NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

Anders Anderson

Stockholm School of Economics
Drottninggatan 98
Stockholm, Sweden

E-Mail: Anders.Anderson@hhs.se
Institutional Affiliation: Stockholm School of Economics

NBER Working Papers and Publications

September 2018Who Feels the Nudge? Knowledge, Self-Awareness and Retirement Savings Decisions
with David T. Robinson: w25061
Using a financial literacy survey of Swedish pension investors matched to actual retirement savings decisions, we argue that respondents can be broken into three groups: those who are financially literate, those who mistakenly believe they are financially literate, and those who know that they are not. We examine how these groups respond differently to informational nudges encouraging them to take charge of their own investments. Investors with mistaken beliefs responded to the nudge, and were more likely to work with mass-market advisors who steer them into high-fee funds. They underperform as a result. By comparison, those who either possess financial literacy or else understand that they do not possess financial literacy were less likely to respond to the nudge. They avoided advisors, s...
July 2015Precautionary Savings, Retirement Planning and Misperceptions of Financial Literacy
with Forest Baker, David T. Robinson: w21356
We measure financial literacy among LinkedIn members, complementing standard questions with additional questions that allow us to gauge self-perceptions of financial literacy. Average financial literacy is surprisingly low given the demographics of our sample: fewer than two-thirds of CFOs, CEOs, and COOs complete the test correctly. Financial literacy, precautionary savings and retirement planning are positively correlated, but this is mostly driven by perceived, not actual, literacy: controlling for self-perceptions, actual literacy has low predictive power. Perceptions drive decision-making among low-literacy respondents and are associated with mistaken beliefs about financial products and less willingness to accept financial advice.

Published: Anders Anderson & Forest Baker & David T. Robinson, 2017. "Precautionary savings, retirement planning and misperceptions of financial literacy," Journal of Financial Economics, .

 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us