Ornella Ricci|Massimo Caratelli
Financial literacy, trust and retirement planning
Roma Tre University|Roma Tre University
abstract study complex relationship financial literacy retirement planning trust financial institutions using data 2010 bank italy survey household income wealth impact financial literacy retirement planning wellestablished issue existing empirical literature main contribution proving financial knowledge impacts retirement planning also decisions entering private pension scheme devoting severance pay private pension scheme adding consideration trust poses serious econometric concerns since financial literacy trust financial institutions likely endogenous presence two endogenous regressors renders identification causality difficult solution keep financial literacy endogenous include models exogenous regional indicator social capital similar one adopted guiso et al 2004 proxy level trust counterparts financial contract geographical area main findings show trust positive influence decisions enter private pension scheme devote severance pay private pension scheme