The CREEi working paper #21-06, “Financial Literacy and the Timing of Tax-Preferred Savings Account Withdrawals,” is now available online.

Co-authored by Marianne Laurin, Derek Messacar and Pierre-Carl Michaud (Chair co-holder), the working paper is based on Canadian data. The authors explore the link between financial literacy and tax mistakes in the use of tax-preferred savings account.

More specifically, the authors investigate the extent to which pre-retirement savings withdrawals respond to changes in the net-of-tax benefit of withdrawing and determine that financial literacy is an important determinant of the extent to which tax-deductible savings plans are used efficiently.

To read the paper