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Only 34% Confident About Their IRA Knowledge

Only 34% Confident About Their IRA Knowledge

By Floyd Miller

 

 

 

Only about one-third of Americans believe they are knowledgeable about individual retirement accounts, despite the fact that Americans have used traditional IRAs for retirement saving over the past 45 years.

LIMRA Secure Retirement Institute found lack of knowledge is the biggest obstacle to investing in an IRA. A LIMRA SRI study revealed only 34 percent of Americans believe they are knowledgeable about IRAs. Men are far more likely than women to say they are knowledgeable about IRA. Forty-two percent of men consider themselves knowledgeable about IRAs, compared with 27 percent of women. Of those who don’t own an IRA, nearly half (46 percent) said they did not understand enough about IRAs to contribute to them. Older Americans are more likely than younger Americans to own traditional IRAs, LIMRA SRI reported. Almost half (48 percent) of silent generation Americans own an IRA, compared with 30 percent of baby boomers, Generation X and millennials. Ownership of Roth IRAs is much more level across age groups. About one in five boomers (19 percent), Gen X (19 percent) and millennials (18 percent) own a Roth IRA, along with one in six silent generation (16 percent) consumers.

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