There is an old saying that "money can't buy you happiness" which often irritates people who know that money nevertheless is essential for what is necessary for people to be really healthy and comfortable. So even if you are not very happy for one reason or another with money at least you can confront whatever harsh realities may exist in your life with as much comfort as possible.
A new study at Hiroshima University has suggested that financially literate people are more
capable of accumulating wealth and worrying less about life in old age. With financial literacy people can usually accumulate more assets and income during the course of their
lifetime. This helps nurture increased confidence for their old age.
Associate Professor Yoshihiko Kadoya of
Hiroshima University and Mostafa Saidur Rahim Khan of Nagoya University worked on this study together. People were asked to rate the level of anxiety they felt about life after they turned 65 years old. Their responses were assessed against there accumulated wealth, assets and lifestyle.
It does not seem any other study has investigated financial literacy as a factor which contributes to anxiety in dealing with old age. In an era where population aging is a growing concern this consideration becomes important to policy makers in Japan and other developed countries such as the United States. The overall conclusion has been that the more financially literate people are the more they generally earn and
accumulate more during the course of their lifetime. These people therefore do not worry as much about growing old.
This study has been published in the journal Review of Economics of the Household. Researchers have provided evidence that assets significantly lower anxiety about life in old age only for those people who are more literate financially. Social security seems more critical for people who are less financially literate. Clearly money really can be a vital factor in helping people remain calm and happier as they age.
