Asset accumulation and decumulation over the life cycle

We review the literature on the role of financial literacy in planning wealth patterns over the life cycle. We initially look at the first stage of the life cycle, when individuals are active in the labor market and wealth increases over age, and we focus on the role of financial literacy in fostering wealth accumulation. Financial literacy also matters in portfolio composition efficiency. A subtopic that we also explore is whether financial literacy can help individuals better plan asset depletion in the last part of their life cycle. We emphasize housing, since the majority of household wealth is tied to housing assets.