The shift to defined contribution pensions requires people to be knowledgeable about finance and economics, yet evidence suggests that even basic numeracy is poor amongst a sizeable proportion of working adults. This chapter discussed the evidence and the provision of financial education programmes that are designed to address the problem. It then goes on to consider ways of improving financial education and alternative ways of stimulating retirement planning.

This chapter discusses the Italian experience in developing its system of private, supplementary pensions, as a case study of the implementation of nation-wide auto-enrolment mechanisms; in the discussion, attention is devoted to pension awareness issues. The reasons for the limited success of auto-enrolment in Italy are summarised. Besides the importance of country-specific structural issues, the need for an overall, coherent, pension strategy is underlined, together with a consistent use of the different policy instruments available: not only in order to achieve the desired membership targets, but also as a prerequisite for effective awareness campaigns and education efforts. In addition, the chapter stresses the need for a balance of responsibilities between the individual, the State, and intermediate bodies (such as social partners), with appropriate default options that should back-up the individual when he/she is unable or unwilling to choose.