Financial well-being amongst elderly Australians: The role of consumption patterns and financial literacy

Rui Xue, Adrian Gepp, Terence O'Neill, Steven Stern, Bruce J Vanstone

Research output: Contribution to journalArticleResearchpeer-review

30 Citations (Scopus)
620 Downloads (Pure)

Abstract

Consumption behaviour and financial literacy are primary factors in determining the financial well‐being of retirees. This paper uses an existing financial literacy index to examine how financial literacy directly, and via an interaction with consumption patterns, affects elderly Australians’ financial well‐being. We find that most elderly Australians hold an optimistic attitude towards their financial situation, and those who are relatively older, more educated, healthier and outright homeowners are more likely to report higher levels of financial well‐being. Financial literacy significantly improves financial well‐being. It also helps strengthen the positive effects of meeting more of non‐essential consumption needs on financial well‐being.
Original languageEnglish
Pages (from-to)4361-4386
Number of pages26
JournalAccounting and Finance
Volume60
Issue number4
Early online date30 Sept 2019
DOIs
Publication statusPublished - Dec 2020

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