Financial Literacy Amongst Elderly Australians

32 Pages Posted: 10 Apr 2019

See all articles by Rui Xue

Rui Xue

Bond University - Bond Business School

Adrian Gepp

Bond University - Bond Business School

Terry J. O’Neill

Bond University - Bond Business School

Steven Stern

Bond University - Bond Business School

Bruce J. Vanstone

Bond University - Bond Business School

Date Written: April 2019

Abstract

Financial illiteracy is widespread amongst the elderly. Financially illiterate people are more likely to experience asset loss and outlive their savings after retirement. This paper measures financial literacy of elderly Australians using Item Responses Theory. Using a Lasso regression, we find that younger, married males with higher income and greater net wealth are more likely to be financially literate. Better financial literacy is also associated with good health, higher educational attainment, better occupation and outright home ownership. Our findings suggest policy‐makers take action and we make informed and practicable policy recommendations.

Keywords: Financial literacy, Elderly Australians, Data analytics, IRT, Lasso

Suggested Citation

Xue, Rui and Gepp, Adrian and O’Neill, Terry J. and Stern, Steven and Vanstone, Bruce J., Financial Literacy Amongst Elderly Australians (April 2019). Accounting & Finance, Vol. 59, pp. 887-918, 2019, Available at SSRN: https://ssrn.com/abstract=3369149 or http://dx.doi.org/10.1111/acfi.12362

Rui Xue (Contact Author)

Bond University - Bond Business School

Gold Coast
Australia

Adrian Gepp

Bond University - Bond Business School ( email )

Gold Coast
Australia

Terry J. O’Neill

Bond University - Bond Business School

Gold Coast
Australia

Steven Stern

Bond University - Bond Business School

Gold Coast
Australia

Bruce J. Vanstone

Bond University - Bond Business School

Gold Coast
Australia

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