Financial literacy and knowledge of the retirement income system in Canada

Abstract This paper examines financial literacy in Canada using a dataset from early 2023 that measures the knowledge of middle-aged Canadians regarding their retirement income system. We first document important financial literacy differences across gender, age, education, and labor market status....

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Bibliographic Details
Published in:Journal of Financial Literacy and Wellbeing 2023, Vol.1 (3), p.450-485
Main Authors: Boisclair, David, Busby, Colin, d’Astous, Philippe
Format: Text Resource
Language:English
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Summary:Abstract This paper examines financial literacy in Canada using a dataset from early 2023 that measures the knowledge of middle-aged Canadians regarding their retirement income system. We first document important financial literacy differences across gender, age, education, and labor market status. Using detailed questions on the four main aspects of the retirement income system, we then show a strong correlation between financial literacy and the knowledge of the retirement system in Canada. Finally, we provide evidence that general financial literacy and knowledge of the retirement system matter for retirement preparation, by showing that Canadians with higher financial literacy scores and better knowledge of the retirement system are more likely to have a plan for retirement.
ISSN:2753-3212
2753-3212
DOI:10.1017/flw.2024.4