Only 1 in 5 Americans ages 50 to 75 passed a recent retirement income literacy quiz from the American College of Financial Services. The college asked more than 1,500 retirees and people nearing retirement about topics like investing, medical care, and Social Security.
Only a third of those surveyed consider themselves highly knowledgeable about retirement income planning. The overall average score was just 42%.
More than half of respondents underestimated life expectancy, and only 32% knew how much they could safely withdraw from a retirement account. This suggests that most people who took the quiz may not realize how long their money has to last or how much they need to have saved.
We selected six questions from the 38 in the original quiz that we think most pertain to Grow readers. Take the abbreviated quiz, below, to see how much you know about planning for retirement and where you may need to fill in some gaps.
If you don't know all the answers, don't fret. We'll give you resources to help you learn.