The role of financial education in supporting decision-making for retirement

Ageing populations and fiscal pressures have led many governments to reform their pension systems in ways that are making individuals increasingly responsible for managing their retirement wealth, as well as investment and longevity risks. This chapter starts by providing an overview of the main challenges people face when they take decisions for retirement. The chapter then looks at the role of financial education in addressing people’s lack of financial literacy for retirement, analysing how financial education needs for retirement vary across different features of pensions systems and discussing the main existing initiatives. It concludes with practical tools to support policy makers.