Financial Literacy and Retirement Decision: An Empirical Analysis on Italian Data ​

This work is focused on the analysis of the survey conducted by the Bank of Italy in 2017, 'Adult Financial Literacy in Italy'. In particular, it focuses on the relationship that exists between Financial Literacy, measured with the use of Big Three: basic questions about interest rate, inflation, and diversification; and Retirement Planning. In particular, firstly, social-demographics characteristics that affect the level of financial knowledge are analyzed, later, the overall level of Italians' Financial Literacy is checked. Since the latter result is not encouraging at all, the population is divided into two groups, Planners and Non-Planners, and through a logit regression is checked to what extent Retirement Planning is influenced by socio-demographic characteristics and Financial Literacy. In the end, limitations and some personal suggestions on what should be done in the future are exposed.