Proper retirement planning, the ability to exploit diversification opportunities and the propensity to invest in high-return and high-risk assets is more widespread among financially literate households (Lussardi and Mitchell, 2006, 2007; and Calvet, Campbell and Sodini, 2005).
Especially in the context of ageing populations and the expected progressive shift away from public pension provision, based on pay-as-you-go schemes, to privately funded schemes where people have to assume responsibility for their own retirement savings, enhancing financial literacy becomes essential.