What affects the financial asset allocation of the elderly? From the perspective of financial literacy and risk attitude

Abstract

Using data from the 2019 China Household Finance Survey, this study investigates the impact of financial literacy and risk attitude on pension asset allocation in the context of population aging. It can not only provide new research perspectives, but also provide support for the government to promote the improvement of the pension security system. We find that population ageing can inhibit residents’ pension financial asset allocation, with residents’ risk attitudes and financial literacy playing a significant mediating effect. Heterogeneity analysis shows that the inhibiting effect of population ageing on pension financial asset allocation is stronger in the eastern and rural areas.