Marvin Wee Seminar
- Topic: Effects of Presentation Format and Financial Literacy on Accessibility and Decision Usefulness of Information in Pension Benefit Statements
- Speaker: Marvin Wee, Associate Professor, Accounting and Finance, The University of Western Australia
- Venue:E4A 623
- When: 14th November, 2014, (Fri)
- Time: 11am - 12pm (Morning Tea from 10.30am)
While financial literacy affects retirement savings decision making by individuals, modifying the placement of key information in pension benefit statements can lead to positive outcomes beyond those achieved by financial literacy alone. We examine the extent to which placement of information and financial literacy affects the accessibility of information for individuals and assists them in their financial decision making. Using an experimental design involving 577 pension fund members, we find the increased salience as a result of modifying the presentation format improves the ability of participants to locate important financial information and to evaluate the relative performance of funds. However, the incremental benefits of placement are only found for individuals with intermediate financial literacy. Consequently, we find there is value accruing from financial literacy programs as advocated by regulators, but our results also suggest there are additional benefits that can be reaped from using presentation formats that improve the accessibility of information.