Financial literacy, financial judgement, and retirement self-efficacy of older trustees of self-managed superannuation funds

Joanne K Earl, Paul Gerrans, Anthony Asher and Julia Woodside
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Joanne K Earl: University of New South Wales, Australia
Paul Gerrans: The University of Western Australia, Australia

Australian Journal of Management, 2015, vol. 40, issue 3, 435-458

Abstract: We investigate relationships between retirement self-efficacy, financial literacy and financial judgement across a sample of older trustees of self-managed superannuation funds (SMSFs). Aside from demographic factors, we explore self-rated dementia behaviours, general mental ability, mastery and risk tolerance. An increasing number of older people are controlling significant assets, particularly those who elect to become self-managed superannuation fund trustees. The ageing population, including self-managed superannuation fund trustees, is susceptible to cognitive decline with advancing age. We find that cognitive ability and self-rated behavioural dementia symptoms both relate to financial literacy. Variance in retirement self-efficacy was explained by age, cognitive ability, financial literacy, mastery and self-rated behavioural dementia symptoms. Those reporting dementia symptoms appear more vulnerable to making poor financial judgements. Findings have important implications for financial literacy interventions and the monitoring of on-going cognitive decline.

Keywords: Ageing; cognitive ability; dementia; financial decision-making; financial literacy; retirement savings (search for similar items in EconPapers)
JEL-codes: D14 E21 G11 G23 I10 J26 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:ausman:v:40:y:2015:i:3:p:435-458

DOI: 10.1177/0312896215572155

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