Annamaria Lusardi|Olivia S. Mitchell|Vilsa Curto
Financial literacy and financial sophistication in the older population
University of Pennsylvania|Stanford University
using specialpurpose module implemented health retirement study evaluate financial sophistication american population age 50 combine several financial literacy questions overall index highlight questions best capture financial sophistication examine sensitivity financial literacy responses framing effects results show many older respondents financially sophisticated fail grasp essential aspects risk diversification asset valuation portfolio choice investment fees subgroups notable deficits include women least educated nonwhites age 75 view fact retirees increasingly must take responsibility retirement security meager levels knowledge potentially serious negative implications