Financial Literacy Of Rural Residents In Shaanxi And Its Effects On Retirement Plan

Governments around the world have expressed concerns about the low level of financial literacy amongst their citizens.The potential magnitude of the consequences of a lack of financial literacy has been further demonstrated by the financial crisis.Financial literacy is an important foundation for social development projects,the Ministry of Finance in order to improve the operation of financial institutions,to maintain financial stability and promote the development of financial market,the survey included in the work of national financial literacy level projects that can enhance people’s financial literacy,prevention and control of financial crime,reduce consumer disputes.According to statistics,the average financial knowledge of the Chinese people only 53-87 points,not yet qualified.The reason is that the past 10 years to introduce new financial products,various financial activities such as savings,investments,loans,credit cards,insurance,financial planning etc.is already an integral part of life,the development of various financial products are becoming increasingly sophisticated.On the other hand,China has entered the aging society,people’s retirement become the top priority of people’s livelihood.Especially for the low income of rural residents,how to plan their own retirement has also become urgent social problems:Therefore,this study is based on financial literacy and retirement plans,for rural residents in Shaanxi Province conducted a survey of data,on the basis of 486 valid questionnaires were based on econometric analysis,assess the level of financial literacy of rural residents in Shaanxi,empirical factors affecting financial literacy;and using Logistic model to explore the association between financial literacy and retirement plans,the main study of the relationship between financial literacy and retirement savings,financial literacy and urban and rural pension insurance.The results showed that:a low level of financial literacy of rural residents in Shaanxi,women,the elderly,minorities,low income,low education level and farmers has a lower level of financial literacy;financial literacy raising the possibility of the residents know the level of development of retirement savings plans,but no significant impact on the level of participation in urban and rural residents to pay pension insurance as well as insured.Expand the range of financial education,strengthen financial literacy and financial product;improve the level of financial literacy in order to promote the development of retirement savings plan;improving income,encouraging rural residents more consiaeration for retirement;actively respond to the aging population,increase financial support to accelerate the development of pension services;the pension idea deeply rooted in the hearts of people,so that more older people have old-age security.