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HALF of Americans over the age of 30 can't explain what a 401(k) is - and only a third actually have one

Many Americans are sorely lacking in knowledge when it comes to basic finances, according to new research.

A recent study of 1,000 Americans sought to discover how much people know about their own finances, as well as common financial concepts like interest, bankruptcy, and inflation.

Most dishearteningly, it found that less than half of participants over the age of 30 could confidently explain what a 401(k) is.

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The research, commissioned by GuideVine — a service matching people with financial advisers — focused on 1,000 people age 30 and over

It revealed that over half of those polled (55 per cent) feel lost when it comes to a long-term and stable financial plan.

And only 30 per cent of those studied said their current earning and budget enabled them to make a proper financial plan. Just 13 per cent had a five-year plan for their finances.

That might be why many forecast a less-than-positive future for themselves financially. More than a quarter (27 percent) of the over-30's polled felt they'll never become homeowners.

Nearly a third (31 per cent) could never envisage a life for themselves where they would never be in some sort of debt, and a similar number (36 percent) said a comfortable retirement isn't on the cards for them.

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Much of that may be due to lack of financial literacy. While less than half could explain what a 401k is, 48 per cent could define interest, 34 per cent could explain inflation, and 48 percent said they understood the concept of bankruptcy.

(While the statistics about understanding a 401k seem bleak, it's actually worse: According to Census data, just 32 per cent of Americans are actually saving into a 401k.)

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Read more: http://www.dailymail.co.uk/femail/article-5272663/HALF-Ameri...
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Ayup. That's why we have Social Security, until it's gutted so the money can be handed to the rich. That's why we used to have employer paid pension plans, before they were terminated and the cost offloaded onto the employees.

Does anyone think it's purely a coincidence that the elimination of conventional pensions occurred over the same period as the draw down of savings and accumulation of debt that has fueled the "supply side economic miracle" of the last 35 years?

Steve
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25% of US population has an IQ below 90. They were not well served with the elimination of company pensions then exposure to slick investment sales persons.
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Don’t what happened to my previous post.
25% of US population has an IQ below 90. They were not well served with the elimination of company pensions then exposure to slick investment sales persons.
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25% of US population has an IQ below 90. They were not well served with the elimination of company pensions then exposure to slick investment sales persons.

The changes promoted transfer of wealth to the "job creator class" (translation, made those people easier to fleece), which, we are assured, is the path to economic utopia.

Steve
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Don’t what happened to my previous post.

You somehow got the selection
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instead of
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