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on Financial Literacy and Education |
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Issue of 2017‒09‒03
three papers chosen by |
| By: | John B. Shoven; Sita Nataraj Slavov; David A. Wise |
| Abstract: | While research shows that there are large gains in lifetime wealth from delaying claiming Social Security, most people claim at or before full retirement age. We fielded an original, nationally representative survey to gain insight into people’s rationales for their Social Security claiming decisions, their satisfaction with their past claiming decisions, and how they financed any gap between retirement and claiming. Common rationales for claiming Social Security before full retirement age include stopping work, liquidity, poor health, and concerns about future benefit cuts due to policy changes. Claiming upon stopping work and claiming at full retirement age appear to be viewed as social norms. But while Social Security claiming is strongly associated with stopping work, the roughly quarter of the sample who have a gap of two or more years between retirement and claiming used employer-sponsored pensions and other saving to finance the delay. Individuals who claimed at full retirement age are more satisfied with their claiming decisions than individuals who claimed early or delayed. There is little evidence that claiming decisions and rationales for claiming are correlated with financial literacy or knowledge of Social Security rules. |
| JEL: | D14 H55 J26 |
| Date: | 2017–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23729&r=fle |
| By: | Chaikal Nuryakin (Researcher, Institute for Economic and Social Research, Faculty of Economics, University of Indonesia, Jakarta); Prani Sastiono; Faradina Alifia Maizar (Researcher, Institute for Economic and Social Research, Faculty of Economics, University of Indonesia, Jakarta); Pyan Amin; Lili Yunita (Researcher, Institute for Economic and Social Research, Faculty of Economics, University of Indonesia, Jakarta); Nanda Puspita (Researcher, Institute for Economic and Social Research, Faculty of Economics, University of Indonesia, Jakarta); Moslem Afrizal (Researcher, Institute for Economic and Social Research, Faculty of Economics, University of Indonesia, Jakarta); Christine Tjen (Researcher, Institute for Economic and Social Research, Faculty of Economics, University of Indonesia, Jakarta) |
| Abstract: | The initiative to enhance financial inclusion in Indonesia has been done through Financial Digital Service (LKD) by Bank Indonesia (BI) and Smart Act Branchless Banking Service for Financial Inclusion (Laku Pandai) by Financial Services Authority (OJK). There are several factors contributing to the success of both programs. One of the most important factors is the quality of the agents in charge. In order to monitor the development progress of financial inclusion brought by both programs, LPEM FEBUI conducted preliminary research through financial service agent field survey in West Nusa Tenggara and Aceh. The programs inclusiveness, challenges faced by agents, and opportunity for service expansions are three components assessed in the study. The results depicted that, despite the leap in the number of agents, both programs so far serve mainly as complimentary service. It is also found that, although agents find sufficient profitability and sustainability, there are still notable challenges in infrastructure, funding, and technical capability which need to be addressed. Such results recommend regulator, especially BI and OJK, to put more attention on the establishment of information and training center for their agents and enhancement on digital inclusion as well as electricity coverage |
| Keywords: | Financial Inclusion — LKD — Laku Pandai — Digital Inclusion |
| JEL: | G28 G21 |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:lpe:wpaper:201708&r=fle |
| By: | Heather Taylor from the Macroeconomic Policy and Financing for Development Division. (United Nations Economic and Social Commission for Asia and the Pacific) |
| Abstract: | Designing financial inclusion strategies is a significant tool for ending poverty. It not only provides access to financial services and enhances the financial literacy of the poor, but it also allows micro, small and medium enterprises (MSMEs), startups and young firms, and innovative projects greater access to finance. However, the level of financial inclusion and its impact on poverty, employment and narrowing the gender gap varies widely across countries. Policies, therefore, need to be mainstreamed to improve full and equal access to financial services for all, with appropriate attention given to financial stability matters. |
| URL: | http://d.repec.org/n?u=RePEc:unt:pbmpdd:pb44&r=fle |