Financial literacy directly impacts retirement planning decisions, new study reveals.
The study looked at how well people understand money and plan for retirement. They used a new dataset called the Rand American Life Panel to ask detailed questions about financial knowledge and retirement planning. They found that people who know more about money tend to plan better for retirement. Also, people who learned about economics in school or had financial education at work tend to have higher financial literacy. This shows that knowing about money is important for planning for retirement.