Financial sophistication in the older population
This paper examines data on financial sophistication among the U.S. older population, using a special-purpose module implemented in the Health and Retirement Study. We show that financial sophistication is deficient for older respondents (aged 55+). Specifically, many in this group lack a basic grasp of asset pricing, risk diversification, portfolio choice, and investment fees. Subpopulations with particular deficits include women, the least educated, persons over the age of 75, and non-Whites. In view of the fact that people are increasingly being asked to take on responsibility for their own retirement security, such lack of knowledge can have serious implications.
Download full text files
12_08.pdf (446 KB)
Export metadata
Additional Services
| Author: | Annamaria Lusardi, Olivia S. Mitchell, Vilsa Curto |
|---|---|
| URN: | urn:nbn:de:hebis:30:3-256577 |
| Series (Serial Number) | CFS working paper series (2012, 08) |
| Publisher: | CFS |
| Place of publication: | Frankfurt am Main |
| Document Type: | Working Paper |
| Language: | English |
| Year of first Publication: | 2012 |
| Publishing Institution: | Univ.-Bibliothek Frankfurt am Main |
| Tag: | Financial Knowledge; Male and Female Differences; Older Population; Question Framing; Retirement Security |
| Institutes: | Center for Financial Studies (CFS) |
| Dewey Decimal Classification: | 330 Wirtschaft |
| JEL-Classification: | D91 Intertemporal Consumer Choice; Life Cycle Models and Saving |
| G11 Portfolio Choice; Investment Decisions | |
| Sammlungen: | Universitätspublikationen |
| Licence (German): |  Veröffentlichungsvertrag für Publikationen ohne Print on Demand |
