Significance of Retirement Planning Skills and the effect of Financial Understanding on Investment Behaviour

Insights and Implications from the “Big Three”

Abstract

Using the "Big Three" questions, we looked at the crucial association among financial-literacy and retirement-planning knowledge. We discovered a link between varied investment options and a better grasp of financial concepts, underscoring the need of financial education. Surprisingly, individuals who had a better grasp of intricate financial concepts exhibited a stronger propensity to choose riskier assets, such stocks and mutual funds. Our study underscores the role that financial knowledge plays in influencing Retirement planning and investing choices. It's vital to note, there are certain restrictions, such as, modest sample size, and a narrow geographic focus, which may affect how generalizable our findings are.