Skip to main content
    • Aa
    • Aa

Financial literacy and retirement preparation in the Netherlands*


We present new evidence on financial literacy and retirement preparation in the Netherlands based on two surveys conducted before and after the onset of the financial crisis. We document that while financial knowledge did not increase from 2005 to 2010, in 2010 significantly more individuals report having thought about their retirement. Using information on financial conditions and financial knowledge of relatives, we find a positive causal effect of financial literacy on retirement preparation. Employing the panel feature of our dataset, we show that the effect of financial knowledge on retirement planning is bound to be positive.

Corresponding author
Hide All

Rob J.M. Alessie, School of Economics and Business, University of Groningen, P.O. Box 800, 9700 AV, Groningen (, Maarten C.J. van Rooij, Economics and Research Division, De Nederlandsche Bank, P.O. Box 98, 1000 AB, Amsterdam (, and Annamaria Lusardi, The George Washington University School of Business, 2201 G Street, NW, Washington, DC 20052 ( We thank Franco Peracchi, the participants of the CeRP Workshop on Financial Literacy around the World (Turin, Italy, December 2010), the participants of the Mathematical and Statistical Methods for Actuarial Sciences and Finance conference (Ravello, Italy, April 2010) for useful comments and suggestions, and Audrey Brown for editorial assistance. We are grateful to the staff of CentERdata, in particular Stephanie Mertens, for their assistance in setting up the survey and the field work. Financial support from Netspar is gratefully acknowledged. The views expressed in this paper are those of the authors and do not necessarily reflect the views of the Dutch Central Bank.

Linked references
Hide All

This list contains references from the content that can be linked to their source. For a full set of references and notes please see the PDF or HTML where available.

D. Aigner (1973) Regression with a binary independent variable subject to errors of observation. Journal of Econometrics, 1: 4960.

B. Arruñada (2010) Protestants and Catholics: similar work ethic, different social ethic. Economic Journal, 120: 890918.

A. Lusardi and O. Mitchell (2007) Baby boomers retirement security: the role of planning, financial literacy and housing wealth. Journal of Monetary Economics, 54: 205224.

A. Lusardi and O. Mitchell (2011) Financial literacy and planning: implications for retirement wellbeing. In: A. Lusardi and O. Mitchell (eds), Financial Literacy: Implications for Retirement Security and the Financial Marketplace. Oxford: Oxford University Press, forthcoming.

S. McCrea , N. Liberman , Y. Trope and S. Sherman (2008) Construal level and procrastination. Psychological Science, 19: 13081314.

M. Van Rooij , C. Kool and H. Prast (2007) Risk-return preferences in the pension domain: are people able to choose? Journal of Public Economics, 91: 701722.

M. Van Rooij , A. Lusardi and R. Alessie (2011 a) Financial literacy and stock market participation. Journal of Financial Economics, 101(2): 449472.

M. Van Rooij , A. Lusardi and R. Alessie (2011 b) Financial literacy and retirement planning in the Netherlands. Journal of Economic Psychology, forthcoming.

Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Journal of Pension Economics & Finance
  • ISSN: 1474-7472
  • EISSN: 1475-3022
  • URL: /core/journals/journal-of-pension-economics-and-finance
Please enter your name
Please enter a valid email address
Who would you like to send this to? *



Altmetric attention score

Full text views

Total number of HTML views: 3
Total number of PDF views: 179 *
Loading metrics...

Abstract views

Total abstract views: 466 *
Loading metrics...

* Views captured on Cambridge Core between September 2016 - 29th June 2017. This data will be updated every 24 hours.