Financial literacy may not directly drive investment participation or retirement planning in Japan
Shohei Shimizu
IntroductionJapan's rapidly aging society and pension-related deficits highlight the importance of household financial asset formation. Despite policies such as the Nippon Individual Savings Account, Japanese households still allocate over half their portfolios to deposits. While financial literacy has been linked to retirement planning and investment participation, existing research is largely correlational.MethodThis study uses individual-level data from the 2022 Financial Literacy Survey. We