Financial Sophistication in the Older Population

28 Pages Posted: 22 May 2012

See all articles by Vilsa Curto

Vilsa Curto

National Bureau of Economic Research (NBER)

Annamaria Lusardi

George Washington University - Department of Accountancy; National Bureau of Economic Research (NBER)

Olivia S. Mitchell

University of Pennsylvania - The Wharton School; University of Pennsylvania - The Wharton School, Pension Research Council; National Bureau of Economic Research (NBER)

Multiple version iconThere are 3 versions of this paper

Date Written: February 1, 2012

Abstract

This paper examines data on financial sophistication among the U.S. older population, using a special-purpose module implemented in the Health and Retirement Study.  We show that financial sophistication is deficient forolder respondents (aged 55+).  Specifically, many in this group lack a basic grasp of asset pricing, risk diversification, portofolio choice, andinvestment fees.  Subpopulations with particular deficits include women, the least education, persons over the age of 75, and non-Whites.  In view of the fact that people are increasingly being asked to take on responsibility of their own retirement security, such lack of knowledge can have serious implications.

Suggested Citation

Curto, Vilsa and Lusardi, Annamaria and Mitchell, Olivia S., Financial Sophistication in the Older Population (February 1, 2012). The Wharton School Research Paper No. 25, Available at SSRN: https://ssrn.com/abstract=2064440

Vilsa Curto (Contact Author)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Annamaria Lusardi

George Washington University - Department of Accountancy ( email )

George Washington University School of Business
Washington, DC 20052
United States

HOME PAGE: http://business.gwu.edu/profiles/annamaria-lusardi/

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Olivia S. Mitchell

University of Pennsylvania - The Wharton School ( email )

Philadelphia, PA 19104-6365
United States

University of Pennsylvania - The Wharton School, Pension Research Council ( email )

3302 Steinberg Hall-Dietrich Hall
3620 Locust Walk
Philadelphia, PA 19104-6302
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
79
Abstract Views
778
rank
296,312
PlumX Metrics