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Financial Literacy and Retirement Planning in Japan

Author

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  • Shizuka Sekita

    () (Istitute of Social and Economic Research, Osaka University)

Abstract

Using micro data on Japanese households, I provide an overview of the level of financial literacy in Japan, analyze the determinants of financial literacy and link financial literacy to retirement planning. Overall, the level of financial literacy is low in Japan. Surprisingly, many Japanese responded that they did not know the answer in at least one question. In addition, I found that females, the young, and individuals with lower incomes and lower education levels are financially illiterate. Moreover, as expected, I found that financial literacy increases the probability of having a savings plan for retirement.

Suggested Citation

  • Shizuka Sekita, 2011. "Financial Literacy and Retirement Planning in Japan," CeRP Working Papers 108, Center for Research on Pensions and Welfare Policies, Turin (Italy).
  • Handle: RePEc:crp:wpaper:108
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    File URL: http://www.cerp.carloalberto.org/wp-content/uploads/2011/03/wp_108.pdf
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    Cited by:

    1. Antonia Grohmann & Theres Klühs & Lukas Menkhoff, 2017. "Does Financial Literacy Improve Financial Inclusion? Cross Country Evidence," Discussion Papers of DIW Berlin 1682, DIW Berlin, German Institute for Economic Research.
    2. repec:pal:compes:v:60:y:2018:i:1:d:10.1057_s41294-018-0053-9 is not listed on IDEAS
    3. KADOYA Yoshihiko & Mostafa Saidur Rahim KHAN, 2016. "Can Financial Literacy Reduce Anxiety about Life in Old Age?," Discussion papers 16076, Research Institute of Economy, Trade and Industry (RIETI).
    4. Brown, Martin & Graf, Roman, 2013. "Financial Literacy, Household Investment and Household Debt: Evidence from Switzerland," Working Papers on Finance 1301, University of St. Gallen, School of Finance.
    5. Annamaria Lusardi & Olivia S. Mitchell, 2014. "The Economic Importance of Financial Literacy: Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 52(1), pages 5-44, March.
    6. Agarwal, Sumit & Amromin, Gene & Ben-David, Itzhak & Chomsisengphet, Souphala & Evanoff, Douglas D., 2015. "Financial literacy and financial planning: Evidence from India," Journal of Housing Economics, Elsevier, vol. 27(C), pages 4-21.
    7. repec:eee:pacfin:v:43:y:2017:i:c:p:218-237 is not listed on IDEAS
    8. Shen, Chung-Hua & Lin, Shih-Jie & Tang, De-Piao & Hsiao, Yu-Jen, 2016. "The relationship between financial disputes and financial literacy," Pacific-Basin Finance Journal, Elsevier, vol. 36(C), pages 46-65.
    9. Yoshihiko Kadoya & Mostafa Saidur Rahim Khan, 2016. "What Determines Financial Literacy in Japan?," ISER Discussion Paper 0982, Institute of Social and Economic Research, Osaka University.
    10. Marco Nieddu & Lorenzo Pandolfi, 2018. "Cutting Through the Fog: Financial Literacy and the Subjective Value of Financial Assets," CSEF Working Papers 497, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    11. Luc Arrondel, 2018. "Financial Literacy and Asset Behaviour: Poor Education and Zero for Conduct?," Post-Print hal-01784318, HAL.
    12. Beckmann, Elisabeth & Stix, Helmut, 2015. "Foreign currency borrowing and knowledge about exchange rate risk," Journal of Economic Behavior & Organization, Elsevier, vol. 112(C), pages 1-16.
    13. Grohmann, Antonia & Klühs, Theres & Menkhoff, Lukas, 2018. "Does Financial Literacy Improve Financial Inclusion? Cross Country Evidence," Rationality and Competition Discussion Paper Series 95, CRC TRR 190 Rationality and Competition.
    14. repec:bla:jconsa:v:51:y:2017:i:2:p:255-283 is not listed on IDEAS
    15. Tabea Bucher-Koenen & Annamaria Lusardi & Rob Alessie & Maarten van Rooij, 2017. "How Financially Literate Are Women? An Overview and New Insights," Journal of Consumer Affairs, Wiley Blackwell, vol. 51(2), pages 255-283, July.
    16. Yuichiro Ito & Yasutaka Takizuka & Shigeaki Fujiwara, 2017. "Portfolio Selection by Households: An Empirical Analysis Using Dynamic Panel Data Models," Bank of Japan Working Paper Series 17-E-6, Bank of Japan.
    17. repec:spr:jbecon:v:87:y:2017:i:5:d:10.1007_s11573-017-0853-9 is not listed on IDEAS
    18. Rob Clark & Rikiya Matsukura & Naohiro Ogawa, 2013. "Low fertility, human capital, and economic growth," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(32), pages 865-884, October.
    19. Annamaria Lusardi, 2012. "Numeracy, financial literacy, and financial decision-making," NBER Working Papers 17821, National Bureau of Economic Research, Inc.
    20. Rekha Reddy & Miriam Bruhn & Congyan Tan, 2013. "Financial Capability in Mexico : Results from a National Survey on Financial Behaviors, Attitudes, and Knowledge
      [Capacidades financieras en México : resultados de la encuesta nacional sobre compor
      ," World Bank Other Operational Studies 16756, The World Bank.
    21. Luca Spataro & Lorenzo Corsini, 2017. "Endogenous Financial Literacy, Saving, and Stock Market Participation," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 73(2), pages 135-162, June.
    22. Zuzana Brokesova & Andrej Cupak & Gueorgui Kolev, 2017. "Financial literacy and voluntary savings for retirement in Slovakia," Working and Discussion Papers WP 10/2017, Research Department, National Bank of Slovakia.
    23. Gabriel Garber & Sergio Mikio Koyama, 2016. "Policy-effective Financial Knowledge and Attitude Factors," Working Papers Series 430, Central Bank of Brazil, Research Department.
    24. Rayenda Khresna Brahmana & Ritzky Karina Brahmana, 2016. "The Financial Planning and Financial Literacy of ex-Malaysia Indonesian Migrant Workers," Acta Oeconomica Pragensia, University of Economics, Prague, vol. 2016(5), pages 47-59.

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