financial literacy Archives

Does Financial Literacy Decline with Age?

An elderly person with gray hair looks contemplative, surrounded by floating USD bills against a neutral background. They hold some money, suggesting thoughts about finances.

Both financial and health literacy decline with age for older adults, boosting their risk of making mistakes, reports Wharton Professor, Olivia S. Mitchell, via Knowledge at Wharton. …Read More

Differences in Longevity Perceptions and Financial Decision-Making

A detailed sculpture of a bearded figure holding a staff and a peach, possibly representing longevity or wisdom.

Retirement planning and saving differ across racial/ethnic groups due to different longevity expectations, report Abigail Hurwitz and Orly Sade of the Hebrew University of Jerusalem, and Olivia S. Mitchell at the University of Pennsylvania. Via RetireSecure blog.…Read More

Preparing for and Betting on Longer Lives

An illustration of a brain on a colorful landscape with stars and a sun, framed by the question "Will humans live forever?" in bold yellow text.

Is there an upper limit on human lifespans? Some forecast extreme longevity, but others are less optimistic, explains TIAA’s Benny Goodman. Via RetireSecure blog.…Read More

Olivia S. Mitchell to Receive CIO’s 2024 Lifetime Achievement Award

A person with short red hair and wearing glasses stands outdoors with arms crossed. They wear a blue top and jeans, and there is greenery and a bench in the background.

For groundbreaking research influencing public policy on pensions and highlighting the critical role of financial literacy, Olivia S. Mitchell, Wharton Professor and Director of the Pension Research Council at the University of Pennsylvania, will be honored with CIO’s 2024 Lifetime Achievement Award. — Via Chief Investment Officer. …Read More

Should You Roll Over Your 401(k) When You Retire? Here’s How to Think About It

A clipboard titled "401K Rollovers" with a pair of glasses and a wooden gavel placed on a wooden surface, representing legal and financial concepts.

Who should roll over a 401(k) into an IRA? The answer depends on your level of financial sophistication, explain researchers Olivia S. Mitchell of the Wharton School, Catherine Reilly of CM Reilly Associates, and John A. Turner of the Pension Policy Center, via RetireSecure blog. …Read More

How Behavioral Factors Shape Retirement Wealth

A person writing near stacks of coins and figurines of two elderly individuals. This represents financial planning for retirement.

The 2024 Pension Research Council symposium explored how behavioral factors and financial literacy shape retirement planning, saving, and spending. Read more here.…Read More

CEPAR Partner Investigator Olivia S. Mitchell on reducing longevity risk in retirement

An older couple sitting on a couch, reviewing documents with a tablet. They appear focused and engaged in their work.

In this article, Wharton Professor and CEPAR Partner Investigator Olivia S. Mitchell discusses longevity risks in aging societies and how financial literacy shapes their well-being in later life. Deferred annuities can help protect lifetime income.…Read More

ERISA Advisory Council Explores Annuity Default Options in DC Plans

A person is holding a red umbrella over a pink piggy bank, symbolizing financial protection or saving money.

At an ERISA Advisory Council hearing for the Dept. of Labor, experts recommended including annuities in defined contribution plans to hedge against longevity risk. Olivia S. Mitchell, a Wharton School professor, supported a default annuity structure that begins payments later in life to simplify financial decisions for older participants.…Read More

Secure 2.0 may help student borrowers more with loans than with retirement.

A scale with a graduation cap, book, and diploma on one side balancing with rolled U.S. currency notes on the other, symbolizing education versus monetary value.

New NBER/PRC study shows SECURE 2.0 rule letting firms match student loan payments with retirement contributions boosts loan repayment and builds retirement savings. Wharton Prof. Olivia S. Mitchell predicts the program to be attractive for higher-skilled.…Read More

5 Biggest Regrets of Retirees

A desk scene with laptops, a notebook, a calculator, and documents, illustrating people working on retirement planning, with coffee and eyeglasses nearby.

The top financial regrets of older Americans? Not saving enough, retiring too early, and not buying long-term care insurance. Also, many regret not purchasing annuities and claiming Social Security too early. Insights from Abigail Hurwitz and Olivia S. Mitchell emphasize the importance of proactive financial planning. Read more here. …Read More