What older women don’t know about retirement could certainly hurt them.
According to a study focusing on Americans of retirement age, both men and women display startling low financial literacy – however, women passed a simple test of financial knowledge at half the rate of men.
When the Bryn Mawr, Pa.-based American College of Financial Services New York Life Center for Retirement Income asked Americans age 60 to 74 to take a 38-question quiz on retirement income topics, only 35 percent of men and 18 percent of women were able to pass the test by answering 23 questions or more correctly for a score of 61 percent or higher.
In findings released in the 2017 RICP Retirement Income Literacy Gender Differences Report, men were able to answer 20 of the questions correct on average, while women averaged 16 correct answers.
“Women face considerable challenges when it comes to preparing for retirement, and lacking financial literacy certainly does not help the cause,” said Jocelyn Wright, State Farm Chair in Women and Financial Services and assistant professor of women’s studies at The American College, in a released statement. “This is a problem, especially when a female at age 65 can expect to live another 20 years on average, two years longer than the average man.