Justine Hastings|Olivia S. Mitchell
How Financial Literacy and Impatience Shape Retirement Wealth and Investment Behaviors
two competing explanations consumers trouble financial decisions gaining momentum one people financially illiterate since lack understanding simple economic concepts cannot carry computations computing compound interest could cause make suboptimal financial decisions second impatience presentbias might explain suboptimal financial decisions people persistently choose immediate gratification instead taking advantage larger longterm payoffs use experimental evidence chile explore factors appear related poor financial decisions results show measure impatience strong predictor wealth investment health financial literacy also correlated wealth though appears weaker predictor sensitivity framing investment decisions policymakers interested enhancing retirement wellbeing would well consider importance factors