Research from Tsinghua University Has Provided New Study Findings on Risk Management (Financial Literacy Confidence and Retirement Planning: Evidence from China): Insurance – Risk Management

Insurance Daily News

2023 MAR 03 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Data detailed on risk management have been presented. According to news originating from Beijing, People’s Republic of China, by NewsRx correspondents, research stated, “Though ample empirical evidence demonstrates the relationship between objective financial literacy and retirement planning, we have a limited understanding of the role of individuals’ subjective financial literacy in their retirement planning.”

Funders for this research include National Natural Science Foundation of China; Moe (Ministry of Education in China) Project of Humanities And Social Sciences.

The news reporters obtained a quote from the research from Tsinghua University: “In this study, we examine how individuals’ financial literacy confidence bias affects their retirement planning behaviors using survey data in China. Based on the difference between respondents’ subjective and objective financial literacy from survey data, we construct measures of individuals’ financial literacy overconfidence and underconfidence for empirical analysis.”

According to the news editors, the research concluded: “Our results document the critical role of individuals’ assessment of financial literacy in their retirement planning. We find that individuals’ financial literacy overconfidence (underconfidence) significantly promotes (demotes) their retirement planning behaviors.”

For more information on this research see: Financial Literacy Confidence and Retirement Planning: Evidence from China. Risks, 2023,11(2). (Risks - http://www.mdpi.com/journal/risks). The publisher for Risks is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/risks11020046.

Our news journalists report that more information may be obtained by contacting Bingzheng Chen, Department of Finance, School of Economic and Management, Tsinghua University, Beijing 100084, People’s Republic of China. Additional authors for this research include Ze Chen.

ORCID is an identifier for authors and includes bibliographic information. The following is ORCID information for the author of this research: Ze Chen (http://orcid.org/0000-0002-8505-0626).

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