People who possess a greater understanding of finance tend to accumulate more assets and income during their lifetime, and therefore they are less likely to fret about life in their twilight years, suggests new research.

Financial literacy increases our awareness about financial products, builds a capacity to compare all available financial options, and changes our financial behaviour - all which bodes well for our perceptions of, and actual experiences during our seniority, said one of the researchers Yoshihiko Kadoya, Associate Professor at Hiroshima University in Japan.

For the study, researchers asked people from across Japan to answer questions assessing their calculation skills, understanding of pricing behaviour, and financial securities such as bonds and stocks.

Respondents were also asked about their accumulated wealth, assets, and lifestyle - and to rate the level of anxiety they felt about life beyond 65.

Men, and those with a higher level of education are more financially clued-in than women, and those with less education respectively, the findings, published in Journal of Risk Research, showed.

The researchers also found that more financially literate earn and accumulate more during their lifetime -- and thus worry less about growing old. It also appears that financial literacy helps shape people's perception towards risk and uncertainty - making them more capable and confident in tackling whatever problems life throws at them.