Most Adults Fail This Simple 5-Question Retirement Knowledge Quiz — Can You Pass?

Jeannine Mancini

11 June 2024 at 4:00 pm·4-min read

A recent survey by the TIAA Institute and the Stanford-based Global Financial Literacy Excellence Center (GFLEC) reveals significant gaps in Americans’ knowledge about retirement essentials like Medicare, Social Security, and workplace savings plans.

The survey, which polled nearly 3,900 people aged 18 and over in January 2024, showed disappointing results. Fewer than 40 percent answered at least three of the five retirement-related questions correctly.

Don't Miss:

The average American couple has saved this much money for retirement — How do you compare?
Can you guess how many Americans successfully retire with $1,000,000 saved? The percentage may shock you.

The average participant answered just two questions correctly, with a troubling one in five unable to provide any correct answers. This lack of retirement fluency could seriously affect financial security in later years.

Senior economist at the TIAA Institute, Paul Yakoboski, pointed out the direct effects of this knowledge gap. "How long retirement tends to last has a direct impact on how you manage assets and draw them down," he noted. Knowledge of Social Security and its workings, for example, can help determine the optimal time to start benefit claims, which can significantly increase retirement income.

Despite these challenges, the survey showed some positives. Older generations like the Silent Generation and Baby Boomers performed better on the retirement questions, likely due to their closer proximity to or current experience with retirement. They scored around 50 percent correct answers on average.

Thasunda Brown Duckett, CEO of TIAA, stressed the importance of financial literacy, saying, "This report shows that if we're going to improve retirement outcomes, we have to start by improving our understanding of how to save and how long our retirements will be." She explained that while there is no quick fix or instant solution, enhancing access to educational resources and acting purposefully will set Americans on the path to financial health and resilience.

Trending: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." These high-yield real estate notes that pay 7.5% – 9% make earning passive income easier than ever.

Test Your Retirement Knowledge Curious about how well you understand retirement planning? Here are the five key questions from the 2024 TIAA Institute/GFLEC survey. See how your answers stack up:

Social Security Accuracy: Which statement about Social Security is false? A. Social Security benefits depend on earnings in the last two years of employment. B. Social Security provides benefits if you become disabled before retiring. C. Social Security payments continue for life, regardless of longevity. D. Don’t know.
Medicare Coverage: What percentage of a retiree’s health care expenses does Medicare typically cover? A. Over 90%. B. About two-thirds. C. About half. D. Don’t know.
Maximizing Retirement Savings: If Latisha contributes $2,000 to a 401(k) plan and her employer matches up to $5,000, how much will she have by year’s end if the fund grows by 5%? A. $2,100 in a 401(k). B. $2,100 in an IRA. C. The same amount either way. D. Don’t know.
Planning for Longevity: What's the best way for Susan to ensure she doesn't outlive her savings? A. Buy an annuity. B. Buy life insurance. C. Nothing can be done. D. Don’t know.
Life Expectancy: How long is a 65-year-old man expected to live, on average, in the U. S.? A. 14 more years (age 79). B. 19 more years (age 84). C. 24 more years (age 89). D. Don’t know.

For women, how long is a 65-year-old woman expected to live? A. 17 more years (age 82). B. 22 more years (age 87). C. 27 more years (age 92). D. Don’t know.

Answers: 1. A; 2. B; 3. A; 4. A; 5. B (for both men and women).

Whether you’re a retirement planning pro or just starting to learn the ropes, consulting with a financial advisor is a smart move. A professional can offer tailored advice that fits your personal financial situation and retirement goals. Remember, it’s never too early or late to start planning for your future. Expert guidance can go a long way in ensuring you make the most of your retirement years.

Read Next:

How much are people earning in yearly salary to afford a $40,000 boat comfortably? The number is less than you think!
Warren Buffett flipped his neighbor's $67,000 life savings into a $50 million fortune — How much is that worth today?

"ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now!

Get the latest stock analysis from Benzinga?

This article Most Adults Fail This Simple 5-Question Retirement Knowledge Quiz — Can You Pass? originally appeared on Benzinga.com

BuzzFeed
21 Clueless Bosses Who TRULY Are Making Their Employees' Lives A Living Hell
I simply have no words for this behavior.
SmartAsset
How Much Does the Average 70 Year Old Have Saved?
Part of retirement planning includes determining how much to save and invest so you can enjoy the type of lifestyle you desire. Setting your savings target by age can be a good way to organize your strategy and gauge how … Continue reading → The post How Much Does the Average 70-Year-Old Have in Savings? appeared first on SmartAsset Blog.
Business Insider
Baby boomers living on $1,000 a month in Social Security share their retirement experience: 'I never imagined being in this position.'
Retirees explain what it's like to live on Social Security checks and no savings.
The Telegraph
Labour’s net zero hopes threatened by plunge in factory apprenticeships
Labour’s plan for a net-zero economy powered by wind turbines and electric vehicles (EVs) risks being thwarted by a huge drop in factory apprenticeships, British manufacturers have warned.
Reuters
India human rights body says Reuters story on Foxconn hiring raises discrimination concerns
India's human rights watchdog said on Monday it had asked government officials to examine reported discrimination by Foxconn, after a Reuters investigation found the major Apple supplier has been rejecting married women from iPhone assembly jobs in the country. In a statement, the National Human Rights Commission (NHRC) said it had issued notices to the secretary of Prime Minister Narendra Modi's labour ministry and the chief secretary of the state government of Tamil Nadu, site of a major iPhone factory, calling for a detailed report within a week.
Reuters
Anglo American shares slide on jitters over Australian coal mine fire
LONDON (Reuters) -Shares in Anglo American slid as much as 4% on Monday, with investors worried over what impact an ongoing underground blaze at a coal mine in Australia could have on the miner's plan to sell its coal portfolio, part of a broader bid to add value. Anglo has been battling a fire ignited at its Grosvenor steelmaking coal mine in Australia's Queensland state on Saturday. "The underground combustion event is ongoing; however, the QMRS (Queensland Mines Rescue Service) mobile extinguisher unit is now fully operational, and smoke has visibly reduced," it said in a statement on Monday.
SmartAsset
How to Master the Last 5 Years Before Retirement
Retirement can seem like a faraway goal until all of a sudden, it's not. When you only have a few years left until you retire, the financial decisions you make take on a new importance. Once you're inside the five-year window, that's a good time to review your plan to make sure you're on track. […] The post How to Master the Last 5 Years Before Retirement appeared first on SmartReads CMS - SmartAsset.
Insider Monkey
The Wealthiest Person in Norway
We recently compiled a list of the 12 Wealthiest People in Norway and in this article, we will look at the richest person in Norway. Norway’s Economy: An Outlook Norway is a highly developed country with a rather small yet robust economy. It is one of the richest countries in the world with a GDP per […]
The Telegraph
How British ‘snobbery’ left restaurants scrambling for staff
When Yotam Ottolenghi slashed the opening hours at some of his London restaurants last year, the celebrity chef blamed an inability to recruit enough staff.
SmartAsset
I Have $900k in a Roth IRA and Would Receive $2,200 Monthly from Social Security. Can I Retire at 66?
Retiring at 66 with $900,000 in a Roth IRA and $2,200 in Social Security benefits likely is a reasonable plan for many retirees. The income you could reasonably expect to generate from your Roth withdrawals, coupled with your Social Security benefit, probably will be somewhat more than the typical retiree's expenses. You can likely expect […] The post I Have $900k in a Roth IRA and Would Receive $2,200 Monthly from Social Security. Can I Retire at 66? appeared first on SmartReads by SmartAsset.
SmartAsset
What's the Best Way to Handle My 401(k) Once I Retire?
Managing your 401(k) in retirement every bit as important as managing it up to that point. There are plenty of reasons for this but the big one is, you're going to need this money for a long time. With good health and good luck, you could spend almost as much time in retirement as you […] The post What Should I Do With My 401(k) Once I Retire? appeared first on SmartReads by SmartAsset.
Eastern Daily Press
Banking hub opens in town after Lloyds closure
A permanent banking hub has opened in Downham Market's High Street after Lloyds closed the west Norfolk town's last bank three months ago.
CNN Business
‘I can’t get paid.’ Cyberattack affecting car dealerships brings chaos for sellers, buyers and workers
As the ongoing systems outage at software provider CDK Global stretches into its second week, car dealerships are racking up millions of dollars in losses, according to a new estimate.
PA Media: UK News
Christian social worker refused job due to views says he will appeal judgment
An employment tribunal has produced a mixed ruling after Felix Ngole claimed he was discriminated against by a health charity.
Reuters Videos
Spirit Aero to be broken up in $4.7 bln Boeing deal
STORY: Boeing said Monday it will buy its supplier Spirit Aerosystems for $4.7 billion.The U.S. planemaker moved after a crisis caused by a mid-air blowout on a 737 MAX jet led to questions over quality.Boeing rival Airbus has also agreed to take on the supplier's loss-making Europe-focused activities, in return for hundreds of millions of dollars of compensation.Boeing spun off Spirit in 2005, and has long considered a buyback.The decision to go ahead now comes as the aerospace giant tries to resolve a crisis at one of the industry's key suppliers.January's blowout incident involved a door plug made by Spirit, and contributed to a major slowdown in output at Boeing.The planemaker announced the planned departure of CEO Dave Calhoun in the wake of the crisis.Now the deal is due to close around midway through next year, and is seen as an effort to address its safety problems and shore up its production line.Airbus is also a Spirit customer, and didn't want arch-rival Boeing building parts for its latest jets. It has now confirmed it will take over core activities at four of the supplier's plants to avoid that.Sources said the move was loosely coordinated between the three companies. Airbus said it would receive $559 million in compensation from Spirit, depending on the final outlines of the deal.
Echo
Next opening newest store near Southend Airport within weeks - with 36 new jobs
A NEW Next store is preparing to open at the Southend Airport retail park in just a few weeks time, creating more than 30 new jobs
The Telegraph
Streamlined Brexit rules see the return of British workers to the Alps this winter
Spending the winter working in a ski resort will be easier for Britons this year, following the streamlining of the hefty post-Brexit employment process. Working in a ski resort has long been a rite of passage for ski-mad Britons. As inventors of the catered ski chalet holiday, it’s been British workers who have staffed these chalets for decades, as well as many of the bars and nightclubs in Alpine resorts popular with UK holidaymakers. After Brexit, the legal requirements surrounding the hiring
Bloomberg
Saudi Aramco Awards $25 Billion in Contracts For Gas Expansion
(Bloomberg) -- Saudi Aramco has awarded construction contracts worth $25 billion for the development of its Jafurah gas project, as it looks to boost production of the fuel considered a key part of plans to reduce plant-warming emissions.Most Read from Bloomberg24-Hour Stock Trading Is Booming – and Wall Street Is RattledBlackRock Buys Preqin for $3.2 Billion in Private Data PushFrance’s Market Rally Falters as Investors See Enduring RiskJustice Department to Charge Boeing, Seeks Guilty Plea fro
Reuters
EU regulators set to charge Meta over 'pay or consent', FT reports
Regulators are set to charge Facebook's parent with breaking digital rules by requiring users to pay a subscription or consent to ads, the Financial Times reported, citing sources.
Wiltshire Times
'Ultrafast broadband' could be provided to more people in South Wiltshire
Wessex Internet is opening a new base in Wiltshire.

NIKKEI 225

HANG SENG

CRUDE OIL

GOLD FUTURES

DOW

Bitcoin GBP

CMC Crypto 200

NASDAQ Composite

UK FTSE All Share

Trending tickers: Boeing, Harland and Wolff, oil, BlackRock

Most Adults Fail This Simple 5-Question Retirement Knowledge Quiz — Can You Pass?

Latest stories

21 Clueless Bosses Who TRULY Are Making Their Employees' Lives A Living Hell

How Much Does the Average 70 Year Old Have Saved?

Baby boomers living on $1,000 a month in Social Security share their retirement experience: 'I never imagined being in this position.'

Labour’s net zero hopes threatened by plunge in factory apprenticeships

India human rights body says Reuters story on Foxconn hiring raises discrimination concerns

Anglo American shares slide on jitters over Australian coal mine fire

How to Master the Last 5 Years Before Retirement

The Wealthiest Person in Norway

How British ‘snobbery’ left restaurants scrambling for staff

I Have $900k in a Roth IRA and Would Receive $2,200 Monthly from Social Security. Can I Retire at 66?

What's the Best Way to Handle My 401(k) Once I Retire?

Banking hub opens in town after Lloyds closure

‘I can’t get paid.’ Cyberattack affecting car dealerships brings chaos for sellers, buyers and workers

Christian social worker refused job due to views says he will appeal judgment

Spirit Aero to be broken up in $4.7 bln Boeing deal

Next opening newest store near Southend Airport within weeks - with 36 new jobs

Streamlined Brexit rules see the return of British workers to the Alps this winter

Saudi Aramco Awards $25 Billion in Contracts For Gas Expansion

EU regulators set to charge Meta over 'pay or consent', FT reports

'Ultrafast broadband' could be provided to more people in South Wiltshire