Most retirement plan participants learn about finances from their parents, according to new research.
OneAmerica Financial Partners, Inc. released this finding in a summary of results from an online survey of 6,360 retirement plan participants. OneAmerica polled visitors to its participant website to determine how they learned about finances and prepared for retirement, what resources are most effective and how confident they are with their retirement preparations.
Fifty-six percent of respondents reported learning about finances from their parents, choosing from a list that also included books, a teacher or other family members. Younger adults between the ages of 20 and 30 were even more likely (71 percent) to have learned from parents, the report states.
“They should understand how important it is that they, themselves, understand finances and the basics of retirement, knowing their children are learning from them.”
“Parents should take these findings to heart and understand the tremendous role they play in the financial literacy of their children,” says Marsha Whitehead, vice president of marketing communications for the retirement services division. “They should understand how important it is that they, themselves, understand finances and the basics of retirement, knowing their children are learning from them.”
Whitehead also says the OneAmerica companies’ recently launched participant education program, “One Day is Today,” which is designed to help participants take a fresh, serious look at their own retirement situation.
“These findings tell us that there’s opportunity for our industry to fill in knowledge gaps,” adds Whitehead. “We need to pool our resources and help parents raise financially literate children. Better educating participants about their own retirement plans could have a ripple effect on future generations of retirement plan participants.”
OneAmerica states that it plans to replicate the survey in coming years to gauge progress in helping participants prepare for a secure retirement.