The effect of financial knowledge on workers' expectation of never retiring

We extend previous research on factors related to workers stating that they would never retire, by analyzing the impact of financial knowledge variables on the expectation. The never retire rate is related to objective financial knowledge, with a 20% rate for those who missed all questions, compared to 12% for those who answered all questions correctly. We find a similar pattern between subjective knowledge and the never retire rate. Using logistic regressions, we find that survey respondents who missed questions for objective financial knowledge are more likely to choose a never retire response than those who do not miss any questions. We also find that overconfident respondents are more likely to give a never retire response than underconfident respondents. Our results have implications for financial education and policies related to retirement, as well as for research on retirement adequacy.