Trying to understand financial jargon feels like trying to crack a code. 🕵️ The prize? Feeling good about your financial situation and knowing where to turn for help. What? Did you think we were going to say a gooey chocolate center? Or a pot of gold?! 🤣🍫🌈
Unfortunately, fancy finance mumbo-jumbo deflates the confidence many Americans have in their retirement plans. 🫠 A new survey just dropped showing some pretty eye-opening results and we're breaking down the details.
Here’s Five Fast Facts on how financial jargon impacts retirement plans:
- 💲 Retirement For Sale - The survey results revealed that only 30% of adults felt highly confident about the retirement products available to them. The data also showed that 76% of adults 50 and older had little or no confidence at all about retirement products, even though they're close to retirement age.
- 🤷 Where Do I Begin? - Over a third of survey respondents said their lack of confidence comes from not knowing where to start. Also, 34% said the financial jargon around investments and retirement is too complex. A little over half of the respondents said they have a strong knowledge about 401(k)s, 403(b)s, and IRAs, but only 12% felt they had a strong familiarity with annuities. Even less (11%) said they felt knowledgeable about defined benefit plans.
- 🤢 Queasy and Uneasy - The survey also revealed the key concerns around retirement are inflation (59%) and healthcare or unexpected risks (56%). Many Americans feel uneasy about the state of the country's healthcare system and whether or not they'll be able to afford care in the future.
- 💼 Not Very Professional - One of the main reasons folks may feel confused and concerned about their retirement plans could be due to a lack of professional input. Almost half of those surveyed said their main sources of financial advice were family, friends, and the internet.
- 🆘 Sending Out an S.O.S. - Only 30% of respondents hit up a living, breathing financial advisor for guidance. One out of four respondents who reported feeling confident about their retirement strategy said it was because they had a financial planner's assistance.
🔥Bottom line: In many cases, fancy-schmancy financial language is unnecessary. Yeah, there may be some words and concepts you can't explain in simple terms, but for the most part, investing and retirement planning aren't that complicated. The good news is that more and more financial support is popping up to help you navigate the waters. Head here for some free personal finance courses! Check out this article to learn how to save for retirement without a 401k.
Does fancy financial jargon get in the way of your retirement planning?
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