Chapter 2: The Relationships Between Financial Literacy and Individual Pension System and a Perspective for Renewable Energy Investments^*

The main purpose of this study is to measure financial literacy of individual pension system customers in Ankara and to find out factors affecting financial literacy while acquiring additional information on financial decisions of individual pension system customers. The results show that the self-financial knowledge evaluation of individual pension system customers and their financial literacy are not compatible. Besides, the financial literacy levels of the customers who make their investment themselves and customers who leave investment decision to the individual pension system company are found not to be statistically significant although self-investors believe they have higher financial knowledge. In addition to this, the effects of financial literacy level in terms of renewable energy investments are also evaluated. Individuals with an increasing level of financial literacy may turn to renewable energy sources and investments because of their low-cost and high-return potential.