Retirement in Jeopardy for Financially Uninformed Americans

Three out of five adults believe financial education leads to retirement readiness.

“Three out of five” might lead a person to believe that Americans are at least attempting to educate themselves on financial issues – but that’s not the case. According to the latest research by Genworth, a company dedicated to helping people secure their financial lives, only 46 percent of the over 1,000 adults surveyed actively seek out financial knowledge.

Dr. Barbara Nusbaum, a New York-based psychologist and money coach says, “It is not lack of access to information that is holding many Americans back from improving their understanding of financial matters. Rather, it is a feeling of being overwhelmed – by the complexity of financial products…”

Additional information gleaned from the study includes:

  • Forty-five percent of adults surveyed complain about the complexity of financial products
  • Thirty-seven percent say lack of time prevents them from educating themselves
  • Eighteen percent say they don’t know how to get started

Gender difference

The difference between the percentage of men and women educating themselves on financial issues is shocking. Sixty-one percent of men surveyed say they “actively” seek out knowledge while only 34 percent of women do the same.

Dr. Nusbaum offers these tips for men and women:

  • Make financial literacy personal. List the now, later and much-later hopes and life events you want for yourself and family.
  • Speak to a financial professional who can help you reach and secure these “hope-fors”. Find a financial professional through friends, colleagues and family.
  • If it’s hard to find time, start with small, easy steps like educating yourself on financial websites.

Gary Herman, President of Consolidated Credit, adds another key tip…

“There is no replacement for budgeting. If you don’t budget for retirement or for building a nest egg for unexpected costs then chances are you’ll have neither when you need them. And you won’t know how to build a budget if you don’t educate yourself. Look online for free materials to help you get started.”

If you need assistance preparing for retirement or for creating a budget, don’t hesitate to contact one of Consolidated Credit’s certified credit counselors or get started online with a request for a Free Debt Analysis.

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