A survey released recently by the American College of Financial Services reveals that when it comes to retirement literacy, many Americans leave a lot to be desired.
In fact, 80 percent of survey respondents “failed” the quiz they were given, which tested retirement planning skills and general retirement finance literacy.
Over 1,000 respondents were asked questioned about retirement and retirement planning, ability to maintain lifestyle, income generation and other retirement topics.
Here are some of the key results, summarized by USA Today:
* Only 1 in 4 have a written financial plan, even though a written plan leads to better financial planning and financial decisions.
* A significant minority have never tried to figure out how much they need to accumulate to retire securely.
* Only 31% know that $4,000 is the most they can afford to withdraw per year from a $100,000 retirement account to make it last for 30 years.
* More than half underestimate the life expectancy of a 65-year-old man, which suggests they may not realize how long their assets must last.
* Only 54% realize that Social Security benefits increase each year one delays up to age 70, and a similar percentage know that it is best to wait until age 70 to claim Social Security if you expect to live to 90.
More details on the survey’s methodology:
Respondents were asked knowledge, behavior and attitudinal questions on the following topics: retirement and retirement planning, ability to maintain lifestyle, income generation, annuity product knowledge, Social Security, life expectancy, death of a spouse, taxes, inflation, housing, medical insurance and long-term care.
Information for this study was gathered through online interviews conducted between July 17-25, 2014. A total of 1,019 Americans were interviewed. To qualify for participation in the study, respondents had to be ages 60-75 and have at least $100,000 in household assets, not including their primary residence.
You can read the full survey results here.
Photo by Max Klingensmith via Flickr CC License
