How financial literacy shapes the demand for financial advice at older ages

Hugh Hoikwang Kim, Raimond Maurer and Olivia Mitchell

The Journal of the Economics of Ageing, 2021, vol. 20, issue C

Abstract: We investigate how financial literacy shapes older Americans’ demand for financial advice. Using an experimental module fielded in the Health and Retirement Study, we show that financial literacy strongly improves the quality but not the quantity of financial advice sought. In particular, more financially literate people seek financial help from professionals. This effect is more pronounced among older people and those with more wealth and more complex financial positions. Our analysis result implies that financial literacy and financial advisory services are complementary with, rather than substitutes for, each other.

Keywords: Financial advice; Financial literacy; Aging; Financial management (search for similar items in EconPapers)
JEL-codes: D14 G41 G53 J26 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joecag:v:20:y:2021:i:c:s2212828x21000220

DOI: 10.1016/j.jeoa.2021.100329

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