Financial Literacy and Pension Plan Participation in Italy
AbstractBy requiring individuals to decide whether to participate in (newly established) pension funds, how much to contribute and how to invest their retirement wealth, pension reforms have raised concerns about the ability of households to deal with financial decisions. Using the Bank of Italy's Survey on Household Income and Wealth, our empirical analysis shows that most individuals lack knowledge of basic concepts such as interest rates and inflation. Males, the more educated and residents in the Centre-North possess higher literacy. As for the effects, financial literacy has a positive and significant impact on the probability of pension plan participation.
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Bibliographic InfoPaper provided by Center for Research on Pensions and Welfare Policies, Turin (Italy) in its series CeRP Working Papers with number 111.
Length: 38 pages
Date of creation: Mar 2011
Date of revision:
Financial literacy; retirement planning; pension plan participation;
Other versions of this item:
- Fornero, Elsa & Monticone, Chiara, 2011. "Financial literacy and pension plan participation in Italy," Journal of Pension Economics and Finance, Cambridge University Press, vol. 10(04), pages 547-564, October.
- D91 - Microeconomics - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving
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- NEP-AGE-2011-04-16 (Economics of Ageing)
- NEP-ALL-2011-04-16 (All new papers)
- NEP-EUR-2011-04-16 (Microeconomic European Issues)
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