A large study led by Hiroshima University in collaboration with Rakuten Securities suggests that financial education may need to evolve as financial services become increasingly digital. Researchers found that practical digital skills, positive financial attitudes and the ability to protect oneself from online financial risks were more consistently associated with lower anxiety about old age than traditional financial knowledge alone.

Financial education has traditionally focused on core concepts such as interest rates, inflation and risk diversification, often known as the “Big Three” of financial literacy. While this knowledge remains important and has been linked to better retirement planning and reduced anxiety about later life, researchers questioned whether it fully reflects the capabilities people need in today’s digital financial environment. The findings were published in the International Journal of Financial Studies on June 1, 2026.

The researchers analysed data from 94,695 digitally active Japanese retail investors aged 40 to 64, examining the relationship between different components of digital financial literacy and self-reported anxiety about life after age 65. The data came from the 2025 “Survey on Life and Money,” an online panel survey jointly administered by Rakuten Securities and Yoshihiko Kadoya’s laboratory at Hiroshima University. “We examined whether the traditional ‘Big Three’ financial knowledge component shows the same association with old-age anxiety as more practical and protective components of digital financial literacy,” said Kadoya, a professor at Hiroshima University’s Graduate School of Humanities and Social Sciences.

Overall, higher digital financial literacy was associated with lower old-age anxiety. However, when the researchers divided digital financial literacy into eight components, significant differences emerged. Traditional knowledge of interest rates, inflation and risk diversification did not show the same robust association with reduced anxiety once other digital financial competencies were considered. In contrast, practical know-how, positive financial attitudes and self-protection were more consistently linked to lower anxiety. The researchers stress that this does not make traditional financial knowledge unimportant, but suggests knowledge alone may be an incomplete measure of financial capability.

The team interprets the findings through an “awareness–actionability” perspective. Financial knowledge can help people recognise retirement risks, including inflation, market volatility and longevity risk. Still, awareness may not ease anxiety if individuals lack the skills to act on that information. Practical digital abilities and self-protection may be particularly important for middle-aged and older investors approaching retirement. “Traditional financial literacy is like knowing the rules of the road, while digital financial literacy also requires being able to drive safely in real traffic,” Kadoya explained. The findings suggest financial education should help people understand concepts, use digital services effectively, make informed decisions and protect themselves from fraud and other online risks.

The authors caution that the study identifies associations rather than causal effects. Its cross-sectional data came from digitally active securities account holders rather than the general population, and old-age anxiety was measured using a single survey question. Further longitudinal and experimental research is needed to determine whether strengthening practical digital financial skills can directly reduce anxiety over time. Nevertheless, the study indicates that financial education and customer support may need to move beyond simply providing information. “Rather than replacing traditional financial education, we hope this research will help expand it—from simply knowing financial concepts to being able to use, judge, and protect oneself in digital financial environments,” Kadoya concluded.

More information: Jargalmaa Amarsanaa et al, Knowledge, Actionable Digital Skills, and Old-Age Anxiety: Evidence from Digital Financial Literacy Components Among Japanese Retail Investors, International Journal of Financial Studies. DOI: 10.3390/ijfs14060139

Journal information: International Journal of Financial Studies Provided by Hiroshima University