I know (and) I can and I do? The role of Multi-dimensional financial literacy in explaining pension information behavior

This paper assesses whether financial literacy can explain the likelihood of people delving into their pension situation. I suggest to use a financial literacy construct that, next to the usual financial literacy questions assessing numeracy and knowledge of financial concepts, also includes perceived financial knowledge, questions on pension-specific knowledge and a vocabulary test. A survey was distributed amongst employees and customers of a large insurance company in order to elicit participants’ financial literacy level, some relevant behavioural factors and demographics. I linked participants’ login behaviour in their respective digital pension environment (DPE) to their financial literacy level and behavioural factors including attitudes towards pension information, need for cognition and future time perspective. People with higher pension knowledge and knowledge about the concept of interest compounding were more likely to log in to the DPE. Attitudes, need for cognition and future time perspective are directly related with login behaviour. The relationship between financial literacy and login behaviour is not affected by behavioural factors.