This study examines the association between financial literacy confidence and financial satisfaction among Asian Americans using the 2021 National Financial Capability Study (NFCS) AAPI oversample. The findings emphasize the significant role of financial confidence—both overconfidence and underconfidence—in shaping retirement planning behaviors and overall financial satisfaction among Asian Americans. Underconfident individuals were less likely to engage in retirement planning and reported lower financial satisfaction. In contrast, overconfident individuals, despite not exhibiting more proactive retirement planning, reported higher levels of financial satisfaction. Mediation analysis further indicates that underconfidence leads to reduced retirement planning, which, in turn, results in lower financial satisfaction. The findings of this study suggest that financial professionals could benefit from helping underconfident individuals build their financial literacy and encourage proactive retirement planning, while also tempering overconfident individuals' decision-making to ensure they make informed, long-term financial choices. Additionally, promoting the value of retirement planning, particularly non-employer-sponsored accounts, could improve financial satisfaction.
