The American College New York Life Center for Retirement Income asked Greenwald & Associates to conduct the 2017 RICP® Retirement Income Literacy Survey, a comprehensive survey testing retirement income literacy. The goal was to determine whether retirees and pre-retirees have the knowledge they need to successfully plan for a financially secure retirement. This survey is a follow-up of the 2014 RICP® Retirement Income Literacy Survey, which had a similar methodology and questionnaire.
This is one of the most comprehensive surveys of retirement income literacy ever conducted. While there has been a good deal of attention on financial literacy, almost all of those studies have focused on the accumulation period. This study focuses on those ages 60-75, a period where issues such as how best to withdraw income from assets come into play and knowledge of how to make optimal decisions about managing finances in retirement is critical.
Online interviews were conducted with 1,244 Americans ages 60-75 with at least $100,000 in household assets (not including their primary residence). The survey included 38 quiz questions in 12 relevant topic areas: retirement planning, ability to maintain lifestyle, income generation, annuity product knowledge, Social Security, life expectancy, death of a spouse, taxes, inflation, housing, medical insurance, and long-term care. Just 26% of those surveyed passed the quiz.
Check your retirement income literacy by taking the 38-question quiz.
Don't have time to take the whole quiz? Take a quick 6-question quiz to check your retirement income literacy!