The odds are against people having significant retirement wealth if they are ‘financially illiterate,’ says expert
recently released
showing about 30 per cent to 40 per cent of retirement wealth inequality is due to a lack of financial knowledge. You can be socio-economically privileged and have a great education, but if you’re financially illiterate, the odds are against you having significant retirement wealth.Financial literacy can be broken up into four different areas – how to spend, how to borrow, how to save, and how to invest.
It comes back to financial literacy. It’s a huge problem. People don’t know how to invest their savings. These are new, innovative products that can help make retirement investments more accessible.A crucial role that advisors play is as a coach, reminding their clients to stay the course when it comes to investing, especially when markets drop.