Annamaria Lusardi and Olivia S. Mitchell examine financial literacy and retirement preparedness, highlighting the widespread financial illiteracy among households, particularly in the U.S. and other countries. Many people lack basic financial knowledge, which affects their ability to save, plan for retirement, and make informed financial decisions. Governments and organizations have initiated programs to improve financial literacy, drawing on examples from Japan and Sweden. Financial education is crucial for helping individuals understand financial concepts and make better decisions. The study finds that financial literacy is closely linked to retirement planning, with more financially literate individuals more likely to plan for retirement. However, many people are overconfident in their financial knowledge, which may prevent them from seeking professional advice. The paper also discusses the impact of financial education programs, such as retirement seminars, which can improve financial literacy and retirement savings. Historical examples, such as Japan's saving campaign and Sweden's pension privatization, show the importance of financial education in promoting saving. The study concludes that financial education is essential for improving retirement preparedness, and that targeted education programs can be effective in addressing financial illiteracy among specific population groups.Annamaria Lusardi and Olivia S. Mitchell examine financial literacy and retirement preparedness, highlighting the widespread financial illiteracy among households, particularly in the U.S. and other countries. Many people lack basic financial knowledge, which affects their ability to save, plan for retirement, and make informed financial decisions. Governments and organizations have initiated programs to improve financial literacy, drawing on examples from Japan and Sweden. Financial education is crucial for helping individuals understand financial concepts and make better decisions. The study finds that financial literacy is closely linked to retirement planning, with more financially literate individuals more likely to plan for retirement. However, many people are overconfident in their financial knowledge, which may prevent them from seeking professional advice. The paper also discusses the impact of financial education programs, such as retirement seminars, which can improve financial literacy and retirement savings. Historical examples, such as Japan's saving campaign and Sweden's pension privatization, show the importance of financial education in promoting saving. The study concludes that financial education is essential for improving retirement preparedness, and that targeted education programs can be effective in addressing financial illiteracy among specific population groups.