Financial Literacy and Retirement Planning in Kazakhstan

Sang H Lee, Ayakoz Kuttyzholova

Abstract


Financial literacy level of Kazakhstan is measured using internationally standardized basic questions to compare with other countries previously studied. The level in Kazakhstan is alarmingly low compared to advanced countries. The most vulnerable groups are identified as female with no business education and lower income. The relationship between the financial literacy and retirement planning indicates that both variables are jointly determined, i.e. the higher is the literacy scores the more likely planned retirement and vice versa. This result indicates the importance of government efforts to promote the financial literacy level of the most vulnerable groups for the successful implementation of the recent pension reform which emphasizes more on the individual responsibility for the retirement.


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