Financial Literacy: Evidence and Implications for Financial Education

This paper discusses financial literacy in the United States in the context of retirement planning. Findings show that financial illiteracy in the population is widespread, particularly among vulnerable demographic groups such as the least educated, women, and minorities. The paper concludes with implications for policymakers as they consider financial education programs, including the importance of targeting specific groups, simplifying financial decision-making, and providing specific steps and guidance to the least financially knowledgeable.