Working with an advisor can help solidify a client’s financial plan, but it doesn’t necessarily mean that they know more about retirement.
Few Americans know the basics of retirement, according to The American College of Financial Services, displaying a “worrying” understanding of one of the most important financial events of their lives.
Three-in-four Americans failed to pass The American College of Financial Services’ 38-question quiz regarding strategies to make savings last through a retirement. A passing grade meant that a respondent answered at least 60 percent of the questions correctly: Only 26 percent of the quiz takers were able to do so.
Participants who worked with an advisor had lower overall levels of financial literacy, according to the College.
According to the study, the average quiz taker received a score of 47 percent. Men had a median score of 20 out of 38 correct, while women had a median score of 16 out of 38.