Financial literacy, financial judgement, and retirement self-efficacy of older trustees of self-managed superannuation funds

Jo Earl, Paul Gerrans, Anthony Asher, Julia Woodside

    Research output: Contribution to journalArticle

    11 Citations (Scopus)

    Abstract

    We investigate relationships between retirement self-efficacy, financial literacy and financial judgement across a sample of older trustees of self-managed superannuation funds (SMSFs). Aside from demographic factors, we explore self-rated dementia behaviours, general mental ability, mastery and risk tolerance. An increasing number of older people are controlling significant assets, particularly those who elect to become self-managed superannuation fund trustees. The ageing population, including self-managed superannuation fund trustees, is susceptible to cognitive decline with advancing age. We find that cognitive ability and self-rated behavioural dementia symptoms both relate to financial literacy. Variance in retirement self-efficacy was explained by age, cognitive ability, financial literacy, mastery and self-rated behavioural dementia symptoms. Those reporting dementia symptoms appear more vulnerable to making poor financial judgements. Findings have important implications for financial literacy interventions and the monitoring of on-going cognitive decline.

    Original languageEnglish
    Pages (from-to)435-458
    Number of pages24
    JournalAustralian Journal of Management
    Volume40
    Issue number3
    DOIs
    Publication statusPublished - 2015

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