Retirement readiness is affected by low literacy rates, data show

Seniors often worry about how economic factors such as inflation and the cost of living will affect retirement. However, if someone does not understand how long they can retire, their resources can quickly run out, according to a new report by the Teachers Insurance and Annuity Association of America-College Retirement Equities Fund (TIAA).

“Life expectancy literacy, like financial literacy, appears to be low among American adults,” the report said. “Most people don’t have a common understanding of how long people live in retirement. Retirees who have the ability to read and write often plan and save for retirement while still working and therefore seem to be doing better financially in retirement.”

While financial literacy is important in retirement planning, longevity can have an impact on retirement decisions, including types of investments and how long they can last. eat resources. However, the report found that higher financial status is associated with higher life expectancy.

Gender and generational divides also affect longevity, according to the report.

“Women tend to live longer to read and write than men,” the report said. “43% of women showed increased longevity compared to 32% of men.”

The researchers responded that members of the “Silent Generation” (born between 1928 and 1945) had the highest literacy rate at 46. %. Baby Boomers followed (45%), while younger generations scored lowest across the board. Generation X came in at 37%, followed by Generation Y (Millennials) at 32%, and Gen Z at 30%.

The length of the financing is a common topic discussed with mortgage brokers. As it approaches, some real estate mortgage professionals will explain how real estate mortgages can help provide more cash to people. qualified if under pressure banking or investment.

“In retirement, people usually have a set amount of dollars they can spend per month and rarely make cost-of-living adjustments to pensions or SSI to meet the real cost of goods and services. ,” said Ennkar’s Omar Ennabe in an interview last year. “When I discuss the economic climate with our clients, I advise them to always prepare for the certainty of uncertainty and to prepare for the worst case. For this reason, I advise to them to give themselves more options and more flexibility when considering a mortgage product that meets their needs / needs.

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