Financial Literacy and Retirement Planning in Sweden

by Johan Almenberg and Jenny Säve-Söderbergh; CeRP WP N. 112/11

The paper has been realized for the Netspar Theme grant project  Financial Literacy: Evidence and Implications for Retirement Planning, Saving Behavior, and Financial Education Programs”, and presented at the CeRP workshop “Financial Literacy around the World” (FLat World) (Collegio Carlo Alberto, 20-21 December 2010).


We examine the relationship between financial literacy and retirement planning in a representative sample of  Swedish adults. We find significant differences in financial literacy between planners and non-planners.  Financial literacy levels are also lower among older people, women and those with low education or earnings. When we control for demographic variables we do not find an association between a narrow measure of  financial literacy and planning, but with a broader measure the association is positive and statistically significant. We relate these findings to features of the Swedish pension system.


Published: March 2011

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