The worldwide pension reform has increasingly transferred pension responsibilities to individuals, individual needs reasonable consumption, savings and investment to make informed intertemporal decision. Global survey found that financial literacy is uneven, which is a significant factor of the pension plan and pension saving. This paper does an analysis and summary about the empirical study of the residents' financial literacy , investigating on Residents' financial literacy status in Shanghai City, and conduct a descriptive analysis of the financial literacy of residents, put forward a policy recommendations of strengthening financial education