Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Thursday, February 22, 2018 09:08:37 AM
Follow Us On: Facebook Twitter Twitter Twitter Twitter
BREAKING NEWS:

How money reduces worry about old age?

photo by

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

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

Tariff
Add Rate

News Archive

Inside The New Nation

Editorial »

Ekushey tells us to be free and fearless against injustice


THE Nation celebrates 'Amar Ekushey' today with due solemnity and colourful festivities to remember the Martyrs of the 1952 Language Movement. It is a landmark occasion and a day of awakening in the history of Bengali people that gave us the clear realization that we have our own language and ...

Cricket »

Captain of Bangladesh National Cricket (ODI) team Mashrafe Bin Mortaza handing over a crest of honour to Hafiz Yasin Arafat at the Bashundhara International Convention Centre in the city recently. Yasin Arafat became Hafiz-e-Quran in 86 days. He was a student of Tanjimul Ummah Hifz Madrasah of Cox's Bazar. Ahlul Huffaz Foundation Bangladesh arranged the reception programme.


Sports »

Medalists in the ice dance, free dance figure skating (from left) : Gabriella Papadakis and Guillaume Cizeron, of France (silver), Tessa Virtue and Scott Moir of Canada (gold) and Maia Shibutani and Alex Shibutani of the United States (bronze) pose during their medals ceremony at the 2018 Winter Olympics in Pyeongchang, South Korea on Tuesday.


International »

Trump backs improved background checks on gun buys


US President Donald Trump signaled support Monday for improving background gun checks amid mounting pressure for reform in the wake of the Florida school shooting, as the accused gunman appeared in court.Nikolas Cruz, charged with killing 17 people, sat silently with his head bowed during a procedural hearing in Fort ...

International »

Nepal wants to deepen ties with China: K P Oli


PTI, Kathmandu : Nepal's new Prime Minister K P Oli has said he wants to deepen ties with China to explore more options and get more leverage in his dealings with India "in keeping with the times". Mr Oli, widely regarded as pro-China, also said he wants to "update" relations with ...

Business & Economy »

M Fakhrul Alam, Managing Director of ONE Bank Limited and Rezaul Islam, General Manager of Bangladesh Bank sign a participatory agreement regarding use of JICA assisted Foreign Direct Investment Promotion Project fund recently. Governor Fazle Kabir, Deputy Governor Abu Hena Moh. Razi Hasan, Executive Director Ahmed Jamal of Bangladesh Bank, chief representatives of JICA Bangladesh office Takatoshi Nishikata and among other were also present on the occasion.


Entertainment »

Inspired by the journey of Deepika and Anushka: Nidhhi Agerwal


Nidhhi Agerwal who hails from Bangalore and is living independently in Mumbai currently believes Deepika and Anushka's journey to the top has inspired her a lot. Just like the other two Bollywood divas, Nidhhi also went through her part of the struggle to make it to Bollywood. The young actress ...

City »

Law enforcers intercepted women leaders and activists of Jatiyatabadi Chhatra Dal when they were going to visit BNP Chairperson Begum Khaleda Zia with fruits at Old Dhaka Central Jail on Tuesday.


Sports »

Medalists in the women's 12.5-kilometer mass start biathlon (from right) Belarus' Darya Domracheva (silver), Slovakia's Anastasiya Kuzmina (gold) and Norway's Tiril Eckhoff (bronze) pose during their medals ceremony at the 2018 Winter Olympics in Pyeongchang, South Korea on Sunday.


Entertainment »

I am very excited about working with Akshay Kumar: Parineeti


Parineeti Chopra, who will be sharing screen space for the first time with Akshay Kumar, says she is excited to work with the superstar in Kesari.The film, being directed by Anurag Singh, will see Akshay essaying the role of Havildar Ishar Singh, while Parineeti plays his wife."(I) am very excited ...

Editorial »

We welcome UK`s removal of ban on direct air cargo


THE UK government has fully withdrawn the two-year-long ban on direct cargo flights from Dhaka to London ending the plight of exporters, particularly garment exporters who were facing difficulty to make emergency shipment of samples and other cargo to buyers within the stipulated time. The British government said it is ...

City »

Buyers flip through the books at a stall of Amar Ekushey Book Fair on Bangla Academy premises in the city on Monday.


International »

Syrian forces to back YPG` in fight against Turkey


Al Jazeera News :The Kurdish YPG fighters claim they have reached a deal to allow Syrian government troops to enter Afrin in the northwestern part of the border town.Nuri Mahmoud, a spokesman for the People's Protection Units (YPG), told Al Jazeera on Monday that they are calling on the Syrian ...

Editorial »

Cleansing operation to stop leakage of question


QUESTION leakage during the ongoing SSC examination showed that the government has no power and the Education Ministry has no control over the corrupt people handling the question papers. So far questions of all 10 tests were openly available around the examination centers in Dhaka city and other places from ...

Sports »

Simidele Adeagbo of Nigeria reacts in the finish area after the final run of the women's skeleton competition at the 2018 Winter Olympics in Pyeongchang, South Korea on Saturday.


 
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