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Financial literacy and retirement planning in Japan*

Published online by Cambridge University Press:  11 October 2011

SHIZUKA SEKITA
Affiliation:
Kyoto Sangyo University (e-mail: sekita@cc.kyoto-su.ac.jp)

Abstract

The level of financial literacy is not high in Japan. Although a majority of respondents were able to correctly answer a simple question about interest rates, more than half were not able to correctly answer a question about risk diversification. Many respondents stated they did not know the answer to the financial literacy questions, which might indicate that Japanese are very cautious and only answer when confident in their response. Women, the young, and those with lower incomes and lower educational attainment have the lowest levels of financial literacy, and financial literacy increases the probability of having a retirement savings plan.

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Articles
Copyright
Copyright © Cambridge University Press 2011

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References

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