Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Saturday, April 21, 2018 12:35:41 AM
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 »

No law can restrict freedom of speech


EDITORS' COUNCIL, an organisation of editors of the country's national dailies, has recently expressed grave concern over Section 21, 25, 28, 31, 32, and 43 of the Proposed Digital Security Act. It said the sections would greatly obstruct freedom of speech and independent journalism. However, responding to the concern the ...

Football »

Manchester United`s Paul Pogba (second right) and Bournemouth's Steve Cook battle for the ball, during the English Premier League soccer match between Bournemouth and Manchester United, at the Vitality Stadium in Bournemouth, England on Wednesday.


.

City »

General Secretary of Bangladesh Sarak Paribahan Sramik Federation Osman Ali, among others, at a rally of labourers in Swadhinata auditorium of DRU on Friday demanding implementation of five thousand CNG registration allocated for drivers.


.

Entertainment »

Anny pairs up with Zahid Hasan for first time


Entertainment Report :Popular actress and model of present time Anny Khan for the first time paired up with National Film Award winner actor and director Zahid Hasan in a drama serial.Zahid Hasan is acting in the title role in the serial. Viewers will watch a new role Zara in the ...

International »

Koreas set up 1st hotline between leaders ahead of summit


AP, Seoul :North and South Korea installed the first-ever telephone hotline between their leaders Friday as they prepare for a rare summit next week aimed at resolving the nuclear standoff with Pyongyang.South Korea's presidential office said a successful test call was conducted on the hotline between Seoul's presidential Blue House ...

Editorial »

Lawlessness in the transport sector


RAJIB Hossain, a third-year student of Titumir College, whom right hand was pulled out being stuck between two speeding buses in the city, drifted off to death on Tuesday after two weeks in coma. The life of the ill-fated youth ended quite tragically at 21 leaving his two teenage brothers ...

Football »

Real Madrid's Cristiano Ronaldo gestures during a Spanish La Liga soccer match between Real Madrid and Athletic Bilbao at the Santiago Bernabeu stadium in Madrid on Wednesday.


Entertainment »

Sudden rendezvous of Afsana Mimi, Zahid Hasan


Entertainment Report :Hothat Dekha (sudden rendezvous) is not a title. It was a sudden rendezvous of two friends, two popular actors and directors - Afsana Mimi and Zahid Hasan.  Recently they were taking part in shooting of two separate plays in the city’s Uttara area. Zahid Hasan was engaged with ...

Entertainment »

Momo appears as Alta today


Sheikh Arif Bulbon :National Film Award winner actress Zakia Bari Momo acted and Arun Chowdhury directed movie Altabanu releases today. In this movie, Momo acted in role of Alta against Anisur Rahman Milon. Farzana Rikta acted in role of Alta’s younger sister Banu. Including Dhaka this movie is set to ...

City »

Chief Election Commissioner KM Nurul Huda speaking at a seminar on 'Giving National Identity Cards among Expatriate Bangladeshis and Voting Rights' organised by Bangladesh Election Commission at Sonargaon Hotel in the city on Thursday.


International »

UN in talks with Syria, Russia on security for chemical weapons experts


AFP, United Nations :A UN team is discussing security arrangements with Syrian and Russian authorities in Douma to allow experts to deploy soon to investigate an alleged chemical weapons attack, UN security officials said Wednesday.The fact-finding mission from the Organisation for the Prohibition of Chemical Weapons (OPCW) to the Syrian ...

Editorial »

Ensure proper working atmosphere in RMG sector


WORKERS at more than 3,000 subcontracting readymade garment factories in Bangladesh have been working under dangerous conditions even five years after Rana Plaza collapse as the factories still lack of safety measures, according to a recent study of New York University. The study titled 'Five Years After Rana Plaza: The ...

Football »

Draw ceremony of SAFF Championship held


Sports Reporter :The draw ceremony of SAFF Championship was held at the Pan Pacific Sonargaon Hotel in the city on Wednesday.President of BFF and President of SAFF Kazi Md Salahuddin, Regional Country Manager of Maruti Suzuki Seije Hamda, Senior Vice-President of BFF Abdus Salam Murshedy, Vice-President of BFF Kazi Nabil ...

Sports »

The Thailand-bound Bangladesh Hockey team pose for photo at the Falcon Hall of Bangladesh Air Force Office in the city's Tejgaon on Wednesday.


Entertainment »

Is Natasha Suri Lady Luck for Dwayne Bravo?


A few days ago Natasha Suri and Dwayne Bravo were spotted laughing and chatting away animatedly, in spite of the attention of on-lookers and fans at a SoBo coffee shop. She was also spotted in the VIP box watching the IPL match the next evening at Wankhede Stadium in Mumbai. ...

 
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