Work

Financial Literacy and Financial Behavior at Older Ages

Year: 2023

Type: book-chapter

Abstract: Recent research documents that people are increasingly entering old age with more debt than ever before and with little or no retirement planning. This chapter examines some reasons why older people’s financial behaviors depart from the predictions of the life-cycle model, where the latter predicts that older persons would be at the peak of their wealth accumulation process and manage their money so as not to run out of savings in retirement. Drawing on the rapidly growing literature on financial literacy and financial behavior at older ages, we highlight findings on financial literacy patterns. We also document that “better” financial behaviors are strongly associated with greater financial literacy in later life. We close with some thoughts regarding limitations, policy implications, and next steps.

Source: Routledge eBooks

DOI: 10.4324/9781003150398-37

Authors: Olivia S. Mitchell, Annamaria Lusardi

Institutions: National Bureau of Economic Research, University of Pennsylvania, George Washington University

Language: English

Topic: Financial Literacy, Pension, Retirement Analysis

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W4383682797

FWCI: 149.1

Cites: 36

Cited by: 63

Related to: 10