Economic‐Financial Literacy and (Sustainable) Pension Reforms: Why the Former is a Key Ingredient for the Latter

22 Pages Posted: 25 Sep 2015

See all articles by Elsa Fornero

Elsa Fornero

University of Turin (Italy) - Department of Economics and Statistics; Center for Research on Pensions and Welfare Policies (CeRP); Netspar

Date Written: February 28, 2014

Abstract

Financial literacy has important implications for economic reforms. Reforms are meant to change people’s behavior and their effectiveness crucially depends on the ability of citizens to recognize and generally approve, their necessity, their general design and their “sense of direction”. Without basic understanding by citizens, reforms risk having little or no effect or even being reversed. Informed judgment about economic reforms requires information and numeracy as well as literacy. This is particularly true of pension reforms because of their profound impact on people’s life plans. The 2011 Italian pension reform is a case in point.

Suggested Citation

Fornero, Elsa, Economic‐Financial Literacy and (Sustainable) Pension Reforms: Why the Former is a Key Ingredient for the Latter (February 28, 2014). Netspar Discussion Paper No. 02/2014-098, Available at SSRN: https://ssrn.com/abstract=2665089 or http://dx.doi.org/10.2139/ssrn.2665089

Elsa Fornero (Contact Author)

University of Turin (Italy) - Department of Economics and Statistics ( email )

Via Po, 53
Torino, 10124
Italy
+39-011-6706076 (Phone)

Center for Research on Pensions and Welfare Policies (CeRP)

Via Real Collegio, 30
Moncalieri, Turin
Italy

Netspar

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

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