[Video] 3 Reasons Why Financial Literacy Is So Important
Having a good understanding of finances and financial planning can help you make better money decisions, budget properly, and be better prepared for retirement.
Here are a few reasons why financial literacy is so important today:
- Longer Life Span
In 1960, the average lifespan was 69.7 years. Today, it’s 78.7 years – an increase of nearly 10 years! Because we’re living longer, we’ll need to save more for retirement - yet the average American has only saved 10-30% of what they'll need by the time they reach retirement age.
- Reduced Pensions
It used to be the case that many workers retired with a healthy pension. Today, the majority of companies have done away with pensions, leaving employees with the need to create their own retirement savings plan. We don't have to look far to see that this experiment is not working out so well.
- Not Enough Social Security Benefits
The average Social Security benefit paid per month is $1,503 for 2020 – which is a great help, but not nearly enough to live on comfortably in many areas of the U.S. It’s vital that retirees plan ahead to have another source of income.
Financial literacy is the first step in protecting your future. Your financial advisor should be able to help educate you on the various options available to you, and help you put together a plan to achieve your desired level of retirement savings by the time you retire. You can also browse our blog for lots of helpful articles to help you improve your financial literacy and prepare for your financial future.
Want to discuss your financial plan and make sure you're on track? Contact our office for a free initial strategy session with one of our professional retirement planning specialists!
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