Most Americans fail to calculate how much money they will need for a steady and lasting retirement income, according to a new report.
MetLife Mature Market Institute, Westport, Conn., published this finding in a summary of results of a 2011 MetLife Retirement Income IQ, a quiz that includes 15 intelligence-quotient questions and 9 questions to address respondents’ retirement security and planning. The quiz was administered online in June by GfK North America to 1,213 pre-retirees, aged 56 to 65, who are working full-time and are within five years of retirement.
Of the total polled, the majority answered only five of the 15 questions correctly, leaving persistent misperception and misunderstanding in a number of core areas, such as life expectancy, inflation, retirement income/savings, long-term care insurance and to some extent Social Security, MetLife reports.
In the 2008 version of the study, most respondents correctly answered six of the 15 questions. The 2011 study also asked questions related to additional aspects of Americans’ post-retirement income needs.