Retirement Revealed
Jeremy Keil
In the Retirement Revealed podcast, Jeremy Keil, CFP®, CFA shows you how to turn your retirement savings into retirement income. Listen in as Jeremy and his guests guide you towards making smarter retirement, investment, and tax planning decisions. Get free resources and learn how to have Jeremy and his team develop your own Retirement Revealed income plan at 5stepRetirementPlan.com. For important disclosures, see www.keilfp.com Keil Financial Partners may utilize third-party websites, including social media websites, blogs, and other interactive content. We consider all interactions with clients, prospective clients, and the general public on these sites to be advertisements under the securities regulations. As such, we generally retain copies of information that we or third parties may contribute to such sites. This information is subject to review and inspection by
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Chet Bennetts shares insights on the study that highlights the challenges facing the average American seeking financial literacy.
When it comes to retirement, knowledge truly is power. The more you understand your financial situation, the better you can navigate the complexities of retirement planning and make informed decisions. In this week’s episode of the Retirement Revealed podcast, Chet Bennetts–program director of the CFP®/ChFC® Program at The American College of Financial Services–shared his insights from a comprehensive survey of over 3,700 people about their retirement knowledge. The findings were eye-opening, but they also provided guidance for what knowledge is lacking or obscured for the average retiree or near-retiree.
What Do We Know About Retirement?
One of the key takeaways from Chet’s research is that Americans are quite knowledgeable about inflation and housing—two critical factors that heavily influence retirement outcomes. It’s encouraging to see that people are aware of how inflation can erode purchasing power and the importance of managing housing costs as they age. As Chet pointed out, these are areas where individuals have a significant amount of control, and it appears that many are making smart decisions to adjust their spending and housing situations in response to economic challenges.
This resilience in the face of inflation and rising housing costs is a positive sign. It shows that when retirees encounter financial obstacles, they often find ways to adapt and thrive. For instance, I recall working with a client about ten years ago who was eager to retire at 55. We ran the numbers, and the reality was that their income would drop by about 70% if they retired immediately. Despite this, they decided to go ahead with their plan. They made significant lifestyle adjustments, including taking on part-time jobs, which helped boost their income slightly. Today, nearly a decade later, they’re enjoying retirement and living comfortably on a reduced income. This experience highlights how important it is to be flexible and willing to make changes when necessary.
Areas for Improvement: The Gaps in Retirement Knowledge
While the survey showed that Americans are knowledgeable in some areas, it also revealed significant gaps in others. The topics where people scored the lowest included annuities, investments, long-term care, life expectancy, how to generate retirement income, and taxes. These are all critical components of a successful retirement strategy, and yet, they are the areas where many people feel least confident.
This lack of knowledge is concerning because these topics play a major role in ensuring financial security in retirement. For example, understanding annuities and how they can provide a steady income stream is crucial, as is knowing how to manage investments to avoid outliving your savings. Long-term care is another area that is often overlooked, but it’s a significant expense that can quickly deplete retirement funds if not planned for properly.
However, the good news is that these are precisely the areas where a good financial advisor can add value. Working with an advisor who can educate you on these topics and help you develop a comprehensive retirement plan can make a world of difference. As I always say, if you’re looking for a financial advisor, find one who prioritizes education. The goal should be to empower you with the knowledge you need to make informed decisions, not to overwhelm you with complexity.
Addressing Demographic Disparities in Retirement Literacy
The survey also uncovered some demographic disparities in retirement literacy. For example, there was a five-point gap in retirement literacy between men and women, and a seven-point gap between different racial and ethnic groups. This is unfortunate but not entirely surprising, given the historical and societal factors that have contributed to these disparities. However, these gaps can be overcome through targeted education initiatives and by working with a financial advisor who understands the unique challenges faced by different demographics.
One promising finding from the survey was that working with a financial advisor can significantly boost retirement literacy. There was an 11-point increase in literacy among those who worked with an advisor compared to those who did not. This underscores the importance of seeking professional guidance when planning for retirement, especially if you’re feeling uncertain about your financial knowledge.
Practical Steps to Improve Your Retirement Readiness
If you’re looking to improve your retirement readiness, there are several steps you can take. First, consider taking advantage of education initiatives designed to boost financial literacy. For example, Thrivent offers a program called “Money Canvas”, which provides free budgeting sessions. Another excellent resource is Dave Ramsey’s Financial Peace University, which offers comprehensive financial education.
Second, don’t hesitate to seek out a financial advisor who can help you navigate the complexities of retirement planning. A good advisor will take the time to explain your options, help you understand the risks and benefits of different strategies, and work with you to create a plan that meets your unique needs.
Finally, remember that retirement is a journey, not a destination. Your needs and circumstances will change over time, so it’s important to stay informed and be willing to adjust your plan as needed. By taking proactive steps to increase your financial literacy and working with a trusted advisor, you can feel more confident about your retirement and make better decisions that will lead to a secure and fulfilling future.
The road to retirement is filled with challenges, but it’s also full of opportunities. By learning more about your money, you’ll feel better about your financial situation and be better equipped to make the right decisions for your future.
Subscribe to Retirement Revealed to get new episodes every Wednesday.
Apple Podcasts: https://podcasts.apple.com/us/podcast/retirement-revealed/id1488769337
Spotify Podcasts: https://bit.ly/RetirementRevealedSpotify
Additional Links:
- 2023 Retirement Income Literacy Study – The American College of Financial Services
- Money Canvas – Thrivent
- Financial Peace University – Dave Ramsey
- LinkedIn: Chet Bennetts
Connect With Jeremy Keil:
- Keil Financial Partners
- LinkedIn: Jeremy Keil
- Facebook: Jeremy Keil
- LinkedIn: Keil Financial Partners
- YouTube: Retirement Revealed
- Book an Intro Call with Jeremy’s Team
Disclosures:
Content
Results and figures presented within the above links are hypothetical, unaudited and are intended for illustrative purposes only.
Liability
Keil Financial Partners assumes no liability or responsibility for any errors, omissions, or other issues with the links and their respective contents. This includes both the website content and any potential bugs, viruses or other technical threats.
No Tax Advice
Keil Financial Partners does not provide any tax advice. No information or results from the links should be interpreted as tax advice. Please seek guidance from a qualified tax professional for any and all tax-related matters.
No Investment Advice
The content and information provided through the links should not be interpreted as being investment advice or a recommendation of suitability for any particular security, portfolio of securities, transaction, or investment strategy, or related decision. Please seek assistance from a qualified investment professional for any and all investment matters.
Investment Risk
Investments may increase or decrease significantly. All investments are subject to risk of loss.
General Disclosure
Advisory Persons of Thrivent provide advisory services under a “doing business as” name or may have their own legal business entities. However, advisory services are engaged exclusively through Thrivent Advisor Network, LLC, a registered investment adviser. Keil Financial Partners and Thrivent Advisor Network, LLC are not affiliated companies. Please visit our website www.keilfp.com for important disclosures.
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212 - Improving Your Retirement Readiness: New Study Gives Top Tips Wed, 11 Sep 2024 - 0h
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210 - 5 Reasons to Retire ASAP with Ashley Micciche Wed, 28 Aug 2024 - 0h
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209 - How to Prepare for a Market Crash Early in Your Retirement Wed, 21 Aug 2024 - 0h
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207 - How to Stretch Your Money Until You’re 100 Wed, 07 Aug 2024 - 0h
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206 - How Financial Planning Changes when People Routinely Live Healthy to 100 Wed, 31 Jul 2024 - 0h
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205 - Remarriage & Social Security: What Happens Next! Wed, 24 Jul 2024 - 0h
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204 - How Money Talk Can Transform Your Marriage and Retirement Wed, 17 Jul 2024 - 0h
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203 - How to Decide the Right Time to Take Your Pension Wed, 10 Jul 2024 - 0h
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202 - How Financial Advisors Make Money Wed, 03 Jul 2024 - 0h
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201 - Maximizing Your Spousal and Survivor Social Security Benefits Wed, 26 Jun 2024 - 0h
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200 - How do Annuities Work? With David Lau Wed, 19 Jun 2024 - 0h
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199 - Key Findings from 2024 Retirement Survey You Can’t Miss Wed, 12 Jun 2024 - 0h
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198 - HSA Health Savings Accounts Strategies for 2024 Wed, 05 Jun 2024 - 0h
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197 - Are You Better Off Renting or Buying a Home in Retirement? Wed, 29 May 2024 - 0h
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196 - Are You Spending Too Little in Retirement? Wed, 22 May 2024 - 0h
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195 - Building a Path to Financial Freedom Wed, 15 May 2024
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194 - How to Avoid Major Risks and Build a Secure Retirement Wed, 08 May 2024 - 0h
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193 - Survey Reveals Common Keys to Retirement Satisfaction Wed, 01 May 2024
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192 - How Medicare Relates to Social Security Wed, 24 Apr 2024 - 0h
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191 - How to “Rightsize” Instead of Downsize in Retirement Wed, 17 Apr 2024 - 0h
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190 - When is the Right Time to File for Social Security? Wed, 10 Apr 2024 - 0h
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189 - Pickleball, (Un)Retirement and the Power of Retirement Planning Wed, 03 Apr 2024 - 0h
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188 - Listener Q&A: Lowering Taxes with IRA Conversions, Understanding RMDs & Gifting Strategies Wed, 27 Mar 2024 - 0h
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187 - Retirement Planning for Women Wed, 20 Mar 2024 - 0h
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186 - 3 Simple Steps to Get Ready for Retirement Wed, 13 Mar 2024
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185 - How to Make the Most of Retirement by Unretiring With Richard Eisenberg Wed, 06 Mar 2024 - 0h
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184 - Listener Q&A: Lifetime Tax Savings, Social Security Scenarios, Retirement Spending Wed, 28 Feb 2024
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183 - What You Need To Do In Your 40s, 50s, and 60s to Be Healthy in Retirement With Dr. Bryan Beaumont Wed, 21 Feb 2024 - 0h
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182 - How Life Expectancy Can Be The #1 Risk To Your Retirement Wed, 14 Feb 2024
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181 - The Most Overlooked Aspects of Retirement: A True Retirement Story with Fritz Gilbert Wed, 07 Feb 2024
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180 - Listener Q&A: Social Security, RMDs & Annuities Wed, 31 Jan 2024
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179 - 3 Things Conventional Retirement Wisdom Gets WRONG Wed, 24 Jan 2024 - 0h
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178 - Is Your Retirement Plan Flawed? With David Blanchett Wed, 17 Jan 2024 - 0h
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177 - How to Live a Purposeful & Regret-Free Life With Jordan Grumet Wed, 10 Jan 2024 - 0h
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175 - Will the 2024 Elections Impact Your Retirement? Wed, 27 Dec 2023 - 0h
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174 - Tax Savings Strategies for 2023 to Maximize Your Refund Wed, 20 Dec 2023 - 0h
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171 - How to Save $100k+ in Taxes for Your Retirement With Mike Jesowshek Wed, 29 Nov 2023
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170 - How Can Retirees Avoid the Tax Bomb in Their Portfolios? with David McClellan Wed, 22 Nov 2023
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169 - Avoid These Mistakes: Securing the Right Retirement Path with Brad Barrett Wed, 15 Nov 2023
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168 - Protect Your Finances: Essential Tips for Family Caregiving With Danielle Miura Wed, 08 Nov 2023 - 0h
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167 - The 3 Essential Medicare Decisions to Protect Your Health and Money with Ari Parker Wed, 01 Nov 2023 - 0h
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166 - Unlock the Secrets to an Abundant Life With Scott Ferguson Wed, 25 Oct 2023 - 0h
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165 - How To Get The Most Out of Your U.S. and Canada Retirement Accounts With Joe Curry Wed, 18 Oct 2023 - 0h
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164 - What are the Secrets to Retiring Happy, Healthy, and Free? Wed, 11 Oct 2023 - 0h
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