“Retirement Decisions, Eligibility and Financial Literacy”

by Sara Burrone, Elsa Fornero, Mariacristina Rossi; CeRP WP 163/16

In this work, we analyze if and to what extent financial literacy has an impact on workers’ retirement
decisions. We do so with reference to Italy, a country that has undergone important pension reforms in the last two decades. We use the Survey on Household Income and Wealth (SHIW) in the period 2006 to 2010, for which we have information on financial literacy. Our findings show that financially literate workers are more inclined to postpone retirement when they are (at least partially) enrolled in a DC scheme, Conversely, financial literacy does not seem to affect the retirement plans of workers who are still covered by the more generous DB formula.

Published: July 2016