Pros and Cons of Retirement: Financial Literacy and Its Implications for Wealth Management

Abstract

This article explores the interconnected roles of financial literacy, wealth management, and retirement planning in shaping financial well-being. While previous research has examined financial literacy extensively, the combined impact of financial literacy and wealth management on retirement outcomes remains less explored. Using a dataset that includes lifestyle and wellbeing data (Kaggle.com 2021), which collected over 12,000 survey responses between 2015 and 2021, we employ a partial least-squares path model (PLS-PM) to analyze the relationships between financial literacy, wealth management, and retirement. Our findings suggest that while financial literacy alone has a significant impact on retirement, incorporating wealth management further enhances retirement outcomes. The results underscore the importance of financial literacy across all population segments, and highlight the role of finance professionals in promoting effective wealth management. Ultimately, our research adds to the growing literature, demonstrating that financial literacy and wealth management together can significantly improve retirement well-being.