What does ‘Big Three’ tell us about retirement planning skills?

ABSTRACT

In this paper, we present the results of financial knowledge assessment from a nationwide survey carried out in Poland in 2019. To measure this phenomenon, we use the well-grounded scale, the ‘Big Three’ financial literacy questions, proposed by Mitchell and Lusardi. The results are similar to those of studies in other countries. However, we find that financial literacy scores poorly predict reasonable answers to the retirement planning question. We present hypotheses to explain this finding and recommend potential solutions.

KEYWORDS:

• Retirement planning
• financial literacy
• big three

JEL CLASSIFICATION:

• I22
• J32

Disclosure statement

The authors report no potential conflict of interest.

Data availability statement

The data that support the findings of this study are openly available in Harvard Dataverse at https://doi.org/10.7910/DVN/WBXEHE

Correction Statement

This article has been republished with minor changes. These changes do not impact the academic content of the article.

Notes

¹ Hereafter: BIG3.

Additional information

Funding

This work was supported by the National Science Centre (Poland) under [Grant DEC-2017/25/B/HS4/00186].