Are Americans Educated on Retirement Savings?

This article is courtesy of the Social Security Adminitration

Financial education helps people learn about savings, credit, and loans. It also helps them prepare for life changes and the unexpected. When planning for retirement financial knowledge is essential.

So, how prepared are adults in the United States for their retirement? The National Endowment for Financial Education (NEFE) conducts polls on how retirement savings affect people’s financial well-being.

Here’s what we have learned:

⦁    In a financial well-being poll conducted during the COVID-19 pandemic, 85% of respondents confirmed that some aspect of their personal finances was causing them stress. For 31% of respondents, that concern was “having enough saved for retirement.”

⦁    In that same poll, 70% said they made financial adjustments due to the COVID-19 pandemic. Of that group, 27% increased contributions to their emergency savings, retirement savings, or other savings or investments. In comparison, 21% tapped into emergency savings—or borrowed against retirement savings.

⦁    In a poll about financial education mandates, 80% of adults said they wish they were required to complete a semester- or year-long course focused on personal finance education during high school. Also, 88% think their state should require a semester- or year-long course for high school graduation.

⦁    In that same poll, 84% of those approaching retirement age said “spending and budgeting” should be taught in schools.

Lifetime financial education is helpful when it comes to retirement preparation. This includes understanding Social Security retirement benefits and making the most of retirement income. You can learn more on our Retirement webpage at www.ssa.gov/retirement.

A personal my Social Security account should be a part of your financial plan. With an account, you can verify your earnings history, get personalized retirement benefit estimates, and more. If you don’t have an account, you can easily create one at www.ssa.gov/myaccount.

To learn more about NEFE, visit their website at www.nefe.org.