Most Americans are going to go out in the long run A new survey from the TIA Institute and the World Financial Literacy Center.
The study, which interviewed more than 3,300 Americans, found that the average US adult could not answer most of the pension -related questions. The survey respondents were asked a total of six questions, starting with the need for long -term care to a lifetime income.
On average, respondents correctly answered only 2.2 questions or 37% questions. Fifteen percent of the adults surveyed could not answer one question correctly.
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Financial advisers say that lack of knowledge can cause problems for Americans who want to retire. However, it also provides planners in the property management industry.
“I think the planner should actually focus on education and make sure that the client understands things,” said Charles Chuck Faila, Stamford, Connecticut, Stamford. “My job is not to say,” here is the absolute right thing, “because it is rarely clear. Instead, it means,” Here is A and B, maybe C, and here are the advantages and disadvantages of each of them. “And if I do my job correctly, then the client, even without decades of financial experience, should be able to make a decision.
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The customer’s training on their different capabilities is a very important part of the Failla job, but he said he also does not expect the customers to become the experts themselves.
“I could become a drywall expert, but I’m not interested in it, so I’m hiring people. Like I, it’s not what I want to learn,” Failla said. “These are all taught things. But you have to understand if someone comes to your office, by definition they are not … as financially literate as you.”
Even for people who would like to pay something to manage their financial planning, FAILLA said it is very important to ensure that the customer’s training on “why” for certain decisions and behavior to ensure that they follow the plan.
“What type of discipline will that customer will have if they don’t understand why, right?” He said. “Education helps them to do the right thing, that is, stay for the course.”
In the survey, about three -quarters of respondents could not correctly answer questions about long -term maintenance costs and Medicare coverage. These figures are not promising, but they can improve among older Americans.
“I think we see a much higher level of admission to people who understand that they will need care. And like anyone, it is due to the experience,” said Boneco Advisors’ financial advisor in Fairfield, Connecticutis. “More and more people with 40 -ies, 50, 60 years old, now had the opportunity to look after the elderly in their family … And now they go,” Well, I know it happened to my mom and dad, so it really will happen to me, right? “So, the denial that our generation thinks is getting old because people live it.”
However, customers can understand how important it is to prepare for some long -term care needs, but that does not mean that they have the information they really do. That’s where the advisers come, Filla said.
“I give them opportunities, and this is an A, B or C option. So, pay for it, pay for insurance or let the state pay for it for Medicaid,” he said. ” And we go them through this by the time they can make their own decision. “
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Browse these options can become difficult, especially for customers who are not in an ideal financial situation, Sesok said.
“If you are not in the common green area and you are in the yellow zone where you will probably have long-term maintenance costs, but you will probably not be able to give up the full account, then I think there is a real and honest conversation about how we implement long-term care insurance in your financial situation?” He said. “It is always better to have insurance than zero.”
Customers can certainly be useful when they learn more about the opportunities accessible to them when it comes to long -term care, but few people are ready to make effectively making those related financial decisions independently, Sestok said.
“I don’t think that this is a topic that people should try to evaluate unless they really took a lot about this topic,” he said. “They should consult a professional.”
