Role of Financial Literacy on Risk Management in Financial Retirement Planning

Abstract

In the framework of retirement planning, this conceptual study investigates the connection between risk management and financial literacy. Acquiring the knowledge and abilities required to make well-informed retirement planning decisions is largely dependent on financial literacy. It draws attention to the ways that financial literacy affects people's capacity to recognise, evaluate, and reduce retirement-related financial risks. This paper summarises the theoretical foundations of retirement planning, investigates the influence on risk perception and decision-making, and suggests strategies for improving risk management through financial literacy to enhance retirement outcomes by synthesising the body of available evidence.