Financial Literacy and Pension Plan Participation in Italy

di Elsa Fornero e Chiara Monticone; WP CeRP N. 111/11

Il paper è stato realizzato nell’ambito del progetto Financial Literacy: Evidence and Implications for Retirement Planning, Saving Behavior, and Financial Education Programs”, finanziato da NETSPAR, ed è stato presentato al workshop “Financial Literacy around the World” (FLat World) (Collegio Carlo Alberto, 20-21 dicembre 2010).


By requiring individuals to decide whether to participate in (newly established) pension funds, how much to contribute and how to invest their retirement wealth, pension reforms have raised concerns about the ability of households to deal with financial decisions. Using the Bank of Italy’s Survey on Household Income and Wealth, our empirical analysis shows that most individuals lack knowledge of basic concepts such as interest rates and inflation. Males, the more educated and residents in the Centre-North possess higher literacy. As for the effects, financial literacy has a positive and significant impact on the probability of pension plan participation.


Data pubblicazione: marzo 2011

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