Financial Literacy, Retirement Planning and Household Wealth
2012/02/07 by Maarten C.J. van Rooij, M.C.J. van Rooij, Annamaria Lusardi +2 · 940 citations
Business, Management and Accounting · Economics, Econometrics and Finance · Social Sciences · #Business #Economics #Equity (law) #Finance #Financial Literacy, Pension, Retirement Analysis #Financial literacy #Financial market #Financial plan #Housing Market and Economics #Insurance, Mortality, Demography, Risk Management #Net worth #Retirement planning #Stock (firearms) #Stock market
paper · open access · doi:10.1111/j.1468-0297.2012.02501.x
published in The Economic Journal 122(560), 449-478 (Oxford University Press)
openalex publication_date 2012/02/07 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/01
Abstract
Relying on comprehensive measures of financial knowledge, we provide evidence of a strong positive association between financial literacy and net worth, even after controlling for many determinants of wealth. We discuss two channels through which financial literacy might facilitate wealth accumulation. First, financial knowledge increases the likelihood of investing in the stock market, allowing individuals to benefit from the equity premium. Second, financial literacy is positively related to retirement planning and the development of a savings plan has been shown to boost wealth.
Citations
Cited by
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