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Participants in defined contribution (DC) retirement plans rarely adjust their portfolio allocations, suggesting that their investment choices and consequent money flows are sticky and not discerning. Yet, the participants' inertia could be offset by the DC plan sponsors, who adjust the plan's...
Persistent link: https://www.econbiz.de/10013073952
personal assets. In this paper, we investigate the relationship between financial literacy and household net worth, relying on … comprehensive measures of financial knowledge designed for a special module of the Dutch Central Bank Household Survey (DHS). Our … savings plan has been shown to boost wealth. Overall, financial literacy, both directly and indirectly, is found to have a …
Persistent link: https://www.econbiz.de/10013121050
We present new evidence on financial literacy and retirement preparation in the Netherlands based on two surveys conducted before and after the onset of the financial crisis. We document that while financial knowledge did not increase from 2005 to 2010, significantly more individuals planned for...
Persistent link: https://www.econbiz.de/10013124236
Individuals are increasingly in charge of their own financial security after retirement. But how well-equipped are individuals to make saving decisions; do they possess adequate financial literacy, are they informed about the most important components of saving plans, do they even plan for...
Persistent link: https://www.econbiz.de/10012772702
A substantial literature exists on the impact of pension schemes, both public and private, on the level of household … private savings and about the magnitude of the displacement effect. Using data for 8,279 Canadian households, and estimates of … pension wealth (both private and social security) which we construct for each household in the sample, the estimated …
Persistent link: https://www.econbiz.de/10012763063
critical for understanding the relationship between aggregate fertility and household savings. First, we document that parents … household savings. Then, we construct an OLG model that parametrically matches the PE empirical evidence. Finally, we extend the … aggregate fertility on household savings …
Persistent link: https://www.econbiz.de/10013053493
Two competing explanations for why consumers have trouble with financial decisions are gaining momentum. One is that people are financially illiterate since they lack understanding of simple economic concepts and cannot carry out computations such as computing compound interest, which could...
Persistent link: https://www.econbiz.de/10013130966
Proposals for mandatory private saving accounts differ in the degree of investment discretion that they provide to individual savers, and in their provisions for annuitization of accumulated assets. With respect to investment choices, some argue that individuals must be prevented from investing...
Persistent link: https://www.econbiz.de/10012789302
Deciding how much to save for retirement can be complicated. Drawing on a field experiment conducted with the Department of Defense, we study whether such complexity depresses participation in an employer-sponsored retirement saving plan. We find that simplifying one dimension of the enrollment...
Persistent link: https://www.econbiz.de/10013290384
This paper reviews the literature on international comparative household finance. The paper presents summary statistics … on household balance sheets for 13 developed countries, and uses these statistics to discuss common features and … contrasts across countries. The paper then discusses retirement savings, investments in risky assets, unsecured debt, and …
Persistent link: https://www.econbiz.de/10012997290