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Influence of Financial Education on Retirement Security: Evidence from the state of Illinois

Author

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  • Habila, Murna

Abstract

ABSTRACT In this paper, we examined the role of financial literacy in retirement security for low-income minorities in Illinois. This paper also discusses extend of success among adults, couples, and elderly individuals, specifically, we develop a literature background on retirement savings and how it has been used to promote retirement security in Illinois. As one variable towards achieving retirement security, to increase the chances of a more successful outcome for minority persons faced with impending retirement issues? These are the questions this research attempts to answer. Towards understanding these issues properly, we investigate into financial literacy in Illinois. This study seeks to study how workers gain financial education required make financial decisions towards retirement also for retirement wellbeing we also review the predominant method of savings by evaluating whether people tried to achieve success through these methods, family, and place of work or financial advisors. To figure how much they need to save for retirement. Also, what are the factors that are detrimental to retirement planning in Illinois? Finally, we will find out what financial education are interrelated to others, that rely on formal methods such as retirement calculators, retirement seminars as oppose to others that rely on family / relatives or co-workers . Are those that have a higher financial literacy exposure are more likely to save more and out of debt, invest in bonds, stocks more as compared to others with lower financial education?

Suggested Citation

  • Habila, Murna, 2015. "Influence of Financial Education on Retirement Security: Evidence from the state of Illinois," MPRA Paper 73988, University Library of Munich, Germany, revised 05 Jun 2016.
  • Handle: RePEc:pra:mprapa:73988
    as

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    File URL: https://mpra.ub.uni-muenchen.de/73988/3/MPRA_paper_73988.pdf
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    References listed on IDEAS

    as
    1. Julie Agnew & Lisa R. Szykman & Stephen P. Utkus & Jean A. Young, 2007. "Literacy, Trust and 401(k) Savings Behavior," Working Papers, Center for Retirement Research at Boston College wp2007-10, Center for Retirement Research, revised May 2007.
    2. Annamaria Lusardi & Olivia S Mitchelli, 2007. "Financial Literacy and Retirement Preparedness: Evidence and Implications for Financial Education," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 42(1), pages 35-44, January.
    3. Maarten C.J. van Rooij & Annamaria Lusardi & Rob J.M. Alessie, 2012. "Financial Literacy, Retirement Planning and Household Wealth," Economic Journal, Royal Economic Society, vol. 122(560), pages 449-478, May.
    4. Lusardi, Annamaria & Mitchell, Olivia S., 2011. "Financial literacy around the world: an overview," Journal of Pension Economics and Finance, Cambridge University Press, vol. 10(04), pages 497-508, October.
    5. Annamaria Lusardi & Olivia Mitchell, 2006. "Financial Literacy and Retirement Preparedness: Evidence and Implications for Financial Education Programs," Working Papers wp144, University of Michigan, Michigan Retirement Research Center.
    6. Diamond, P. A. & Hausman, J. A., 1984. "Individual retirement and savings behavior," Journal of Public Economics, Elsevier, vol. 23(1-2), pages 81-114.
    7. Annamaria Lusardi, 2007. "Household Saving Behavior: The Role of Literacy, Information and Financial Education Programs," CeRP Working Papers 65, Center for Research on Pensions and Welfare Policies, Turin (Italy).
    8. repec:ecj:econjl:v:122:y:2012:i::p:449-478 is not listed on IDEAS
    9. Sandra F. Braunstein & Carolyn Welch, 2002. "Financial literacy: an overview of practice, research, and policy," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Nov, pages 445-457.
    10. Chen, Haiyang & Volpe, Ronald P., 1998. "An Analysis of Personal Financial Literacy Among College Students," Financial Services Review, Elsevier, vol. 7(2), pages 107-128.
    11. Eugenio Zucchelli & Anthony Harris & Nigel Rice & Andrew M. Jones, 2007. "Health and Retirement among Older Workers," Health, Econometrics and Data Group (HEDG) Working Papers 07/19, HEDG, c/o Department of Economics, University of York.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Keywords: Retirement security; Education; Low-income; Retirement wellbeing; Retirement security Keywords: Retirement security; Education; Low-income; Retirement wellbeing; Retirement security;

    JEL classification:

    • Z19 - Other Special Topics - - Cultural Economics - - - Other

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