This study discusses the financial decision-making of older people in Singapore, and how it relates to their level of financial education.

It was found that 92% of the elderly with credit cards always paid their debt over a period of 24 months, and 42% were active in the stock exchange. Nonetheless, only 18% followed age-based planning for their risky investments. Altogether, about 60% of elderly Singaporeans followed at least two of the three recommended financial behaviors, whereas 13% adhered to all three, and 5% violated all three.

Multivariate analysis showed that older people with financial knowledge were more likely to make better financial decisions, controlling for other factors. One literacy point was associated with a 1.5 percentage point higher probability of constantly paying off credit card debts on time; a higher probability of 8.3 percentage points of participation in the stock market, and a 1.7 percentage point higher probability of adhering to age-related investment guidelines.

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