The impact of financial literacy on retirement financial planning

Abstract

Financial literacy, an important factor shaping personal futures and financial systems, has not been adequately emphasized in Vietnam. Despite efforts to improve, recent research shows that over 80% of the population knows little about personal finance. This highlights a significant challenge for financial planning, especially as retirement approaches. Financial literacy profoundly influences future financial behaviors and plans, particularly among young people and those nearing retirement. With Vietnam experiencing rapid population aging, managing finances during retirement becomes more critical than ever. However, there is still very little research on the relationship between financial literacy and retirement planning in this country. This study aims to understand the level of financial literacy and its impact on retirement plans among those nearing retirement in Vietnam. By using adapted questions from the OECD, this research hopes to contribute to the development of financial literacy and retirement financial planning in Vietnam and worldwide. Especially in the context of the evolving financial environment in Vietnam and globally, this study could provide new insights and value for economic policies and strategies.