The American College RICP® Retirement Income Literacy Survey, conducted in July 2014, evaluated the readiness of baby boomers to retire. The survey included 1,016 households with adults between the ages of 60 and 75 who had at least $100,000 in household assets, excluding their primary residence. A total of 1,019 pre-retirees were interviewed.
The questionnaire was developed to include 38 knowledge questions regarding the most pertinent retirement planning issues. These questions were developed with the input of retirement income planning researchers and practitioners, and topic areas from the Retirement Income Certified Professional®(RICP®) education program. Personal questions regarding race, gender, and confidence were also included in the survey. Several retirement income topics were covered in the survey, including: general retirement planning, the ability to maintain one’s lifestyle, retirement income generation, annuities, Social Security, life expectancy, death of a spouse, taxes, inflation, housing decisions, medical insurance, and long-term care planning.
The survey found that only roughly 20% of respondents could score 61% or better (60% and below is a failing grade). Yet 40% of survey respondents indicated that they were “highly confident” that they were financially prepared for retirement. Over 50% indicated that they were “somewhat confident” that they were prepared for retirement. Only 3% of respondents admitted that they are not confident that they are prepared for retirement.
Given the survey performance results, retirement income literacy needs drastic improvement. Working with a professional financial advisor can significantly improve your chances of a successful retirement.
If you would like to take the 38 question knowledge portion of the retirement readiness survey go to:
CFP®, FLMI, Annuity Product Manager
Call 877-935-2467 to speak with a Western Fraternal Life Representative.