Is the Belgian youth ready to save for retirement under a defined contribution pension system?

Abstract

La reproduction ou représentation de cet article, notamment par photocopie, n'est autorisée que dans les limites des conditions générales d'utilisation du site ou, le cas échéant, des conditions générales de la licence souscrite par votre établissement. Toute autre reproduction ou représentation, en tout ou partie, sous quelque forme et de quelque manière que ce soit, est interdite sauf accord préalable et écrit de l'éditeur, en dehors des cas prévus par la législation en vigueur en France. Il est précisé que son stockage dans une base de données est également interdit.Abstract -The paper analyses levels of financial literacy among university students in a Belgian University and links them to their retirement savings preferences based a logit model of data collected through a survey. Both dimensions are crucial since a reform of the pension system has increased the importance of individual retirement savings decisions at an early age. We find that financial literacy is relatively high in our sample but that there is heterogeneity in how it impacts savings for retirement decisions, driven by socio-demographic dimensions. Some groups are clearly at risk of not saving enough under the new pension system, including among the highly financially literate population.

Design and Evaluation among Young Adults of a Financial Literacy Scale Focused on Key Financial Decisions

“…Students enrolled in other programs reflect significantly lower FL levels. They are less familiar with financial conceptions and find it more challenging to learn about financial literacy [10,[42][43][44][45][46][47][48][49]. The study specialization of a student affects their numeracy level.…”

Savings and financial literacy: a review of selected literature

“…Most of the empirical research on financial literacy and savings has relied on representative adult samples (Cupák, Kolev and Brokešová 2019;Ramalho and Forte 2019). Other studies have analyzed students (Bongini and Cucinelli 2019;de Cecco and Estache 2016;Potrich, Vieira and Mendes-Da-Silva 2016), millennials (Yong, Yew and Wee 2018), groups with higher-than-average financial literacy such as teachers (Zulaihati, Susanti and Widyastuti 2020) and US Federal Reserve System collaborators (Clark et al 2014).…”