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Financial literacy and retirement planning in Japan*

Published online by Cambridge University Press:  11 October 2011

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

Keywords

D12D91H31I21Financial literacyretirement planningwealth accumulationfinancial educationchildren's bankssavings promotion campaign in Japan
Type
Articles
Information
Journal of Pension Economics & Finance , Volume 10 , Issue 4 , October 2011 , pp. 637 - 656
Copyright
Copyright © Cambridge University Press 2011

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