•  By improving financial education, policy-makers can affect economic behaviour. Evidence shows a positive correlation between financial literacy and retirement planning abilities, the likelihood of buying risky assets and investing efficiently. •  Financial education is helpful but its impact should not be overestimated.
Regulations to protect consumers – such as by reducing conflicts of interest for  6  BIS Review 135/2007  financial advisers, introducing rules of disclosure, and making provision for investment default options – are complementary to financial education. For example, policies to increase the transparency of financial products can improve households’ welfare both on the asset and liability side.