Retirement planning is an important issue for most Americans. According to Cindy Couyoumjian, a Certified Financial Planner and CEO of Cinergy Financial in Tustin, California, financial literacy and retirement planning go hand in hand.With changes being made to the Social Security System in the United States, personal savings and private pension plans are likely to play an even more important role when it comes to retirement savings in the future.
This is one of many reasons that financial literacy is a necessity. Being financially literate opens a world of possibilities when it comes to your money, including giving you the ability to develop a suitable retirement strategy. Cindy Couyoumjian is an expert in creating investment opportunities for her clients and always seeks to empower them to make sound financial decisions. However, she knows better than most how little knowledge the average American has about their personal finances. Specifically, experts have witnessed a lack of knowledge surrounding how to develop a financial plan for retirement, as well as how much money is needed to live comfortably after retirement.
To begin, Financial Planner Cindy Couyoumjian wants to highlight a few key statistics:
1) 33% of American adults have saved no money for retirement.
2) 56% of American adults have saved less than $10,000 for retirement.
3) Only 19% of Americans are confident that they are saving and investing appropriately for retirement.
Further studies show that most people have no idea how much money they need to save in order to retire. All these findings are troublesome at best and prove that there is a serious lack of knowledge surrounding retirement. That said, this financial illiteracy is not necessarily the fault of individuals. With state and local governments frequently introducing reforms to their retirement plans, it makes it increasingly difficult for the public to understand. However, this doesn’t change the fact that failure to learn how to effectively manage your finances can lead to negative, monetary consequences.
Cindy Couyoumjian also reminds us that time is of the essence when it comes to retirement planning. After all, in today’s economy, it is estimated that most Americans will need $1 million in savings to retire comfortably, while Millennials and Gen Z will likely need over $1.7 million to retire comfortably. That is why Cindy Couyoumjian urges Americans to do everything in their power to learn about money management. If you don’t have the means to hire a financial planner, it is important that you complete some independent research. There is a wealth of financial information on the internet and in your local library or bookstore that can provide a jumping off point when it comes to developing a retirement plan.
Cindy Couyoumjian asserts that the onus should be on the public sector when it comes to educating Americans about their personal finances. As employer-provided benefits become increasingly complicated and uncertain, the government should be offering financial literacy programs aimed at helping adults understand and prepare for their financial futures. Thankfully, some cities have already stepped up. Recently, Los Angeles created a Retirement Income Replacement Calculator tool that is available to the public and allows people to gain insight into the amount of money they’ll need to save in order to achieve their retirement goals.
Overall, developing a retirement strategy when you’re young will not only give you peace of mind later in life, but will quite possibly allow you to retire earlier than you thought, says Cindy Couyoumjian. Ultimately, a higher degree of financial literacy has the capability to directly improve the financial wellbeing of Americans.