Nudging Financial and Demographic Literacy: Experimental Evidence from an Italian Pension Fund

37 Pages Posted: 4 Jan 2018 Last revised: 10 Dec 2018

See all articles by Francesco C. Billari

Francesco C. Billari

Bocconi University - Department of Policy Analysis and Public Management

Carlo A. Favero

Bocconi University - Department of Finance; Centre for Economic Policy Research (CEPR)

Francesco Saita

Bocconi University - Department of Finance

Date Written: November 1, 2017

Abstract

In this article, we present and test experimentally a low-cost, Internet-based, financial literacy intervention program that we designed for implementation with the largest industrial pension fund in Italy. The program, Finlife (Financial Education and Planning for a Long Life) included: 1) an instructional video on financial, and demographic, literacy, provided online; 2) an experimental design that explicitly allowed to evaluate the impact of the online content on financial and demographic literacy, as well as on short-term behavioral changes; 3) a follow-up that allowed to assess the subsequent choice of investment lines within the pension fund. Finlife was designed to be a low-cost and scalable approach to increase financial and demographic literacy, consistently with a ‘nudge’ philosophy. Our findings show that Finlife delivered a substantially and statistically significant increase in financial and demographic literacy, as well as a push towards seeking more information on financial markets and choices related to financial planning, and becoming more active in financial decisions.

Keywords: pensions, financial literacy, demographic literacy, field experiment, Finlife

JEL Classification: D91

Suggested Citation

Billari, Francesco C. and Favero, Carlo A. and Saita, Francesco, Nudging Financial and Demographic Literacy: Experimental Evidence from an Italian Pension Fund (November 1, 2017). BAFFI CAREFIN Centre Research Paper No. 67. Available at SSRN: https://ssrn.com/abstract=3095919 or http://dx.doi.org/10.2139/ssrn.3095919

Francesco C. Billari

Bocconi University - Department of Policy Analysis and Public Management ( email )

Via Roentgen 1
Milan, 20136
Italy

Carlo A. Favero

Bocconi University - Department of Finance ( email )

Via Roentgen 1
Milano, MI 20136
Italy

HOME PAGE: http://www.igier.unibocconi.it\favero

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Francesco Saita (Contact Author)

Bocconi University - Department of Finance ( email )

Via Roentgen 1
Milano, MI 20136
Italy

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
117
Abstract Views
691
rank
254,067
PlumX Metrics