Only 26% Of Older Americans Are Retirement-Literate — Find Out If You Can Do Better

Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

A recently published research study in the Journal of Financial Planning shows that financial literacy has a huge impact on having a more financially secure retirement. The research consisted of data collected from roughly 1,200 Americans between the ages of 60 and 75, with at least $100,000 of investable assets – the data set excludes many lower income Americans.

Conducted by The American College of Financial Services, the research asked a number of questions around retirement, financial planning and other financial areas aimed at gauging both America’s retirement income preparedness and their literacy rates. The results, while perhaps not shocking, were troubling.

Americans on the whole performed poorly on the retirement income literacy quiz, which asked 38 questions over a variety of different topics including taxes, Medicare, Social Security and retirement plans like 401(k)s. Only 26 percent of respondents were able to pass the quiz with a score of 60 percent or higher. The mean score was a little bit less than 50 percent.

Want to see how you stack up? Take the same quiz here.

The quiz questions were organized into topic areas across twelve different categories. Respondents scored highest on the Medicare planning questions (while also indicating the highest level of concern about changes) and scored lowest on annuity products. Women respondents were especially concerned about how changes to Medicare would impact their retirement security.

While literacy rates were fairly low, confidence remained high with most respondents indicating they were moderately to extremely confident that they would have enough money for retirement. However, the research showed that this was likely higher than the average American due to the investable asset requirement of $100,000 minimum to qualify for the survey. Those with higher assets in the survey were more likely to feel confident about their own retirement preparedness, so it is likely that lower wealth individuals not captured in the survey would feel less confident.

Read in Forbes

Share:
facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.
Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

RECENT POSTS

When Financial Advisors Become Philanthropists

Within the next few days, as soon as the weather in Omaha, Neb., clears, an elderly, impoverished, and terminally ill man will experience a hot-air balloon ride for the first — and likely last — time in his life. Footing the bill for this dying wish is financial advisor Ron Cars …

5 Factors to Consider Before Investing in an ETF

There are now over 1,600 exchange-traded products available to investors, and total assets are quickly approaching $2 trillion. Traditionally, the primary way an investor could get access to a diversified portfolio of stocks was through a mutual fund. But today, many of these investment pro …

Your Financial Advisor Disappeared…What Do You Do?

In the last few years, financial advisor Ron Carson has observed prospective clients increasingly asking whether his firm has a succession plan in place. Luckily, he does, and he is happy to describe it to them.
1 2 3 23 24 25 26 27 28

Get in Touch

In just 15 minutes we can get to know your situation, then connect you with an advisor committed to helping you pursue true wealth.

Schedule a Consultation