(UM05-09) - Planning, Financial Literacy, and Retirement Wealth
Annamaria Lusardi and Olivia S. Mitchell
Many Americans are poorly informed about their Social Security and pensions and confront substantial shortfalls in retirement wealth. To better understand how workers plan and save for retirement, we have devised a special module for the 2004 Health and Retirement Study. This module is intended to explore whether and how people undertake retirement planning, and how planning is related to financial literacy. Our project will be the first to analyze the new data gathered in this module. We expect to derive new insights about how workers collect the information they need to make saving decisions, how they make these decisions, and the degree of financial literacy that informs their decisions.