Financial Literacy and Financial Advice Seeking for Retirement Investment Choice
Thi Anh Nhu Nguyen, Zoltan Rozsa
Keywords:
financial literacy, financial advice, household finance, investment choice, retirement
Abstract:
The research investigates the effects of the degree of financial literacy on financial advice seeking
for retirement investment choice as well as assesses the level of financial literacy of Vietnamese
employees. An empirical research was conducted by examining 314 individuals who are
currently at working stage. This current work also contributes to the present literature by exploring
whether the relationship between financial literacy and seeking out advice is a substitute or
complementary relationship. The estimation techniques applied in this resaerch are statistics
descriptive analysis and two-stage least squares (2SLS) regression. The results of our statistics
descriptive analysis indicated that Vietnamese employees have a moderate level of basic and
advanced financial literacy. After addressing the endogenous problem by running a two-stage
least squares (2SLS) regression, results show that both basic financial knowledge and advanced
financial knowledge are positively correlated with financial advice seeking for retirement investment
choice. This result also supports the evidence that this relationship may be considered a
complementary one. Hence it is recommended that policy makers should concede that along
with financial literacy, financial advice ought to be perceived as a complementary mechanism to
assist individuals to make informed retirement investment choices.
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 Financial Literacy and Financial Advice Seeking for Retirement Investment Choice [PDF file] [Filesize: 569.44 KB]
 10.7441/joc.2019.01.05
Nguyen, T. A. N., Rozsa, Z. (2019). Financial Literacy and Financial Advice Seeking for Retirement
Investment Choice. Journal of Competitiveness, 11(1), 70–83. https://doi.org/10.7441/joc.2019.01.05
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