Retirement Literacy & Outcomes
Knowledge Powers Confidence—Especially When Working With a Financial Advisor
One measure—and perhaps the most significant indicator—of retirement outcomes is confidence. The study uses a Retirement Confidence Scale based on respondents’ self-reported confidence they will: feel financially secure, have enough money to live comfortably, and do a good job handling their investments throughout retirement. The 2023 Retirement Income Literacy Study reveals the predicted probability of the highest Retirement Confidence level increases with Retirement Income Literacy Score. Put simply: As retirement planning knowledge improves, so does confidence. Working with a financial advisor amplifies this positive effect at every financial literacy level. See Key Factors.
Predicted probability measures the magnitude of impact the Retirement Income Literacy Score has on Retirement Confidence level–showing that respondents whose scores are higher have higher confidence. Retirement Confidence is measured based on respondents’ self-reported confidence that they will: feel financially secure, have enough money to live comfortably, and do a good job handling their investments throughout retirement. Quintiles represent groupings of scores, with Quintile 1 representing the lowest scores (bottom 20% of respondents) and Quintile 5 representing the highest scores (top 20% of respondents). The analysis is based on ordered logistic regression predicting the 95th percentile (highest level) of the Retirement Confidence Scale, considering Retirement Income Literacy Score and the impact of having a financial advisor, controlling for gender, age, race, marital status, net worth, and employment status.
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