Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Wednesday, June 28, 2017 01:10:52 PM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

How money reduces worry about old age?

photo by

By
18th-Apr-2017       Readers ( 409 )   0 Comments
Comments
Share your thought
Post a comment »
Read all (0) »

Life Desk :
Individuals who possess a greater understanding of finance are less likely to fret about life in their twilight years.
It seems financial literacy - the ability to understand how money works, enables people to accumulate more assets and income during their lifetime, and so increases confidence for the years ahead.
'Financial literacy - the ability to understand how money works, enables people to accumulate more assets and income during their lifetime, and so increases confidence for the years ahead.'
Additionally, financial literacy seemingly engenders a greater perception for risk and enables those who have it to face off later-life's dilemmas with ease.
These findings, from Associate Professor Yoshihiko Kadoya of Hiroshima University and Mostafa Saidur Rahim Khan of Nagoya University, stem from a study which asked people from across Japan to answer questions assessing their calculation skills, understanding of pricing behavior, and financial securities such as bonds and stocks.
Respondents were also asked about their accumulated wealth, assets, and lifestyle - and to rate the level of anxiety they felt about life beyond 65.
As the first study to investigate financial literacy as a contributing factor to anxiety about old age, it should prove useful to policy makers in Japan and other developed countries where population aging is a growing concern.
The study has thrown up several intriguing findings for economic gurus to mull over. It suggests that financial literacy is not particularly high throughout Japanese society, and that men, and those with a higher level of education are more financially clued-in than women, and those with less education respectively.
The overriding thrust is that the more financially literate earn and accumulate more during their lifetime - and thus worry less about growing old.
It also appears that financial literacy helps shape people's perception towards risk and uncertainty - making them more capable and confident in tackling whatever problems life throws at them.
Professor Kadoya says that financial literacy increases our awareness about financial products, builds a capacity to compare all available financial options, and changes our financial behavior - all which bodes well for our perceptions of, and actual experiences during our seniority.
While financial literacy taken alone was seen to reduce anxiety - its affect was further heightened by other factors.
Married respondents had even lower levels of anxiety about growing old than financially literate singletons. This could be down to married couples together planning more-effectively for the future due to familial responsibilities.
Age also plays a significant role, with anxiety levels peaking around 40. The researchers suggest that people at this age have the most home and workplace responsibilities, but with less money and time to support them, increasing anxiety about the here and now - and the journey ahead.
Interestingly as people get older their anxiety levels drop off on gaining access to social security, government funded health care and pensions - all taking the sting out of the post-retirement blues.
Having dependent children on the other hand increased anxiety levels - presumably due to respondent's worry for their children's wellbeing - as well as their own.
The findings should have implications for Japan and other countries where retirees account for a large and rapidly growing share of the population.
Although Japan has a universal pension system, its benefits depend on an individual's ability to pay throughout their working life. As in much of the developed world, it is increasingly perceived that a pension is insufficient for daily expenses without a backup pool of savings and assets - putting the financially literate at a distinct advantage.
But should we be worrying about our finances in old age at all? Professor Kadoya doesn't think so and says governments need to develop strategies to stem an anxiety pandemic:
"People shouldn't spend time worrying about the future. That is why governments provide pensions, housing, and medical plans. If the perception is that these are not fulfilling their purpose then governments and providers need to look at making them more accessible - if people are still worried then we need to look at educating people about these services that are supplied for their needs."
Source: Eurekalert

0 Comments. Share your thoughts also.
Write a comment
Tariff
Add Rate

News Archive

Inside The New Nation

Editorial »

Eid Mubarak


THE nation is set to celebrate EID-UL-FITR on Monday subject to sighting of the moon of Shawal. It is also known as the 'Feast of Breaking the Fast' through the whole month of Ramzan. Preparations are afoot throughout the country to end the fasting through festivities. Eid is an important ...

Cricket »

Danielle Hazell claimed the wicket of Punam Raut in the match of the ICC Women`s World Cup between England and India in Derby on Saturday.


.

City »

BNP Standing Committee Member Gayeshwar Chandra Roy speaking at a protest rally organised by Jatiyatabadi Projanmo Dal at the Jatiya Press Club on Saturday demanding release of BNP leader Barkat Ullah Bulu.


.

Entertainment »

Shahrukh is not doing a cameo in Jagga Jasoos


It was recently reported that Shah Rukh Khan will do a cameo in Ranbir Kapoor’s Jagga Jasoos, however contrary to the rumours it emerges that Shah Rukh Khan will not be seen in Anurag Basu’s musical adventure featuring Ranbir Kapoor and Katrina Kaif. Sources close to the film rubbishes the ...

International »

Ivanka ordered to testify in dispute with shoe company


AP, New York :Ivanka Trump must testify in a dispute with an Italian shoemaker over one of her company's shoe designs, a judge said Friday.U.S. District Judge Katherine Forrest rejected a request by the senior White House aide's lawyers that she be blocked from submitting to a deposition in the ...

Editorial »

Safety on highway must be high on card


AS the Eid-ul-Fitr is knocking the door, home-bound passengers are taking long journey on highways and using Railways and Waterways to reach families overnight. There is acrimonious scene all over and we must say the government must ensure discipline at critical places to avoid mishap. The weather is however good ...

Back Page »

Iftar Mahfil welfare approach


Abdul Muqit Chowdhury :Iftar Mahfil has become a tradition in the Holy Ramzan. Such gathering, if it is a positive approach to contribute to fraternal relation in the society, is surely acceptable. Sharing the joy of fasting irrespective of social status and class is praiseworthy.This reflects allegiance to the Islamic ...

City »

BNP Standing Committee Member Barrister Moudud Ahmed, among others, at a discussion on 'Attack on Mirza Fakhrul Islam Alamgir and Amir Khasru Mahmud Chowdhury and Future of Clean Politics of Bangladesh' organised by Swadhinata Forum at the Jatiya Press Club on Friday.


.

Entertainment »

Alia is Raazi for Meghna Gulzar`s next


Alia Bhatt is all set to feature in Meghna Gulzar’s next, Raazi. The actress would be seen playing a Kashmiri girl marries to a Pakistani army officer in the espionage thriller. Raazi portrays the story of a Kashmiri girl married to a Pakistani army officer who would provide Indian intelligence ...

International »

Senate Republicans unveil Obamacare replacement bill after months of closed-door crafting


Reuters, Washington :U.S. Senate Republicans on Thursday unveiled their version of legislation that would replace Obamacare, proposing to kill a tax on the wealthy that pays for it and reduce aid to the poor to cut costs.With Democrats deeply opposed to Republican attempts to overhaul former President Barack Obama's signature ...

Editorial »

Mayors must do more to contain chikungunya in city


THE outbreak of mosquito borne diseases like a new type of fever called chikungunya, in addition to dengue fever in the city and elsewhere is causing additional concern to city dwellers and public health authorities how to protect people from this danger. People in most families in the city are ...

Back Page »

Zum'atul Wida


Abdul Muqit Chowdhury :The last Friday of the Holy Ramzan is called 'Zum'atul Wida'. It means 'departing Zum'a'. The musallies with due religious fervour join the Zum'a congregation and bid farewell to this month of patience and self-restraint. Al-Quran imposes obligation of the Friday prayer in the followingverses : "O ...

Cricket »

Malinga in hot water over 'monkey' comment


AFP, Colombo :Sri Lanka fast bowler Lasith Malinga faced an investigation Thursday after he compared a government minister to a monkey following criticism that the country's cricketers were too fat.Sports minister Dayasiri Jayasekera said he ordered an inquiry after Malinga lambasted him for questioning the endurance of Sri Lankan players ...

Entertainment »

Harry and Sejal grooving on Radha


Jab Harry met Sejal’s first song Radha is out and it’s as refreshing as it can get. The song features Shah Rukh Khan and Anushka Sharma dancing to the tunes of Sukhwinder Singh and Sunidhi Chauhan on the streets. The peppy number with its foot tapping music and catchy lyrics ...

Entertainment »

Samia Rahman’s Eid reality show Rupantor


Entertainment Report :A reality show will be telecasted in five days of Eid holidays and its result will be announced during this time. This short-term reality show Rupantor is planned by Samia Rahman. She will moderate the show. She will select 30 university females among hundred students. Produced by Samia ...

 
Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
 
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Email:
Write a comment to this news