Does financial education influence retirement savings? An examination of Australian employees

In order to ensure a financially secure retirement, Australians will need to plan and save for their retirement many decades before they retire.

The age pension, paid for out of Commonwealth government taxes is currently the backbone of the retirement system, but will not replace as much pre-retirement income in the future as it does today. Given the shift from the defined benefit style to the accumulation style, superannuation funds involve considerably more uncertainty, and as such, one might have thought that individuals would be saving more on their own. But personal saving outside of superannuation plans is virtually non-existent. Combine the retirement income crunch with the dramatic increase in life expectancy, and the need for careful retirement planning and sacrificing current consumption for later consumption becomes imperative for ensuring the financial security of older Australians. The hard question is whether individuals will be prepared to make the necessary sacrifices today to ensure a more secure financial future in retirement? This paper explores the willingness of individuals to make these sacrifices, and whether financial education can influence individuals in this difficult decision.

Evaluating the impact of financial literacy programs on the retirement savings of superannuation fund members

Currently, in Australia, the age pension, paid for out of Commonwealth government taxes, forms the basis of Australia’s retirement income system, however, given the reality of an ageing population has compelled the government to undertake a number of measures to shift the responsibility for saving to the individual, forcing them to accept an increasing level of responsibility for their financial decision-making. In the light of the changing retirement environment, it would be expected that Australians’ would ensure that they became financially literate, however, despite the amount of information and advice available in the market place, this is not the case, and they do not appear to be appropriately prepared for their retirement. Recognising the importance of financial literacy, an increasing number of government agencies, employers, superannuation funds and schools are implementing financial literacy programs in Australia. This article provides an overview of the impact that attending a financial education seminar has on the retirement decisions and settings of participants. Evidence is provided from this research that in the short term, providing financial education programs make a difference to an individual’s intended retirement settings. However, the impact of these education programs in changing investment behaviour is less conclusive.

Exchange rate exposure, foreign currency derivatives and the introduction of the euro: French evidence

We investigate the impact of the introduction of the Euro on exchange rate exposures for French corporations and examine the corporate use of foreign currency derivatives to hedge exchange rate exposure post-Euro. Our findings indicate that the introduction of the Euro is associated with both a reduction in the number of firms that have significant exchange rate exposure and the absolute size of exposure. Consistent with these reduced exposures, French firms use foreign currency derivatives less intensively. Furthermore, the use of foreign currency derivatives is found to be associated with lower exchange rate exposure but there is insufficient evidence that these instruments are more effective in the post-Euro environment.

Ministers, mandarins and diplomats : Australian foreign policy making, 1941-1969

This volume explores key aspects of the development of the Australian Department of External Affairs in the three decades from 1941 to 1969 as it evolved from a small amateur department to a highly professional global operation.

Australian conditions imposed in stay of foreign arbitration matter

In Walter Rau Neusser Oel Und Fett AG v Cross Pacific Trading Ltd, the construction of arbitration clauses and the operation of s.7 of the International Arbitration Act 1974 (Cth) were considered - scope of the arbitration issue, mandatory stay issue and discretionary stay issue were examined.

Decisionmaking in a glass house : mass media, public opinion, and American and European foreign policy in the 21st century

"Decisionmaking in a Glass House: Mass Media, Public Opinion, and American and European Foreign Policy in the 21st Century" edited by Brigitte L. Nacos, Robert Y. Shapiro and Pierangelo Isernia is reviewed.

Our wicked foreign game : why has association football (Soccer) not became the main code of football in Australia?

This essay examines the role of soccer in Australian popular life, emphasizing the game's position of secondary importance to rugby or Australian Rules in different regions. It draws on international comparisons with the USA or white British colonies to argue that in a uniquely multicultural country like Australia with established sporting traditions, domestic experience of the game could shape the past, present and future of soccer in the country. Given the cultural diversity of the state, it should work towards a strategic competitive advantage for the popularization of soccer in contemporary Australia

Product evaluation and purchase intention : impact of country-of-origin and experience in living in a foreign country

This article presents the results of an experiment that compares the perceptions of product quality and purchase intentions of foreign versus home products by Chinese consumers who have had experience living in a western society compared to those living in China. The results indicate experience does affect purchase likelihood for home versus foreign products. Chinese, generally, find country of parts as the best cue in evaluating product quality and purchase intentions.

Fixers and foreign correspondents : news production and autonomy

The television foreign correspondent's licence to roam and generate news is increasingly under threat. This paper concentrates on the micro production processes of today s correspondent as he or she goes about the job of newsgathering 'on the road', and considers the changing nature of the correspondent's autonomy. It inserts the missing character in foreign newsgathering - the locally hired fixer - and explores how this person affects the correspondent's autonomy. An analysis of interviews with 20 foreign correspondents and five fixers leads to the conclusion that the foreign correspondent is rarely the sole editorial figure on the road but is instead the main actor representing the creative interplay of a succession of fixers or 'local producers'. This deconstruction of the ways in which a correspondent builds an ad-hoc newsgathering team each time he or she lands in d new place allows for a deeper understanding of the modus operandi of reporters.

A strategy taxonomy for foreign direct investment in China

Taxonomies explaining internationalisation strategy are effective in relating connected variables to the decisionmaking process and entry mode strategies of organisations. Almost no taxonomies for entry modes into China exist, where the local conditions affecting entry are significantly different to those in other countries have been developed. The taxonomy developed in this paper from research into 40 Australian companies which had successfully and unsuccessfully internationalised into China identified resource transferability and international experience as connected variables that can categorise the factors of entry choice. High levels of resource transferability lead to contracting partnerships or wholly owned foreign enterprises. Low levels led to importing or joint ventures. High levels of international experience led to wholly-owned foreign enterprises or joint ventures. Low levels led to contracting partnerships or importing. The factors that drive these decisions were developed using a framework of resource-based view constructs, supporting the application of the resource-based view to internationalisation strategy.

Savings behaviour in Fiji : an empirical assessment using the ARDL approach to cointegration

Purpose – This paper aims to delineate the short- and long-run relationships between savings, real interest rate, income, current account deficits (CADs) and age dependency ratio in Fiji using cointegration and error correction models over the period 1968-2000.

Design/methodology/approach – The recently developed bounds testing approach to cointegration is used, which is applicable irrespective of whether the underlying variables are integrated of order one or order zero. Given the small sample size in this study, appropriate critical values were extracted from Narayan. To estimate the short- and long-run elasticities, the autoregressive distributed-lag model is used.

Findings – In the short- and long-run: a 1 per cent increase in growth rate increases savings by over 0.07 and 0.5 per cent, respectively; a 1 per cent increase in the CAD reduces savings rate by 0.01 and 0.02 per cent, respectively; and the negative coefficient on the real interest rate implies that the income effect dominates the substitution effect, while in the short-run the total effect of the real interest rate is positive, implying that the substitution effect dominates the income effect.

Originality/value – This paper makes the first attempt at estimating the savings function for the Fiji Islands. Given that Fiji's capital market is poorly developed, the empirical findings here have direct policy relevance.