New Evidence on the Financial Knowledge and Characteristics of Investors
Jill E. Fisch, Andrea Hasler, Annamaria Lusardi, and Gary Mottola
Abstract: Increased individual responsibility for retirement saving and investing, together with the growing complexity of financial products, require that investors have financial knowledge and awareness. This report provides evidence of substantial differences across investor types. Workplace-only investors, whose exposure to investment decisions comes solely through participation in an employer-sponsored retirement plan, are much less equipped to manage their investments and are more likely to be women compared to active investors who have made investment decisions outside of an employer-sponsored retirement plan. Workplace financial wellness programs can provide an impactful way to reach a large share of the adult population and help them prepare to make sound financial decisions.