Are Americans Financially Educated on Retirement Savings?

Financial education helps people learn about savings, credit, and loans. It also helps prepare people for life changes and to weather the unexpected. This knowledge is essential when planning for retirement.

So, how prepared are U.S. adults for their future retirement? At the National Endowment for Financial Education (NEFE), we poll on key issues related to a person’s financial past, present, and future. This includes retirement savings.

Here’s what we have learned over the past year:

• In our financial well-being poll conducted during the COVID-19 pandemic, 85% of respondents confirmed some part of their personal finances was causing them stress. For 31% of respondents, that concern was “having enough saved for retirement.”
• In that same poll, 70% said they made financial adjustments due to the COVID-19 pandemic. Of that group, 27% increased contributions to their emergency savings, retirement savings, or other savings or investments. In comparison, 21% tapped into emergency savings—or borrowed against retirement savings.
• In a poll about financial education mandates, 80% of U.S. adults said they wish they were required to complete a semester- or yearlong course focused on personal finance education during high school and 88% think their state should require a semester- or year-long course for high school graduation.
• In that same poll, 84% of those approaching retirement age (60+ years old) said “spending and budgeting” should be taught in schools.

People who champion financial education typically live by the mantra “the earlier, the better.” It’s also important, though, that people keep learning throughout their lives to ensure they have the knowledge they need to make the best financial decisions.

Lifetime financial education can be a helpful tool in preparing for retirement. This includes understanding Social Security retirement benefits and making the most of retirement income.

A personal my Social Security account should be a part of your financial plan. With a secure my Social Security account, you can verify your earnings history, get personalized retirement benefit estimates, and more.

To learn more about NEFE’s mission, visit our website. Please share this information with friends and family who need it.

Our posting of this blog does not constitute an endorsement or recommendation of any non-Social Security organization, author, or webpages.