A new survey by The American College of Financial Services found three in four retirement-age Americans fail a quiz on how to make their nest eggs last throughout retirement and fewer than 1 percent ace the test.
Quiz takers between the ages of 60 to 75 with at least $100,000 in assets didn’t know much about a variety of vital topics, including paying for long-term care expenses, investment considerations, strategies for sustaining income throughout retirement and life expectancy.
“Over the next 12 years, an estimated 10,000 Baby Boomers will reach the age 65 every day,” said David Littell, Retirement Income Program Co-Director at The American College of Financial Services. “More and more Americans are retiring but so few understand basic facts and strategies when it comes to ensuring that their retirement is a comfortable one. The results of this survey are alarming and a stark reminder of the need to be prepared for the decades in retirement when you are not earning a steady stream of income.”
Retirement literacy rates appear to correlate with better retirement planning. Respondents who passed the quiz were:
46 percent more likely to have a long-term care plan in place
36 percent more likely to feel confident they could manage their own investments throughout retirement
16 percent more likely to have a written plan in place
ACFS’s Littell and Jamie Hopkins will discuss the findings on a webcast held at 1:00pm ET on Wednesday, June 21, 2017. Register for the free, live webcast here: http://knowledge.theamericancollege.edu/ricp-literacy-survey-webcast-register-now/
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