Americans tend to overestimate how many years they will be able to keep working, while they tend to underestimate how long they will live.
That was among the findings of the 2020 Retirement Income Literacy Survey taken by The American College. The study showed that consumers have a wide knowledge gap in retirement income literacy and they struggle with awareness of basic investment management.
The survey showed four in five Americans ages 50-75 fail to understand the basics of planning for a financially secure retirement. Retirees as well as pre-retirees lacked knowledge surrounding income in retirement, basic investment management and planning for long-term care needs.
89% of women failed retirement literacy quiz: Study
But older women are more willing to seek financial planning help than men, according to a survey by The American College of Financial Services.
January 14, 2021 3 MINS
When it comes to retirement literacy, most Americans get a failing grade. According to newly released research by The American College of Financial Services, women fare worse than men, with 89% of female participants flunking a 38-question quiz, compared to 72% of men.
The 2020 Retirement Income Literacy Survey tested consumers’ knowledge of retirement income concepts and focused on the drawdown phase of retirement planning. The results are based on online interviews with 1,500 Americans ages 50 to 75 with at least $100,000 of household assets.