy cited as one reason Americans fail to plan. Employing data from the 2018 National Financial Capability Study (N=27,091), this study investigates actual financial literacy (AFL) and perceived financial literacy (PFL) and how combinations of this measure influences retirement planning, and varies based on years from retirement. This study found relatively low financial literacy and retirement preparedness levels among the US sample, even for those pre-retirees ages 55 to 64. Individually, PFL and AFL increased as one approached retirement. When combined, adults nearing retirement (55 to 64) comprised the greatest proportion of the high AFL and high PFL (29.9%) group compared to adults 20 years or more from retirement (18-44) who largely made up the low AFL and PFL (48%) group. Based on a logistic regression, adults closest to retirement (ages 55 to 64) are more likely to be planning compared to the other groups, as are adults who were financially confident, risk takers, highly educated, males, and white. Compared to adults with high AFL and high PFL, adults with low AFL and low PFL, or a combination (low PFL and high AFL, high PFL and low AFL) have lower odds of preparing for retirement. Both PFL and AFL influences retirement planning, and PFL may be as important as AFL. Our highlight the importance of policies and programs to support Americans with retirement planning.

scholarly journals Financial Literacy Key to Retirement Planning in Malaysia

2012 ◽  
Vol 2 (1) ◽  
Author(s):  
Folk Jee Yoong ◽  
Beh Loo See ◽  
Diana-Lea Baronovich
Keyword(s):  
Financial Literacy ◽  
Retirement Planning

scholarly journals Financial Literacy, Retirement Planning and Household Wealth

2012 ◽  
Vol 122 (560) ◽  
pp. 449-478 ◽  
Author(s):  
Maarten C.J. van Rooij ◽  
Annamaria Lusardi ◽  
Rob J.M. Alessie
Keyword(s):  
Financial Literacy ◽  
Retirement Planning ◽  
Household Wealth

scholarly journals Financial literacy and retirement planning in Canada

2015 ◽  
Vol 16 (3) ◽  
pp. 277-296 ◽  
Author(s):  
DAVID BOISCLAIR ◽  
ANNAMARIA LUSARDI ◽  
PIERRE-CARL MICHAUD
Keyword(s):  
Educational Attainment ◽  
Financial Literacy ◽  
Retirement Planning ◽  
Retirement Savings ◽  
Risk Diversification ◽  
Percentage Points ◽  
Lower Educational Attainment

AbstractIn this paper, we draw on internationally comparable survey evidence on financial literacy and retirement planning in Canada to investigate how financially literate Canadians are and how financial literacy is linked to retirement planning. We find that 42% of respondents are able to correctly answer three simple questions measuring knowledge of interest compounding, inflation, and risk diversification. This is consistent with evidence from other countries, and Canadians perform relatively well in comparison with Americans but worse than individuals in other countries, such as Germany. Among Canadian respondents, the young and the old, women, minorities, and those with lower educational attainment do worse, a pattern that has been consistently found in other countries as well. Retirement planning is strongly associated with financial literacy; those who responded correctly to all three financial literacy questions are 10 percentage points more likely to have retirement savings.

scholarly journals The Effect of Financial Literacy and Financial Inclusion on Retirement Planning

2019 ◽  
Vol 1 (1) ◽  
pp. 49-58
Author(s):  
Rahmat Aryo Baskoro ◽  
◽  
Rensi Aulia ◽  
Keyword(s):  
Regression Analysis ◽  
Linear Regression ◽  
Multiple Linear Regression ◽  
Financial Literacy ◽  
Quantitative Method ◽  
Linear Regression Analysis ◽  
Retirement Planning ◽  
Multiple Linear Regression Analysis ◽  
Financial Inclusion ◽  
Monthly Income

This study aims to determine the effect of financial literacy and financial inclusion on retirement planning. This study used a quantitative method with 236 respondents and processed by the method of multiple linear regression analysis. The results of the study show that financial literacy and financial inclusion have a significant effect on retirement planning, means that the higher financial literacy and financial inclusion of a person, the better their retirement planning. In addition, the results of the study showed that respondents were dominated by moderate financial literacy levels with a percentage of 55.08%, moderate financial inclusion levels with a percentage of 57.20% and high retirement planning levels with presentations of 52.54% of the total respondents. Researchers also conduct additional research by choosing one of the demographic factors, which is monthly income. The results that monthly earnings also influence retirement planning where the higher a person's monthly income, the better their retirement planning.

scholarly journals The Influence of Financial Literacy, Risk Aversion and Expectations on Retirement Planning and Portfolio Allocation in Malaysia

2017 ◽  
Vol 19 (3) ◽  
pp. 267 ◽  
Author(s):  
Nurul Shahnaz Mahdzan ◽  
Amrul Asraf Mohd-Any ◽  
Mun-Kit Chan
Keyword(s):  
Risk Aversion ◽  
Financial Literacy ◽  
Retirement Planning ◽  
Portfolio Allocation ◽  
Kuala Lumpur ◽  
Future Expectations ◽  
Risky Assets ◽  
Demographic Subgroups ◽  
Behavioural Aspects ◽  
Self Administered Questionnaire

The two objectives of this paper are to examine the effect of financial literacy, risk aversion and expectations on retirement planning; and, to investigate the effect of these antecedents on the retirement portfolio allocation. Data was collected via a self-administered questionnaire from a sample of 270 working individuals in Kuala Lumpur, Malaysia. Logistic and ordered probit regressions were employed to analyse the first and second objective, respectively.  The results from the logistic regression indicate that future expectations significantly influence the probability of planning for retirement. Meanwhile, individuals with higher financial literacy and lower risk aversion are more likely to hold risky assets in their retirement portfolios. Subsequently, two-sample t-test and one-way ANOVA tests were conducted to further examine the differences in financial literacy, risk aversion and expectations, across demographic subgroups. The study contributes to the literature by holistically incorporating the behavioural aspects that affect retirement planning and by exploring an uncharted issue of retirement planning—namely, the retirement portfolio allocation.

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