Americans Get Failing Grades in Retirement Knowledge
If retirement knowledge were a subject in school, 80 percent of the students would fail. The American College gave a retirement income literacy test to Americans ages 60 to 75 and found that 80 percent of them flunked. They were asked 38 retirement literacy questions on basics, such as Social Security, life expectancy, individual retirement accounts, life expectancy, individual retirement accounts, life insurance and investments, and how bonds work. Only two in 10 had passing grades, the college said. Highlights of the test results include: A significant minority have never tried to figure out how much they need to accumulate to retire securely. Only one in four has a written plan for retirement. Only 31 percent know that $4,000 is the most they can afford to withdraw per year from a $1000,000 retirement account to make it last for 30 years.