IDEAS home Printed from https://ideas.repec.org/a/taf/eurjfi/v25y2019i16p1606-1625.html
   My bibliography  Save this article

Financial literacy and voluntary savings for retirement: novel causal evidence

Author

Listed:
  • Andrej Cupák
  • Gueorgui I. Kolev
  • Zuzana Brokešová

Abstract

We utilise recent Household Finance and Consumption Survey microdata to report first causal effects of financial literacy on voluntary private pension schemes participation for a Central and Eastern European (CEE) country, namely Slovakia. Savings for retirement in the supplementary pension schemes are positively associated with financial literacy after controlling for a set of relevant socio-economic variables. One additional correctly answered financial literacy question leads to a 5.6 percentage points increase in the probability of having a voluntary pension savings plan in our ordinary least squares estimates. The causal impact of financial literacy increases to 19.5 percentage points when we address potential endogeneity problems by novel to the literature instrumental variables.

Suggested Citation

  • Andrej Cupák & Gueorgui I. Kolev & Zuzana Brokešová, 2019. "Financial literacy and voluntary savings for retirement: novel causal evidence," The European Journal of Finance, Taylor & Francis Journals, vol. 25(16), pages 1606-1625, November.
    • Handle: RePEc:taf:eurjfi:v:25:y:2019:i:16:p:1606-1625
    DOI: 10.1080/1351847X.2019.1641123
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1351847X.2019.1641123
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1351847X.2019.1641123?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Qian, Yuting & Tan, Weiqiang & Wu, Jingbo, 2024. "Household financial literacy and retirement planning in rural China," International Review of Financial Analysis, Elsevier, vol. 93(C).
    2. Cupák, Andrej & Fessler, Pirmin & Hsu, Joanne W. & Paradowski, Piotr R., 2022. "Investor confidence and high financial literacy jointly shape investments in risky assets," Economic Modelling, Elsevier, vol. 116(C).
    3. Andrej Cupák & Pirmin Fessler & Maria Silgoner & Elisabeth Ulbrich, 2021. "Exploring Differences in Financial Literacy Across Countries: The Role of Individual Characteristics and Institutions," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(2), pages 409-438, December.
    4. Trang M. T. Phung & Quoc N. Tran & Phuong Nguyen‐Hoang & Nhut H. Nguyen & Tho H. Nguyen, 2023. "The role of learning motivation on financial knowledge among Vietnamese college students," Journal of Consumer Affairs, Wiley Blackwell, vol. 57(1), pages 529-563, January.
    5. Pavel Ciaian & Andrej Cupak & Pirmin Fessler & d'Artis Kancs, 2022. "Environmental-Social-Governance Preferences and the Holding of Crypto-Assets," EERI Research Paper Series EERI RP 2022/07, Economics and Econometrics Research Institute (EERI), Brussels.
    6. K. Majamaa & A.-R. Lehtinen, 2022. "An Analysis of Finnish Debtors Who Defaulted in 2014–2016 Because of Unsecured Credit Products," Journal of Consumer Policy, Springer, vol. 45(4), pages 595-617, December.
    7. Bongini, Paola & Cucinelli, Doriana & Soana, Maria Gaia, 2023. "Insurance holdings: Does individual insurance literacy matter?," Finance Research Letters, Elsevier, vol. 58(PC).
    8. Pavel Ciaian & Andrej Cupak & Pirmin Fessler & d’Artis Kancs, 2022. "Environmental and Social Preferences and Investments in Crypto-Assets," JRC Research Reports JRC129919, Joint Research Centre.
    9. Zuzana Brokesova & Andrej Cupak & Anthony Lepinteur & Marian Rizov, 2021. "Wealth, Assets and Life Satisfaction: A Metadata Instrumental-Variable Approach," Working and Discussion Papers WP 4/2021, Research Department, National Bank of Slovakia.
    10. Muhammad Hussain & Farzan Yahya & Muhammad Waqas, 2021. "Does strong governance stimulate the effect of economic freedom and financial literacy on financial inclusion? a cross-country evidence," Future Business Journal, Springer, vol. 7(1), pages 1-10, December.
    11. Bingzheng Chen & Ze Chen, 2023. "Financial Literacy Confidence and Retirement Planning: Evidence from China," Risks, MDPI, vol. 11(2), pages 1-14, February.
    12. Vieira, Kelmara Mendes & Rosenblum, Tamara Otilia Amaral & Matheis, Taiane Keila, 2022. "And tomorrow, how will it be? Developing a Financial Preparation for Retirement Scale (FPRS)," Journal of Behavioral and Experimental Finance, Elsevier, vol. 35(C).
    13. Andrej Cupak & Pirmin Fessler & Joanne W. Hsu & Piotr R. Paradowski, 2020. "Confidence, financial literacy and investment in risky assets: Evidence from the Survey of Consumer Finances," Working and Discussion Papers WP 4/2020, Research Department, National Bank of Slovakia.
    14. Gallego-Losada, Rocío & Montero-Navarro, Antonio & Rodríguez-Sánchez, José-Luis & González-Torres, Thais, 2022. "Retirement planning and financial literacy, at the crossroads. A bibliometric analysis," Finance Research Letters, Elsevier, vol. 44(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:eurjfi:v:25:y:2019:i:16:p:1606-1625. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/REJF20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.