Keywords
financial and pension ignorance, long-term savings, information avoidance
Abstract
In this study, we examine the impact of financial and pension ignorance (information avoidance) on the decisionmaking process for long-term savings. We define the concept of pension ignorance, as active avoidance of retirement information, failure to make decisions regarding retirement savings, and a lack of strategic retirement planning. To assess financial ignorance, we utilized the scale developed by Barrafrem et al. (2024), while pension ignorance was evaluated using the scale designed by the authors. The study was conducted with a sample of 1,200 Polish residents aged 18 to 65, using the Computer-Assisted Web Interviewing (CAWI) method. The findings reveal that both pension and financial ignorance play a significant role in explaining individuals’ willingness to save for the long term.
Acknowledgments
Funding
This study was supported by the Narodowe Centrum Nauki (Poland), grant number 2017/27/N/HS4/01663.
Declaration of Conflicting Interests
The author declared no potential conflicts of interest with respect to the research, authorship, and publication of the article.
Declaration About the Scope of AI Utilization
The author did not use an AI tool in the preparation of the article.
Recommended Citation
Olechnowicz-Szewczyk, A., & Babula, E. (2025). Is Knowledge Really Power and Ignorance Bliss? A Study of Financial and Pension Ignorance. Journal of Banking and Financial Economics, 2025(1), 58-69. https://doi.org/10.7172/2353-6845.jbfe.2025.1.4
First Page
58
Last Page
69
Page Count
12
Received Date
15.12.2024
Revised Date
02.03.2025
Accept Date
18.03.2025
Online Available Date
15.05.2025
DOI
10.7172/2353-6845.jbfe.2025.1.4
JEL Code
G41; G51
Publisher
University of Warsaw
