Financial competence, risk presentation and retirement portfolio preferences

摘要: Financial regulators are weighing up the effectiveness of different templates for communicating investment risk to retirement savers since welfare depends on comprehension information. We compare nine standard presentations using a discrete choice experiment where subjects choose between three accounts. Switching graphical or textual presentations, formats that emphasize benchmarks rather than return ranges values at risk, affects predicted choices more large changes in underlying risk. Innumerate individuals susceptible presentation, and those with weak basic financial literacy insensitive increasing levels, regardless presentation. Presentation effects moderated but not eliminated as improves.