Financial Literacy and the Shift From Defined Benefit to Defined Contribution Pension Plans

The shift to defined contribution pensions requires people to be knowledgeable about finance and economics, yet evidence suggests that even basic numeracy is poor amongst a sizeable proportion of working adults. This chapter discussed the evidence and the provision of financial education programmes that are designed to address the problem. It then goes on to consider ways of improving financial education and alternative ways of stimulating retirement planning.