Nearly Two-Thirds of Americans Have Low Levels of Financial Literacy
Allstate Simplifies Financial Planning with Tips for Life’s Major Events
NORTHBROOK, Ill., April 8, 2019 – Financial education is vital to ensuring Americans are managing their money in the right way to protect themselves and their families from life’s uncertainties. Unfortunately, data shows that nearly two-thirds of Americans have low levels of financial literacy – including 76% of millennials – according to the Financial Industry Regulatory Authority (FINRA).[i] In response to this growing need for education, Allstate is providing financial tips to empower people to make confident decisions about their future just in time for Financial Literacy Awareness Month.
Investing for the Future
Planning for the future can be daunting. Whether people are just starting out, looking ahead to retirement or protecting loved ones with life insurance, Allstate is simplifying this process by providing tips to help guide them through each major life stage.
1. Entering the Workforce
Don’t become a statistic. Only half of young workers age 25-29 have a retirement account.[ii] It’s never too early to start identifying and prioritizing financial goals. If an employer offers a retirement program, young adults can start growing their tax-deferred retirement savings now; if the employer offers a match, they can take advantage of an additional growth opportunity.
2. Starting a Family
As soon as a couple starts thinking about welcoming a child, they should review their life insurance protection. While they may already have some coverage through work, that may not be enough, and if one parent chooses to leave work, that coverage will probably go away. They should at least have enough to cover income for eight to 12 years if a parent passes away.
Single parents take their financial stability even more seriously. With only one income, they’re focused on finding a balance between protecting what matters most and saving for the future. Many experts, including Allstate agents and financial specialists, offer free financial reviews to ensure they’re on the right financial path.
3. Planning for Retirement
Protecting what retirees have and planning for unexpected expenses is critical, especially if they want to pass on a legacy to children or grandchildren. To help reach their retirement goals, retirees need to review their retirement income plan at least once per year and ensure they have the right mix of investments to make retirement last.
Strategies such as boosting pre-retirement savings, working longer or delaying Social Security payments can all help decrease the likelihood of a shortfall. Another good idea is to consider earmarking guaranteed retirement income streams, such as Social Security and pensions, toward essential expenses. The funds designated for discretionary spending can be invested in assets with greater market exposure and opportunity for growth, such as stocks, Exchange Traded Funds (ETFs) or mutual funds.
4. Losing a Loved One
In addition to a life insurance policy that provides a lump sum payment, Allstate also offers Monthly Income Term, a life insurance policy that pays out like a monthly paycheck if a loved one passes away. This consumer-driven offering makes it easier for those on a budget to protect their families and standard of living.
Here are more tips and information on financial planning.
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[i] Financial Industry Regulatory Authority (FINRA), Infographic: Financial Literacy Levels
[ii] MacroMonitor Data, U.S. Households Ages 25-29
Allstate Monthly Income TermSM is a term life insurance policy issued by Allstate Assurance Company, 3075 Sanders Rd., Northbrook IL 60062 and is available in most states with contract series ICC18AC11/NC18AC11 and rider series ICC18AC12/NC18AC12. Policy issuance is subject to availability and qualifications. This policy has exclusions, limitation and terms that may affect coverage, renewal, cancellation, termination, or other contractual rights and benefits. Guarantees offered are subject to the claims-paying ability of the issuing company. Not available in New York.