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Retirement Financial Behaviour: How Important Is Being Financially Literate?

Author

Listed:
  • J. C. Hauff

    (University of Gothenburg)

  • A. Carlander

    (University of Gothenburg)

  • T. Gärling

    (University of Gothenburg)

  • G. Nicolini

    (Tor Vergata)

Abstract

Using Item Response Theory to analyse survey data from a representative sample of 551 Swedish citizens, a new 16-question measure of fact-based financial literacy is developed and validated. Uni-dimensionality of the measure is verified, and expected correlations are observed with an existing measure of fact-based financial literacy, a measure of subjective financial literacy or confidence, and age, gender, and income. A significant impact of fact-based and subjective financial literacy are found on three time-ordered stages of individuals’ retirement behaviour: planning, saving, and investment management. It is concluded that policies increasing final literacy are important in different phases of the life cycle.

Suggested Citation

  • J. C. Hauff & A. Carlander & T. Gärling & G. Nicolini, 2020. "Retirement Financial Behaviour: How Important Is Being Financially Literate?," Journal of Consumer Policy, Springer, vol. 43(3), pages 543-564, September.
    • Handle: RePEc:kap:jcopol:v:43:y:2020:i:3:d:10.1007_s10603-019-09444-x
    DOI: 10.1007/s10603-019-09444-x
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