How Does Digital Financial Literacy Affect Family Pension Security? -- An Empirical Analysis based on CHFS Data

Jianhong Tao; Lian Lian

doi:10.54097/936dgc42

Authors

Jianhong Tao
Lian Lian

DOI:

https://doi.org/10.54097/936dgc42

Keywords:

Digital Financial Literacy, Retirement Assets, Use of Digital Tools, Life Insurance Coverage, Household Risk Attitudes

Abstract

The development of digitalization has raised higher requirements for the elderly care security capabilities of household digital finance. Based on the 2019 China Household Finance Survey (CHFS) data, this paper selects a sample of 29,990 households to evaluate household pension asset allocation from three aspects: types of pension financial assets, proportion of pension assets, and life insurance coverage. Ordered Probit, fractional Logit, and Probit models are respectively constructed to conduct benchmark regression analysis on how digital financial literacy affects household pension. The study finds that digital financial literacy not only promotes households to increase the variety and proportion of pension assets they hold but also encourages them to purchase life insurance for retirement protection. Further research indicates that the use of digital tools and household risk attitudes constitute two pathways through which digital financial literacy influences household pension. However, such effects exhibit heterogeneity in urban-rural structures and household health conditions. The conclusions of this paper provide important insights for empowering household pension through digital finance.

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