Key Factors in Retirement Income Literacy
Relevant knowledge improves with age and assets, but advisor guidance is the most empowering differentiator.
Demographic Differentiators
Retirement planning knowledge is highly variable across different parts of society. Generally, more assets, higher education, male gender, White or “Other” race, and greater life experience (including age and retirement status) correlate to higher Retirement Income Literacy Scores.
Older respondents score higher than younger respondents.
Men consistently score higher than women, currently and in the past.
White and “Other” respondents, including Asian/AAPI respondents, score higher than Black and Hispanic respondents.
Respondents who have earned advanced degrees score highest, followed by college graduates.
Respondents score higher the more investable assets they have.
Retired respondents score higher than non-retired respondents.
Working With a Financial Advisor
The study establishes a compelling link between retirement literacy and working directly with a financial advisor. On average, respondents who work with financial advisors have significantly higher Retirement Income Literacy Scores than those who don’t—the advisor relationship correlates to an 11-point boost overall.
In addition to the overall average score, respondents who work with financial advisors score higher on every knowledge area than their counterparts who go it alone. Advised respondents also have significantly higher levels of confidence about retirement.
Your Life's Work
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