Retirement Financial Behaviour: How Important Is Being Financially Literate?

Hauff, Jeanette Carlsson; Carlander, Anders; Gärling, Tommy; Nicolini, Gianni

doi:10.1007/s10603-019-09444-x

Cited by 59 publications

(61 citation statements)

References 61 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…This research provides the basis for several further developments which could consider the role of other individual-level characteristics as personality traits, overconfidence, experience, risk attitude, numeracy, financial literacy (Hauff et al 2020), graph literacy (Okan et al 2016) in modulating information processing, and product evaluations. Moreover, future studies might explore other phases of the decision-making rather than visual attention and observe behaviour related to actual choice.…”

Section: Discussionmentioning

confidence: 96%

Gender-Related Variability in Information Processing of Disclosure Documents

et al. 2021

View full text Add to dashboard Cite

Disclosure is used worldwide as a tool to increase transparency and help investors to make their decisions, thus partially overcoming asymmetric information in financial markets. This research seeks to explore gender-related variability in visual attention allocation to the Key Investor Information Document, and in the evaluation of product financial attractiveness. The study exploits the eye-tracking methodology to collect neural data, responding to the call for considering new data sources. The analysis shows that men tend to dedicate more attention to the sections Objectives and Past performance while women spend more time to scan the sections Risk-reward profile and Costs and charges; When evaluating product financial attractiveness, women tend to evaluate them as poorly financially attractive more often than men. Results reveal the existence of gender-related variability in the visual search strategy for relevant information, which, in turn, can impact on the phase of product evaluation. These findings highlight the professional responsibility of regulators and supervisors to monitor sellers and marketers’ behaviours when they interact with consumers. Moreover, this study could provide support to develop financial disclosure documents considering individual differences and ensuring that adequate attention is allocated by investors to all financial information sources, thus raising the level of investor protection. Eventually, the study stimulates innovations to be embedded in the world-wide ongoing regulatory developments that aim at increasing transparency requirements.

show abstract

Section: Discussionmentioning

confidence: 96%

Gender-Related Variability in Information Processing of Disclosure Documents

et al. 2021

View full text Add to dashboard Cite

show abstract

“…The use of IRT to construct scales can facilitate precisely such an effort through the shared use of common “anchor” items with known existing parameter values. We concur with Huston (2010) and others (Knoll and Houts, 2012; Hauff et al ., 2020) in advocating this approach.…”

Section: Discussionmentioning

confidence: 99%

An item response theory approach to constructing and evaluating brief and in‐depth financial literacy scales

Ranyard¹,

McNair

Nicolini

et al. 2020

Journal of Consumer Affairs

View full text Add to dashboard Cite

We applied item response theory (IRT) to construct and evaluate new brief and in-depth financial literacy scales. A survey of a UK adult sample (N = 589) included 50 questions to assess knowledge about managing financial resources and competence in using personal finance-related information-including five widely used items, on interest rates, inflation, investment diversification, mortgages and bonds. IRT applied to a scale of these items identified some limitations, overcome via further iterations to construct a new brief scale with sound psychometric properties. IRT was then applied iteratively to our pool, resulting in an indepth, 20-item scale, also psychometrically sound, covering four broad financial domains: everyday money transactions; the concept of money; borrowing; and saving and investment. Parallel 10-item sub-scales were also evaluated. The validity of the new scales was demonstrated by regression analyses which found that, controlling for demographic variables, financial literacy predicted key indicators of financial well-being.

show abstract

“…Similar conclusions were drawn by Yilmazer and Scharff (2014) and Thalassinos et al (2019) whose research showed that financial planning for retirement is a lifelong process which may be constrained by financial literacy and competing demands for resources across one's life course. Hauff et al (2020) demonstrated that financial literacy potentially influences retirement financial behaviour entailing planning, saving, and investment management. This paper also considers other factors determining savings-related financial behaviour, including saving for old age.…”

Section: Literature Reviewmentioning

confidence: 99%

Old-Age Savings Behaviour - Is Gender an Important Factor?

Krupa¹,

Walczak²

2021

ERSJ

View full text Add to dashboard Cite

Purpose: The purpose of this paper is to determine whether men and women exhibit different patterns of saving for old age outside the pension system and whether women's education and income determine their old-age savings behaviour. Design/Methodology/Approach: The analyses presented in this paper derive from a representative study that covered 1,000 individuals and was conducted in Poland. The chisquare test of independence (χ2 test) was used for each pair of chracteristics. Findings: The research confirmed that men and women exhibit different patterns of saving for old age. This discrepancy was confirmed in a study which concerned old-age savings and was conducted among men and women (general study) without considering the respondents' age. The general study did not prove the relationship between gender and the savings amount. In the case of the groups in which the respondents' age was taken into account, the relationship between gender and the possession of savings was confirmed in the group of respondents over 49 years of age. Women over 49 years of age save less frequently than their male peers. With regard to the relationship between gender and the savings amount in particular age groups covered in the study, our research showed that such a relationship exists in the group of respondents below 40 years of age. The analyses conducted in the women-only group demonstrate the existence of a relationship between education and the possession of old-age savings. We also confirmed that the possession of old-age savings among women depends on their personal income. Practical Implications: In order to incentivise women to save for old age, the state should encourage them to display appropriate savings behaviour and strengthen the factors influencing this behaviour. It is also necessary that educational programmes and initiatives oriented at strengthening women's financial security should be provided. Originality/Value: The studies discussed in this paper emphasise different approaches to saving for old age among men and women. This issue is becoming increasingly important from the social aspect as the non-saving women receive ever lower pensions, which can result in lack of women's financial security in inadequate pension systems.

show abstract

Retirement Financial Behaviour: How Important Is Being Financially Literate?

Cited by 59 publications

References 61 publications

Gender-Related Variability in Information Processing of Disclosure Documents

Gender-Related Variability in Information Processing of Disclosure Documents

An item response theory approach to constructing and evaluating brief and in‐depth financial literacy scales

Old-Age Savings Behaviour - Is Gender an Important Factor?

Contact Info

Product

Resources

About