(UM09-10) - Financial Literacy and Financial Sophistication: Evidence from the 2008 HRS
Financial literacy is lacking among older individuals in the United States and financial sophistication can be even scarcer. Given that individuals are increasingly required to take on responsibility for their financial well-being after retirement, this lack of knowledge has become a serious problem. This project will analyze new data on financial literacy and financial sophistication from the 2008 Health and Retirement Study. By linking these data with information collected in 2004, the project will offer the first empirical evidence on how literacy changes over age and time. Moreover, it will assess how financial sophistication affects household financial decision-making at an advanced age.