Financial literacy and retirement planning in chile*

Natalia Garabato Moure

Journal of Pension Economics and Finance, 2016, vol. 15, issue 2, 203-223

Abstract: This paper studies the relationship between financial literacy and retirement planning in Chile, a country with mandatory defined contribution pension plans at the core of its retirement policy. Using a novel dataset, we find that very few Chileans are planning for their retirement and that the levels of financial literacy are remarkably low with only 47% of the population understand compound interest and only 18% understand the concept of inflation. We also find a positive and significant relationship between financial literacy and retirement planning suggesting that investments in financial education could have a substantial impact on the way people think about retirement and therefore on their ability to reach retirement with adequate resources.

Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:cup:jpenef:v:15:y:2016:i:02:p:203-223_00

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