financial literacy Archives

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

When Tested, Most Students Lack Financial Literacy, New Study Finds

A graduate wearing a cap and gown holds a diploma with sunlight filtering through trees in the background, symbolizing achievement and new beginnings.

Only 14.5% of undergraduates surveyed were proficient on a basic financial literacy test, revealing the pressing need for schools to prioritize/enhance financial education! Fortunately, Federal Reserve employees fared better, as reported here.…Read More

Women’s Guide to Building Wealth (2024)

Hands typing on a laptop, with a notebook, pen, and coffee cup nearby, on a pink background. Text reads "Women''s Guide to Building Wealth: Tips to Succeed" by Raina He, MarketWatch.

The gender wage gap, motherhood penalty, and lower credit scores can hinder retirement wealth building, shows Professor Olivia S. Mitchell in recent MarketWatch piece. Despite these obstacles, women can enhance their financial paths.…Read More

A rude awakening: Lack of financial literacy hurts the young. What about older people?

A person with short gray hair and glasses sits on a leather sofa, holding a laptop and gazing thoughtfully into the distance.

Wharton Professor Olivia S. Mitchell reminds us that financial literacy isn’t just for the young – without it, we also face retirement risk. Learn about financial literacy for aging retirees here.…Read More

When you retire, should you keep your money with your employer’s 401(k) plan?

Desk items related to financial planning, including a calculator, glasses, a notebook with "401k" written, post-it notes, a magnifying glass, and a pen on a pink background.

In a recent research study, Prof. Olivia S. Mitchell, John Turner, and Catherine Reilly weigh the pros and cons of remaining in an employer-sponsored 401(k) plan after retirement. The debate continued in Reilly’s November 2023 blog post, picked up in the Star Tribune.…Read More

Financial literacy: The importance of a new field

An open book with a tree growing out of it, with branches and leaves made of money, symbolizing knowledge leading to wealth. In the background are blurred chalkboards.

Researchers Annamaria Lusardi of Stanford’s SIEPR and Olivia S. Mitchell of Wharton’s Pension Research Council founded the new field of financial literacy, key for personal finance teaching and retirement policy; see their blog VoxEU.…Read More

The case for financial literacy education

A smiling adult and child sitting on a sofa, holding a pink piggy bank, suggesting themes of family, saving, and financial planning.

Global financial literacy levels remain low, and early intervention with better programs can enhance financial decision-making and wellbeing, report Annamaria Lusardi of GWU and GFLEC and Olivia S. Mitchell of the Wharton School and the Pension Research Council, via NPR. …Read More

Understanding basics of financial literacy is a must

A stack of books, a jar labeled "Save" with coins and bills, a graduation cap, colored pencils in a holder, and a rolled diploma tied with a red ribbon, symbolizing education and financial savings.

Understanding personal finance and risk management matters for financial wellbeing, yet many lack basic financial knowledge report researchers Annamaria Lusardi of the George Washington University School of Business and Olivia Mitchell of the Wharton School, via the Star Tribune.…Read More

Pandemic-Era Debt Weakened Retirement Readiness

A person sitting on the floor with a shocked expression, holding a calculator and looking at documents or bills, possibly representing financial stress.

Financial illiteracy and debt are key factors constraining retirement readiness, report researchers Andrea Hasler and Annamaria Lusardi of George Washington University, and Olivia S. Mitchell of the Wharton School, via Think Advisor.…Read More