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Financial Literacy and Retirement Planning in New Zealand

Author

Listed:
  • Diana Crossan

    (Retirement Commission, New Zealand)

  • David Feslier

    () (Retirement Commission, New Zealand)

  • Roger Hurnard

    (Retirement Commission, New Zealand)

Abstract

We compare levels of financial literacy in New Zealand with levels in five other countries and between the general adult population of New Zealand, people of Maori ethnicity and, more particularly, the people of Ngai Tahu, a Maori tribe based mainly in the South Island of New Zealand who have initiated a long-term savings scheme and are also providing financial education courses for members of their tribe. Our findings indicate that, while the financial knowledge level of Maori people generally is lower than for non-Maori (controlling for demographic and economic factors), there is little difference between the financial knowledge of the people of Ngai Tahu and other New Zealanders. Finally, the analysis finds financial literacy (defined as getting all three test questions correct) is not significantly associated with thinking about planning for retirement ‘a lot’, although it appears to be significant for other measures of financial achievement. This result could reflect the dominant role of New Zealand’s universal public pension in providing retirement income security.

Suggested Citation

  • Diana Crossan & David Feslier & Roger Hurnard, 2011. "Financial Literacy and Retirement Planning in New Zealand," CeRP Working Papers 113, Center for Research on Pensions and Welfare Policies, Turin (Italy).
  • Handle: RePEc:crp:wpaper:113
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    File URL: http://www.cerp.carloalberto.org/wp-content/uploads/2011/03/wp_113.pdf
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    Cited by:

    1. repec:pal:compes:v:60:y:2018:i:1:d:10.1057_s41294-018-0053-9 is not listed on IDEAS
    2. 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.
    3. 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.
    4. 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.
    5. Luc Arrondel, 2018. "Financial Literacy and Asset Behaviour: Poor Education and Zero for Conduct?," Post-Print hal-01784318, HAL.
    6. repec:bla:jconsa:v:51:y:2017:i:2:p:255-283 is not listed on IDEAS
    7. 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.
    8. Barrett, Alan & Mosca, Irene & Whelan, Brendan J., 2013. "(Lack of) Pension Knowledge," IZA Discussion Papers 7596, Institute for the Study of Labor (IZA).
    9. repec:spr:jbecon:v:87:y:2017:i:5:d:10.1007_s11573-017-0853-9 is not listed on IDEAS
    10. 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.
    11. 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.

    More about this item

    Keywords

    Financial literacy; retirement planning; financial education; Maori; Ngai Tahu; New Zeland.;

    JEL classification:

    • D9 - Microeconomics - - Micro-Based Behavioral Economics

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