Paper abstract:

Financial literacy is seen as a key factor in increasing financial well-being, as measured by capital accumulation and retirement planning. However, in the face of the risks of slowing economic growth, the availability of financial services and individually perceived inflation, the result of an insufficient level of financial literacy is an increase in the debt burden of the population, a decrease in public confidence in the financial system and involvement in illegal financial and investment pyramids.

We found that women, young people and people with a low level of education have lower levels of financial literacy and are most at risk when planning a pension. To better understand the relationship between financial literacy and retirement planning, we conduct an individual survey of a representative sample of 1,000 Kazakhstanis. Our goal is to collect data on financial skills by age of the respondent, as well as understanding of the country's pension reforms. We will evaluate this data to model retirement planning. Our findings will greatly advance our understanding of financial literacy and the implications of retirement planning.