May 2016, , ,
The role of financial literacy in financial decisions and retirement preparedness among seniors and near-seniors
This study makes use of microdata from the 2014 Canadian Financial Capability Survey to examine financial knowledge and financial confidence among seniors (aged 65 and over) and near-seniors (aged 55 to 64). The study considers how knowledge and confidence are related to three domains of financial behaviour that are critical for retirement preparedness: money and debt management, future planning and savings, and best financial practices and protection measures. The results of the quantitative analysis suggest that financial confidence has important effects on retirement preparedness among seniors and near-seniors.