Saving for retirement gets all the buzz. Accumulate, accumulate, accumulate is the incessant advice, along with reprimands that we’re not saving enough.
The savings gospel itself is not a bad thing, but the reality of what happens when we retire and how that translates to income and spending gets short shrift.
But a key to not running out of money in retirement is knowing how much you will pay yourself after you step out of the workforce and how much you’ll need to shell out for a myriad of living costs.
Most Americans aged 50 to 75 flunked a retirement income literacy quiz developed by The American College of Financial Services that tested their knowledge across a dozen areas, including inflation, investments, long-term care, Medicare, and Social Security.
It was an epic fail. The overall average retirement income literacy grade was 31% — out of a possible score of 100%.
Read more: Retirement planning: A step-by-step guide
Take this quiz to see how well you understand how best to manage your finances in retirement.
Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist, and the author of 14 books, including “In Control at 50+: How to Succeed in The New World of Work” and “Never Too Old To Get Rich.” Follow her on X @kerryhannon.
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