Retirement planning decisions are growing increasingly complex in America, and older workers are facing critical financial choices in the latter years of their professional lives. Making optimal choices, however, requires an increasing level of financial literacy and knowledge.
A 2010 North Carolina State University study for the National Bureau of Economic Research, “The Role of Financial Literacy in Determining Retirement Plans” (PDF), surveyed more than 1,500 older workers at three different U.S. corporations to evaluate the quality of individual decision-making. The study’s authors note that while the “snapshot” of the three companies surveyed is not nationally representative, it does provide insights into how retirement decisions are being approached.
The study’s findings include:
The study’s authors conclude that the survey suggests that many workers “are not well informed about company and national retirement plans and that incorrect knowledge affects retirement plans.” They suggest that educational programs to improve financial literacy could help older workers better achieve optimal retirement outcomes.
Tags: aging, consumer affairs, retirement, Social Security