Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Wednesday, October 18, 2017 03:13:37 PM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

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 »

Slow down in poverty reduction needs special attention


POVERTY reduction rate in the country is slowing down as calculated from data that to be revealed by Bangladesh Bureau of Statistics (BBS) in few days as per report in a national daily. The yearly average poverty reduction rate was estimated at 1.7 percent from 2005 and 2010 and it ...

International »

US official not ruling out eventual direct talks with N Korea


Reuters, Tokyo :The United States is not ruling out the eventual possibility of direct talks with North Korea, Deputy Secretary of State John J. Sullivan said on Tuesday, hours after Pyongyang warned nuclear war might break out at any moment.Talks between the adversaries have long been urged by China in ...

International »

US 'not taking sides' between Iraqi forces, Kurds: Trump


Washington is "not taking sides" following clashes between Iraqi forces and the country's Kurds, US President Donald Trump said Monday, as tensions escalate following the autonomous Kurdish region's independence referendum.Speaking after Iraqi troops and tanks swept across the northern province capturing oil and military targets from the Kurds and seizing ...

Entertainment »

Deepika the new age Dream Girl: Hema Malini


Deepika Padukone recently made time to launch the biography that was being launched on Hema Malini at a suburban hotel. Hema Malini’s birthday was a big affair for the yesteryear actress as well as her fans, as it saw the unveiling of her biography. The Dream Girl of the golden ...

Entertainment »

Gauri Khan plays a hostto Aamir Khan at Gauri Khan Designs


Aamir Khan recently visited close friend Shah Rukh Khan’s wife Gauri Khan’s store in the suburbs of Mumbai. The actor took out time from the promotions of his upcoming film Secret Superstar to visit the newly opened artistic store which provides imaginative and creative designs and decor. Gauri Khan has ...

City »

Newly appointed European Union Envoy to Dhaka Mrs. Rensje Teerink presents credentials to President Abdul Hamid at Bangabhaban on Tuesday.


Editorial »

Rohingya crisis posing big threat to national economy


BANGLADESH economy is facing real challenge as the Rohingya crisis is deepening with the exodus of the homeless in thousands daily to demand more allocation of budgetary resources to give them shelter. It is causing destruction to local infrastructure, bringing enormous pressure on education and health care services and pushing ...

Sports »

Players of Toronto FC celebrate with the Supporters` Shield following their win over the Montreal Impact in MLS soccer game action in Toronto on Sunday.


Entertainment »

Vaani Kapoor scorching the screen with her hot moves


It was not long time back when Vaani Kapoor sizzled the screen with her sexy moves in Nashe Si Chad Gayi from Befikre. The song was a massive hit and it created lots of buzz because of the sizzling chemistry between Vaani and Ranveer Singh. Now Vaani is back with ...

City »

Neuro Spinal Society of Bangladesh brought out a mass awareness rally in the city on Monday marking World Spine Day.


International »

Iraqi forces seize territory from Kurds in independence dispute


AFP :Iraqi forces seized a key military base, an airport and an oil field from Kurdish fighters Monday in disputed Kirkuk province in a major operation sparked by a controversial independence referendum.The offensive, which follows weeks of soaring tensions between two US allies in the battle against the Islamic State ...

Editorial »

Ctg Port needs urgent expansion


THE number of containers handled at Chittagong Port is growing by 15-22 percent every year, but the Port is running its operations with the same quantity of jetties and yards it had 10 years back. Even worse, the New Mooring Container Terminals (NCTs) built in 2007 cannot run in full ...

Entertainment »

Aishwarya Rai was `100pc protected` from Harvey Weinstein, says Hollywood executive


A Hollywood executive who represented Bollywood star Aishwarya Rai Bachchan internationally in the 2000s has alleged that Harvey Weinstein, the movie mogul battling scores of sexual assault allegations, had once asked her after a meeting, “What do I have to do to get her alone?”“Kiss my black a**,” is what ...

City »

BFUJ President Manjurul Ahsan Bulbul, among others, at a roundtable on 'Role of Mass Media in Protecting Communal Harmony: Perspective Rohingya Crises ' organised by Buddhist Journal and Online Media Forum at the Jatiya Press Club on Sunday.


.

International »

California `horror` fires burn on, 40 dead in one week


Reuters, Santa Rosa  :Authorities hope weaker winds will help more than 10,000 firefighters battle the deadliest blazes in California history, which have killed at least 40 people and destroyed thousands of structures in one of the state's worst natural disasters in years.Fast-moving fires spread by shifting winds forced thousands more ...

 
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