Financial Literacy and Retirement

Working Paper
           
        WP 2006-144

Project #:   UM06-05 MR
RC







Financial Literacy and Retirement
Preparedness: Evidence and Implications for
Financial Education
Annamaria Lusardi and Olivia S. Mitchell


Michigan
University of
Research
Retirement
Center




“Financial Literacy and Retirement Preparedness: Evidence
and Implications for Financial Education Programs”



Annamaria Lusardi
Dartmouth College and NBER

Oiliva S. Mitchell
Wharton School





December 2006


Michigan Retirement Research Center
University of Michigan
P.O. Box 1248
Ann Arbor, MI 48104
http://www.mrrc.isr.umich.edu/
(734) 615-0422



Acknowledgements

This work was supported by a grant from the Social Security Administration through the
Michigan Retirement Research Center (Grant # 10-P-98358-5).   The findings and
conclusions expressed are solely those of the author and do not represent the views of the
Social Security Administration, any agency of the Federal government, or the Michigan
Retirement Research Center.  

Regents of the University of Michigan
David A. Brandon, Ann Arbor; Laurence B. Deitch, Bingham Farms; Olivia P. Maynard, Goodrich;
Rebecca McGowan, Ann Arbor; Andrea Fischer Newman, Ann Arbor; Andrew C. Richner, Grosse Pointe
Park; S. Martin Taylor, Gross Pointe Farms; Katherine E. White, Ann Arbor; Mary Sue Coleman, ex
officio


Financial Literacy and Retirement Preparedness: Evidence and
Implications for Financial Education Programs


Annamaria Lusardi and Olivia S. Mitchell


Abstract

Economists are beginning to investigate the causes and consequences of financial
illiteracy to better understand why retirement planning is lacking and why so many
households arrive close to retirement with little or no wealth. Our review reveals that
many households are unfamiliar with even the most basic economic... [continues]

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