Financial Illiteracy Meets Conflicted Advice:
               <i>The Case of Thrift Savings Plan Rollovers</i>

Turner, John A.; Klein, Bruce W.; Stein, Norman P.

doi:10.3905/jor.2016.3.4.047

Cited by 17 publications

(12 citation statements)

References 5 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Many programmes are narrow dimensional, failing to align with special objectives and lack an overall campaign strategy. Although several countries have invested so much in promoting the campaign with regard to financial knowledge to their citizens, there is still great work to do as financial obligations and challenges to individuals increases on a daily basis (Turner, Klein, & Stein, 2016;Lusardi & Mitchell, 2014).…”

Section: Global Initiative Of Financial Literacy Educationmentioning

confidence: 99%

The National Strategy on Financial Literacy: A Conceptual Review of South African Perspectives

Mbukanma¹,

Rena²,

Prinsloo³

2019

J. Rev. Global Econ.

View full text Add to dashboard Cite

The relevance of financial literacy in the lives of individuals has attracted several stakeholders from different parts of the world in the quest to provide the required financial knowledge for households to manage their financial wellbeing. Accordingly, previous studies show that financial literacy serves as a mechanism to enhance the ability of households to better allocate financial resources with regard to savings and wealth creation over their lifetimes in a world of uncertainty and imperfect insurance. Thus, this study provides a literature review on global initiatives, strategies and programmes on financial literacy as well the perspectives of financial literacy programmes in South Africa. As such, it is the objective of this study to ascertain from previous literatures the factors that hinders the smooth delivery of financial literacy programmes in South Africa. Thus, the researcher employed a descriptive literature review method to achieve this objective. The findings of this study identifies that there is a growing need for a continuous financial literacy campaign especially in South Africa as the aging populations are confronted with intensified pressure on standardised plan for future financial well-being. However, the challenges of financial literacy programmes in South Africa was ascertained which forms part of the factors that hinders smooth campaign of financial literacy programmes in South Africa. Hence, this study recommends practical intervention factors of financial literacy programme in South Africa, which is expected to assist policy makers in formulating the right financial knowledge delivery programmes in South Africa.

show abstract

Section: Global Initiative Of Financial Literacy Educationmentioning

confidence: 99%

The National Strategy on Financial Literacy: A Conceptual Review of South African Perspectives

Mbukanma¹,

Rena²,

Prinsloo³

2019

J. Rev. Global Econ.

View full text Add to dashboard Cite

show abstract

“…Recent work also shows that advisors sometimes influence workers to shift their retirement funds into high fee investment vehicles, casting doubt on the less-financially literate to rely on financial advice (Turner, Klein and Stein, 2015). Other studies show that financial literacy and financial advice are complements rather than substitute (Collins, 2012).…”

Section: Why Financial Literacy Mattersmentioning

confidence: 99%

Financial Literacy and Economic Outcomes: Evidence and Policy Implications

Mitchell¹,

Lusardi²

2015

JOR

104

View full text Add to dashboard Cite

This paper reviews what we have learned over the past decade about financial literacy and its relationship to financial decision-making around the world. Using three questions, we have surveyed people in several countries to determine whether they have the fundamental knowledge of economics and finance needed to function as effective decision-makers. We find that levels of financial literacy are low not only in the United States. but also in many other countries including those with well-developed financial markets. Moreover, financial illiteracy is particularly acute for some demographic groups, especially women and the less-educated. These findings are important since financial literacy is linked to borrowing, saving, and spending patterns. We also offer new evidence on financial literacy among high school students drawing on the 2012 Programme for International Student Assessment implemented in 18 countries. Last, we discuss the implications of this research for policy.

show abstract

“…Employees are likely to encounter financial counselors who have a conflict of interest and who may provide advice that is not in their best interests (Turner et al, 2016). Most employees are aware of the risks involved in receiving pension savings advice and the bias that can arise in their decision-making regarding pension savings (Jolls et al, 1997).…”

Section: Discussion and Summarymentioning

confidence: 99%

“…However, existing regulatory standards, as they currently are enforced, are not adequate to protect pension participants from seriously bad advice. Moreover, the fiduciary standard cannot guarantee good advice, and bad advice can be very costly (Turner et al, 2016).…”

Section: Discussion and Summarymentioning

confidence: 99%

Decision-Making in Defined Contribution Pension Plans: The Case of Israel

Rubinstein-Levi¹

2021

JABE

View full text Add to dashboard Cite

Research suggests that the DC saving method, which is a self-guided saving method, is a contributor to exacerbation in retirees' poverty and income inequality. Economists lobby governments to provide the public with information regarding pension savings to improve the situation, and many studies conclude that employees can improve their decisions substantially by receiving pension advice. This study analyzes Israeli data of four field studies among over 1,500 subjects and the Israeli social survey data of the Israeli Central Bureau of Statistics (ICBS). The findings of the study indicate that providing employees with information regarding pension savings does not encourage them to more pro-actively manage their pension savings nor receive advice from a professional counselor. Surprisingly, the findings suggest that employees are more willing to receive pension savings advice from a counselor on behalf of the state than from a counselor who is not necessarily on behalf of the state.

show abstract

Financial Illiteracy Meets Conflicted Advice: The Case of Thrift Savings Plan Rollovers

Cited by 17 publications

References 5 publications

The National Strategy on Financial Literacy: A Conceptual Review of South African Perspectives

The National Strategy on Financial Literacy: A Conceptual Review of South African Perspectives

Financial Literacy and Economic Outcomes: Evidence and Policy Implications

Decision-Making in Defined Contribution Pension Plans: The Case of Israel

Contact Info

Product

Resources

About