Anders Anderson|Forest Baker|David T. Robinson
Precautionary savings, retirement planning and misperceptions of financial literacy
Stockholm School of Economics|Swedish House of Finance|LinkedIn (United States)
measure financial literacy among linkedin members complementing standard questions additional questions allow us gauge selfperceptions financial literacy average financial literacy surprisingly low given demographics sample fewer twothirds chief financial officers chief executive officers chief operating officers complete test correctly financial literacy precautionary savings retirement planning positively correlated mostly driven perceived actual literacy controlling selfperceptions actual literacy low predictive power perceptions drive decisionmaking among lowliteracy respondents associated mistaken beliefs financial products less willingness accept financial advice