Building Knowledge to Save for Retirement



The American College of Financial Services recently released its latest study on the preparedness of America’s retirees. It was not a pretty sight.

Why should we worry about this? It has been found that improving financial literacy supports retirement wellness AND confidence.  

As more and more Americans enter retirement age, (by 2035, older adults will outnumber minor children) it might be helpful to understand which areas of financial literacy need the greatest emphasis. 

Since most retirees can no longer depend on defined benefit retirement plans and Social Security to fully fund their living expenses, an increasing number of retirees must decide for themselves how to fund their retirement. 

Let’s look at those areas where respondents had the least level of knowledge. 

  • Annuities (average literacy score – 12%) 

  • Investments (22%) 

  • Life expectancy (27%) 

  • Retirement income (29%) 

  • Taxes (30%) 

  • Retirement plans (31%) 

  • Social Security (33%) 

  • Life insurance (33%) 

  • Medicare (42%) 

  • Housing (46%) 

  • Inflation (47%) 

Lack of knowledge of these important areas of financial literacy can be quite costly. 

Please consider doing your own research or contact a financial services professional for help in learning about these topics and how best to address these issues as you enter your “golden” years. 

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