4 Out of 5 Older Women Flunk Retirement Income Literacy Quiz

Photo by StockLite / Shutterstock.com

Women might be better investors than men, but they fared worse on a recent retirement income literacy quiz.

The 38-question test is part of a study commissioned by the American College of Financial Services. The nonprofit educational institution describes it as “a basic quiz on how to make a nest egg last in retirement.” It’s also the most detailed and technical financial literacy quiz I’ve seen in recent years.

Unfortunately, women who are at retirement’s door failed it miserably.

Only 18 percent of retirement-age women were considered to have passed the test, while 35 percent of retirement-age men passed. Questions on the topic of annuity products in retirement were the most likely to trip up women and men alike.

The quiz was part of a broader survey of more than 1,200 Americans who are ages 60 to 75 and have at least $100,000 in household assets, excluding their primary home.

Jocelyn Wright, an assistant professor of women’s studies at the American College of Financial Services, says of the findings:

“Women face considerable challenges when it comes to preparing for retirement, and lacking financial literacy certainly does not help the cause. 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. With this in mind, women cannot depend on their spouse to hold the keys to their retirement.”

However, that’s exactly what some women appear to be doing. For example, The American College’s survey found that only 46 percent of women look up financial information online at least once a year, compared with 61 percent of men.

If you aren’t reviewing your finances yearly, be sure to check out:

Additionally, the survey revealed an apparent disconnect between the genders when it comes to who makes financial decisions. The American College notes:

“Men tend to think they are the primary decision maker while women tend to believe that they split the decision-making.”

More specifically, only 35 percent of men say they share decision-making with their spouse, but 80 percent of women say they share decision-making.

Ladies, whatever the case might be in your household, don’t miss “Retirement Planning — It’s Different for Women.” It will take you step by step through the process of preparing your finances for retirement.

How do you feel about this news? Share your thoughts below or over on our Facebook page.

How to find cheaper car insurance in minutes

Getting a better deal on car insurance doesn't have to be hard. You can have The Zebra, an insurance comparison site compare quotes in just a few minutes and find you the best rates. Consumers save an average of $368 per year, according to the site, so if you're ready to secure your new rate, get started now.

Read Next
Believe It: You Can Save $500,000 in 15 Years
Believe It: You Can Save $500,000 in 15 Years

Even if you’re behind in preparing for retirement, there’s still a way to pull together a solid nest egg if you focus.

This Grocery Store Is Cheaper Than Even Walmart
This Grocery Store Is Cheaper Than Even Walmart

One grocery chain is likely to save you more money than any other.

7 Things That Prove Cheaper Isn’t Always Better
7 Things That Prove Cheaper Isn’t Always Better

These items can end up costing you more if you try to go the cheap route.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Comments

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.

Trending Stories