What Is 'Financial Literacy,' And Why Does It Matter? Elizabeth Bauer Contributor i Retirement I write about retirement policy from an actuary's perspective. Shutterstock Americans aren't saving enough for retirement. That's a trite statement. Precisely how great the shortfall is, is in dispute, of course, as is the question of what remedies, if any, should be undertaken. But what's the reason for this savings shortfall? Discarding specifics like "no more traditional pension plans," there are three potential reasons, each taking some portion of the blame, and each interconnected with the other: Americans don't have the knowledge needed to save for retirement. Americans don't have the self-discipline to save for retirement. Americans don't have the excess funds to save for retirement. "Financial literacy" is the catch-all name for initiatives around education that, it's hoped, wi