TY  - JOUR
AU  - Lusardi,Annamaria
AU  - Mitchell,Olivia S.
AU  - Curto,Vilsa
TI  - Financial Literacy and Financial Sophistication Among Older Americans
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 15469
PY  - 2009
Y2  - November 2009
UR  - http://www.nber.org/papers/w15469
L1  - http://www.nber.org/papers/w15469.pdf
N1  - Author contact info:
Annamaria Lusardi
The George Washington University
School of Business
2201 G Street, NW
Duques Hall, Suite 450E
Washington, DC 20052
Tel: 202-994-8410
E-Mail: alusardi@gwu.edu

Olivia S. Mitchell
University of Pennsylvania
Wharton School
3620 Locust Walk, St 3000 SH-DH
Philadelphia, PA 19104-6302
Tel: 215-898-0424
Fax: 215/898-0310
E-Mail: mitchelo@wharton.upenn.edu

Vilsa Curto
Harvard University
Cambridge, MA 02138
E-Mail: vilsa.curto@post.harvard.edu
AB  - This paper analyzes new data on financial literacy and financial sophistication from the 2008 Health and Retirement Study.  We show that financial literacy is lacking among older individuals and for the first time explore additional questions on financial sophistication which proves even scarcer. For this sample of older respondents over the age of 55, we find that people lack even a rudimentary understanding of stock and bond prices, risk diversification, portfolio choice, and investment fees. In view of the fact that individuals are increasingly required to take on responsibility for their own retirement security, this lack of knowledge has serious implications.
ER  -