We examine individuals’ retirement behaviour in response to changes in the State Pension eligibility age (SPe-age) introduced in UK Pension Acts. Our findings show that the annual probability of retirement reduced significantly in response to a one-year increase in SPe-age, by 8.2pp and 6.4pp for men and women, respectively. They also show that younger individuals can adjust their Expected Age of Retirement (EAR) downwards in response to an increase in their SPe-age. Thus, while an increase in the SPe-age induces individuals to postpone actual retirement, it does not necessarily lead to certain groups of individuals to revise their EAR upwards, which could result in suboptimal retirement planning. The latter can be problematic for those with low occupational pension wealth and/or individuals who rely disproportionately on State Pension. Our findings suggest the need for targeted communication campaigns aimed at specific groups of prime aged workers to improve their retirement planning.

We explore debt and debt management among older Americans (ages 51–61 years) using the 2018 National Financial Capability Study. Though these individuals should have been at the peak of their retirement savings, we show that many were heavily indebted, often due to unpaid medical bills and student loans. Additionally, fewer than half (43%) could correctly answer three basic financial literacy questions; importantly, less financially literate people were more likely to hold excessive debt, be contacted by debt collectors, and carry medical debt or student loans. Our findings show that, even before the pandemic, a sizable proportion of older Americans was financially distressed, underscoring the need for researchers and policymakers to devote attention to specific types of debt that burden the older population. Particularly vulnerable groups include African-Americans, women, and the least-educated.

Demographic change is one of Germany’s most pressing social and economic challenges. Using data from a representative telephone survey, we analyze how well informed respondents are about the magnitude of demographic change and what factors influence the accuracy of their beliefs. We find that respondents tend to overestimate the old-age dependency ratio when considering the current and long-term demographic situation separately. However, their beliefs regarding the change of the old-age dependency ratios over the considered period are not far from the projected change. A better understanding of the German statutory pension insurance plays an important role for more accurate beliefs.

Using data from 74 countries, we uncover important differences in the association between financial literacy and preferences by the level of economic development. Patience is salient and positively associated to financial literacy in wealthier countries, i.e., countries with GDP per capita above the sample median. This association is not driven by a multitude of institutional or cultural factors known to be related to financial literacy. In impoverished countries, we document a higher level of financial literacy in countries with higher levels of risk-taking but lower levels of trust, positive reciprocity, and altruism. Countries’ legal origin drives most of the association with risk-taking, trust, and positive reciprocity while their religious composition drives the association between altruism and financial knowledge. Our findings underscore that financial education programs need to be tailored to the cultural aspect of group preferences and suggest what type of traits policies and programs ought to be reinforced in poorer countries.

Following European pension reforms, the responsibility for old-age provision has increasingly shifted from the state to the individual. This study examines how behavioral norms and perceptions of parents’ or grandparents’ financial situation influence participation in the voluntary second pillar. Using survey data from two Italian provinces with high coverage of supplementary pension funds, the analysis shows that norms transmitted through family and friends strongly predict participation, whereas workplace norms matter only for women. Perceived financial hardship of older relatives increases both awareness of retirement planning and the likelihood of enrollment, underscoring the role of the social environment.