kerry-doesfinancialeducation-2006.pdf (1.51 MB)
Does financial education influence retirement savings? An examination of Australian employees
conference contribution
posted on 2006-01-01, 00:00 authored by Michael Kerry, Bruce Clayton, Marc OlynykIn order to ensure a financially secure retirement, Australians will need to plan and save for their retirement many decades before they retire.
The age pension, paid for out of Commonwealth government taxes is currently the backbone of the retirement system, but will not replace as much pre-retirement income in the future as it does today. Given the shift from the defined benefit style to the accumulation style, superannuation funds involve considerably more uncertainty, and as such, one might have thought that individuals would be saving more on their own. But personal saving outside of superannuation plans is virtually non-existent. Combine the retirement income crunch with the dramatic increase in life expectancy, and the need for careful retirement planning and sacrificing current consumption for later consumption becomes imperative for ensuring the financial security of older Australians. The hard question is whether individuals will be prepared to make the necessary sacrifices today to ensure a more secure financial future in retirement? This paper explores the willingness of individuals to make these sacrifices, and whether financial education can influence individuals in this difficult decision.
The age pension, paid for out of Commonwealth government taxes is currently the backbone of the retirement system, but will not replace as much pre-retirement income in the future as it does today. Given the shift from the defined benefit style to the accumulation style, superannuation funds involve considerably more uncertainty, and as such, one might have thought that individuals would be saving more on their own. But personal saving outside of superannuation plans is virtually non-existent. Combine the retirement income crunch with the dramatic increase in life expectancy, and the need for careful retirement planning and sacrificing current consumption for later consumption becomes imperative for ensuring the financial security of older Australians. The hard question is whether individuals will be prepared to make the necessary sacrifices today to ensure a more secure financial future in retirement? This paper explores the willingness of individuals to make these sacrifices, and whether financial education can influence individuals in this difficult decision.
History
Event
Southern African Accounting Association International Conference (2006 : Sun City, South Africa)Pagination
1 - 19Publisher
SAAALocation
Sun City, South AfricaPlace of publication
[Sun City, South Africa]Start date
2006-06-28End date
2006-06-30ISBN-13
9780868867175ISBN-10
0868867179Language
engNotes
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E1 Full written paper - refereed; E Conference publicationCopyright notice
2006, SAAAEditor/Contributor(s)
S FirerTitle of proceedings
SAAA 2006 : Southern African Accounting Association Biennial International Conference : Sun City, South Africa, 26-28 June 2006Usage metrics
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